Today, U.S. Rep. Kathy Castor (FL14) announced that the IRS will continue to provide an American Rescue Plan tax credit to help local small businesses cover the costs of providing paid sick and family leave for workers through September. Along with using the leave to care for themselves and family who are sick, workers can also use leave to get their coronavirus vaccinations and take time off to recover from any temporary side effects from the shot. Research has shown that states where employees gained access to paid sick leave through this tax credit experienced a slow-down in the spread of COVID.

“Tampa small businesses were hit hard over the past year, and tax credits like this one have helped keep paychecks in pockets, allowed businesses to keep their doors open and ensured workers are safe and healthy on the job,” said Rep. Castor. “The extension of this tax credit, along with the Paycheck Protection Program and other critical federal aid, will help us build back better as we crush covid and reenergize our local economy.”

Employers with fewer than 500 employees may receive up to $17,110 per employee to provide employees with up to 10 days of paid sick leave and up to 12 weeks of paid family leave, from April 1 through September 30, 2021. Certain self-employed individuals in similar circumstances may also receive similar credits as are schools, public hospitals and other state and local government employers.  

Businesses can access the advanceable, refundable tax credit in real-time by reducing their amounts they set-aside to pay payroll taxes and employee withholding, and then claim any excess on their quarterly tax filings or request for an advance payment from the IRS.

Roughly 6 million businesses and more than 30 million workers are eligible for this credit nationwide.

Businesses can find instructions for how to claim their credit HERE.