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Tax Credits Available for Employer’s Providing Time Off for Employee’s Receiving or Recovering from the COVID-19 Vaccine

August 31, 2021
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The American Rescue Plan of 2021 expanded the Families First Coronavirus Relief Act (FFCRA) sick leave credits to also apply for employees who receive the COVID-19 vaccine and have any other effects from the vaccine.

Who is eligible?

Recently, the IRS updated guidance on this credit. In addition to receiving a credit for employees who receive or are recovering from the vaccine, employers can also receive the credit for anyone:

  • Accompany an individual with a qualifying relationship to the employee or self-employed person who is obtaining a vaccination or
  • Care for an individual with a qualifying relationship to the employee or self-employed person who is recovering from a vaccination.

For employees taking time off to help family members with the vaccine, the employer can receive a tax credit up to two-thirds of the employee’s regular hourly pay but no more than $200 per day.

If an employee is getting or recovering from the vaccine for him/herself, then the credit is up to 100 percent of the employee’s regular hourly pay but no more than $511 per day.

Claiming the Credit

To take the credit, employers should have a request from the employee with the employee’s name, dates of requested leave, and a statement that the leave was due to getting the COVID vaccine or recovering from the COVID vaccine.

If you have questions about the credit or need help with the credit, reach out to your YHB Advisor today!

About the Author

Nick Preusch, CPA, JD, LLM, MSA

Nick joined YHB in 2020 with over 15 years of experience in the industry. Nick is a graduate of Carthage College with a BS in Accounting and Business, the University of Connecticut with an MA in Accounting, Case Western Reserve University with a JD, and Georgetown University with an LLM in taxation. Nick has also worked with the Internal Revenue Service as a Revenue Agent and an Attorney with the IRS Office of Professional Responsibility.

Nick’s expertise includes helping high wealth individual and large business entities with complex tax compliance, along with specializing in international, non-for-profit tax issues, and tax ethics issues.

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