The federal American Rescue Plan Act (ARPA) provides tax credits to covered employers who provide certain sick and family leave wages to employees between April 1, 2021, and September 30, 2021.
On July 29, 2021, the IRS updated its ARPA FAQS to add wages paid (1) for leave to accompany an “individual” to a COVID-19 vaccination, and (2) to care for an “individual” recovering from a COVID-19 vaccination-related illness. An “individual” includes a “family member,” someone who regularly resides in the employee’s home, or a person with whom the employee has a relationship that reasonably would include caring for that person (outside of the employment context).
As a reminder, employers covered by the ARPA may receive tax credits for providing up to two weeks (i.e., no more than 80 hours) of paid sick leave at 2/3 of an employee’s regular rate of pay (up to $200 per day or $2,000 total), and up to 12 weeks of family leave at 2/3 of an employee’s regular rate of pay (up to $200 per day or $12,000 total).
Don’t forget about your obligations COVID-19 sick leave under SB 95, too.
Be careful out there.
Review the FAQs here. Review SB 95 here. Review our prior post on SB 95 here.