IRS Issues Employer Resources on FFCRA Leave Tax Credits

calendar April 26, 2021
| 2 Minute Read

IRS Issues Employer Resources on FFCRA Leave Tax Credits 

The IRS has released new resources explaining the tax credits available for employers who opt to provide paid family leave and paid sick leave under the Families First Coronavirus Response Act (FFCRA) and the American Rescue Plan Act (ARPA) through Sept. 30, 2021. The new resources consist of a fact sheet and a “snapshot” document published on April 21, 2021, in conjunction with public remarks by President Joe Biden calling on employers to help their employees get vaccinated.

Qualifying Leave 

Under the ARPA, eligible employers may take a tax credit (within set limits) against their share of the Medicare tax to fund the cost of paid employee leave taken for specific COVID-19-related reasons, including to receive and recover from vaccinations. The credits are available from April 1-Sept. 30, 2021.

Eligible Employers

Employers with fewer than 500 employees are eligible for the credit, with the exception of federal government employers and any agency or instrumentality of the federal government that is not a 501(c)(3) organization.

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