On April 21, 2021 the White House released a statement calling for all employers to offer full pay for employees receiving or recovering from COVID-19 vaccinations. It also calls for employers to assist with further vaccination efforts within their organizations and surrounding communities by encouraging accurate and timely communication about vaccinations to employees and customers.
The announcement reminds employers of the American Rescue Plan Act’s paid leave tax credit that will offset the cost for employers with fewer than 500 employees. The details regarding the tax credits remain the same; President Biden was encouraging employers to take advantage of the tax credit and grant employees paid time for vaccination related absences.
The tax credit applies to paid leave provided to each employee between April 1, 2021 and September 30, 2021. The credit is capped at to 80 hours (i.e. 10 workdays) up to $511 per day of paid sick leave offered. More details about the tax credit can be found in an Internal Revenue Service (IRS) fact sheet.
If you have questions regarding this alert, please contact your local Hays representative.
Please be advised that any and all information, comments, analysis, and/or recommendations set forth above relative to the possible impact of COVID-19 on potential insurance coverage or other policy implications are intended solely for informational purposes and should not be relied upon as legal or medical advice. As an insurance broker, we have no authority to make coverage decisions as that ability rests solely with the issuing carrier. Therefore, all claims should be submitted to the carrier for evaluation. The positions expressed herein are opinions only and are not to be construed as any form of guarantee or warranty. Finally, given the extremely dynamic and rapidly evolving COVID-19 situation, comments above do not take into account any applicable pending or future legislation introduced with the intent to override, alter or amend current policy language.
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