Tax Credit for Vaccination Paid Time Off

Employers that provide full pay for employees who take time off to get and recover from a COVID-19 vaccination are eligible for a paid-leave tax credit.

The tax credit is available to organizations with fewer than 500 employees and covers up to $511 per day for each vaccinated employee.

NJ Small Business Relief Grants UPDATE

New guidance further specifies which small businesses qualify for grants. Interested business owners must also pre-register to access the application. Pre-registration begins on April 19 at 9am. The application itself will be available through a phased approach, starting with businesses that didn't apply or weren't approved for Phase 3 funding.

NJ Small Business Relief Grants

Governor Murphy recently signed two bills establishing more grant funds for small businesses in New Jersey.

The first program puts $25 million towards grants for microbusinesses, meaning companies with five or less employees. This program is expected to follow previous programs and microbusinesses would be eligible for $1,000 per employee with a maximum of $5,000.

American Rescue Plan Act Increases Dependent Care FSA Contributions

The American Rescue Plan Act (ARPA) raises pretax contribution limits for dependent care flexible spending accounts (DC-FSA) for the 2021 calendar year. A dependent care FSA is a pretax benefit account used to pay for services such as day care, preschool, summer camps, and before or after-school programs.

PPP Application Deadline Extended to May 31

The PPP Extension Act of 2021 passed in the U.S. Senate yesterday and is expected to be signed into law by President Biden. The bill extends the Paycheck Protection Program (PPP) application deadline from March 31, 2021 to May 31, 2021. The bill will also provide the Small Business Administration (SBA) with an additional 30 days to process pending applications. It does not provide any additional funding for the current round of the PPP.

CA Employers Must Provide Paid Leave for COVID-19

California employers must provide employees with up to 80 hours of COVID-19 supplemental paid sick leave for eligible employees, including those advised to quarantine or isolate and those caring for COVID-impacted family members.

American Rescue Plan Act Extends Employer Tax Credits, Doesn’t Require Leave

The American Rescue Plan Act (ARPA) does not require Families First Coronavirus Response Act (FFCRA) paid and emergency family leave, but does extend and expand the tax credits for employers. ARPA extends these tax credits through September 30, 2021.

NJ and NY Tax Deadline Extended

New Jersey and New York have extended the filing deadline to May 17, 2021, following the IRS.

Only a small number of states have not extended their filing deadline. First quarter estimated taxes are still due on April 15.

NY Employers Must Provide Paid Leave for COVID-19 Vaccination

New York State employers must provide employees with up to four hours of paid time off per COVID-19 vaccination. The law takes effect immediately and ends on December 31, 2022. Similar legislation is pending in other states and jurisdictions.