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. It is funded through an existing program under the American Rescue Plan Act (ARPA) that provides tax credits to eligible employers that voluntarily provide paid leave for certain COVID-19-related reasons through September 30, 2021.

The tax credit is available to organizations with fewer than 500 employees and covers up to $511 per day for each employee who received the vaccination. The Internal Revenue Service (IRS) released a fact sheet to guide employers on how to claim the paid-sick-leave credit on their quarterly tax filings.

KRS professionals are available and happy to provide guidance on tax credits. Visit the KRS Coronavirus Resources Page for additional information. Please contact us if you have any questions, concerns, or need advisement during this unprecedented time.