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Some small businesses can still apply for federal tax credits to cover employee paid leave

IRS demands families return stimulus checks sent to dead relatives
Posted at 11:50 AM, Jun 16, 2021
and last updated 2021-06-16 11:50:15-04

BALTIMORE — Some local small businesses can still apply for federal tax credits to cover paid sick and family leave for employees.

The federally passed American Rescue Plan allows businesses with less than 500 employees to receive up to $17,110 per worker that could provide up to 10 days of paid sick leave and up to 12 weeks of paid family leave, through the end of September.

Workers can also use leave to receive a COVID-19 vaccination and time to recover from any potential side effect.

To earn the credit, businesses may reduce the amount of money normally set-aside for payroll taxes and employee withholding's.

They can then claim any excess on their quarterly tax filings or request an advanced payment from the IRS.

Certain self-employed residents may be entitled to similar credits as are schools, public hospitals and other state and local government employers.

Learn more here.