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President Joe Biden announced Wednesday that employers who are offering COVID-19 vaccine-related paid leave to their employees are now eligible for a tax credit.

Biden and his administration set a goal to have at least 100 million COVID-19 vaccinations administered within his first 100 days in office. As of yesterday, a total of 200 million vaccines have been administered.

Biden believes “no working American should lose a single dollar from their paycheck because they chose to fulfill their patriotic duty of getting vaccinated.”

With that, comes the new small- and medium-sized business tax credit: employers with less than 500 employees are able to get a tax credit to regain the costs of offering COVID-19 vaccination PTO to their employees.

Between April 1, 2021 and September 30, 2021, PTO (up to $511 per day for up to 80 hours/10 workdays) can be offered for each employee who has received the vaccination. This includes both time to get the vaccine and time to recover from any potential side effects of it. The tax credit is designed to offset the costs of this benefit.

“Every employee should get paid leave to get a shot, and businesses should know that they can provide it without a hit to their bottom line,” Biden said.

This newly introduced tax credit is part of the $1.9 trillion Covid stimulus plan Biden signed into law just last month.

More than half of all US adults have received one shot within the last week, and more than 80% of Americans 65 and older will have been either partially or fully vaccinated by the end of this week.

“This is an American achievement – a powerful demonstration of unity and resolve, what unity will do for us, and a reminder of what we can accomplish when we pull together as one people to a common goal,” Biden said.

Resourcing Edge aims to support whatever decision you choose is best for your business regarding the COVID-19 vaccine and your employees. Still, do not hesitate to contact one of our HR Professionals if you have any questions or concerns about the vaccine or the new tax credit.

Matt Kinnear

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