Tax Credits Encourage Employers to Provide Vaccination Leave

The White House implemented changes to COVID-19 relief programs in July that may help Pennsylvania employers.  Designed to encourage employees to get vaccinated, the Biden Administration announced a change to a tax credit that allows employers to be reimbursed for time taken by eligible employees when getting or recovering from a vaccine or caring for family members who have.  Initially intended to blunt the effects of Coronavirus-related time off, the American Rescue Plan expanded the scope of the tax credit to apply to the time taken for an employee to receive a vaccination.  Most recently, the administration issued guidance including employees’ families as an eligible reason for an employer to claim the credit.

Under the revised guidance, in addition to the time taken after contracting coronavirus, employers can extend paid time off for employees to receive a coronavirus vaccination (and recover from any side effects) or to care for their family as they get vaccinated in the same way.  More information on the credit, including details on eligibility and how to claim, is available at the IRS website.


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