Thompson Announces Tax Credit to Cover Cost of Paid Leave for Small Businesses is Extended Through September
Washington – Today Rep. Mike Thompson (CA-05) announced that a tax credit to help local small businesses cover the cost of providing sick and family leave has been extended through September. This tax credit, created by the American Rescue Plan, allows workers to care for sick family members, take time off if they are sick and use paid leave to get a COVID-19 vaccination. It also supports small businesses that have been hit hard economically by the pandemic.
“As we continue to recover from both the health and economic impact of COVID-19, it’s critical we support families and small businesses that are struggling. This tax credit will boost small businesses that are trying to help their employees and allow workers to take care of their health. By helping small companies give employees time off to get their COVID-19 shot, the tax credit will also boost vaccinated rates. It’s a win-win and I encourage all our local small businesses to tax advantage of this important tax credit.”
The American Rescue Plan established an advanceable, refundable tax credit that allows businesses with fewer than 500 employees to receive up to $17,110 per employee to give them up to 10 days of paid sick leave and up to 12 weeks of paid family leave through September 30, 2021. This credit is eligible to about 6 million businesses and more than 40 million workers. More information on how businesses can claim that credit here.