Small Business Owners Can Get a Tax Credit for Offering Employees Paid Time Off for COVID-19 Vaccination
The return to in-person office work may or may not be a welcome change of pace. Shooting the breeze in the break room with your colleagues during your lunch break beats responding to your children’s endless snack requests as they attend remote classes, but no one misses rush hour traffic or wearing their work shoes all day long. Even if you consider the glitches and the unflattering camera angles of Zoom a small price to pay for getting to wear sweat pants at work while your cat purrs on your lap, you almost certainly miss indoor social gatherings at restaurants and bars and recreational shopping for something other than groceries. If you are the owner of a restaurant, nail salon, or other small business for which in-person interaction is essential, then you have probably been eager to get back to in-person work since the pandemic started. The federal government is offering a tax credit to encourage people who can’t afford to miss another day of work to get vaccinated against COVID-19, and to encourage business owners to offer their employees paid time off to do so. To find out more about making the most of tax credits and other incentives available to small business owners, contact an Alabama small business lawyer.
The American Rescue Plan Tax Credit for Paid Leave for Vaccine Recipients
Small businesses provide half of the private sector jobs in the United States; it is no exaggeration to say that they are the backbone of our economy. Therefore, keeping them operational and preventing future COVID-19 surges big enough to require additional stay-at-home orders is essential for our economic recovery. At the small business level, every dollar counts; for business owners, tax credits can make or break whether the business can continue to operate for another year, and for employees, missing a single shift of work can mean falling behind on household bills.
One of the provisions of the American Rescue Plan is a tax credit for small businesses that provide paid time off for the days that workers spend getting the COVID-19 vaccine and recovering from the side effects, if any. (Most people who get the vaccine do not experience side effects severe enough to make them miss work, but some experience fever and flu-like symptoms. Severe side effects and adverse reactions are very rare.) The maximum tax credit a business can claim is $511 per day, for up to ten days. Since the vaccines currently being offered in the U.S. require two doses, it makes sense for employers to give more than one day of paid leave for vaccinations. In other words, you can save thousands of dollars on taxes by giving your employees paid time off for getting vaccinated against COVID-19.
Let Us Help You Today
It is in everyone’s interest for small businesses in Alabama to thrive without creating unnecessary risk of COVID-19 exposure. An Alabama business & corporate litigation attorney can help you make the most of the tax credits for which your small business is eligible. Contact Cloud Willis & Ellis for a consultation on your case.