Tax credit to cover paid leave for small businesses extended through September

Local

JACKSON, Miss. (WJTV) – The Internal Revenue Service (IRS) will continue to provide tax credits to help local small businesses cover the costs of providing paid sick and family leave for workers through September 2021, according to U.S. Rep. Bennie Thompson (D-Miss.).

Along with using the leave to care for themselves and family who are sick, workers can also use leave to get their COVID-19 vaccinations and take time off to recover from any temporary side effects from the shot.

“Small businesses were hit especially hard by the pandemic,” said Thompson. “This tax credit will help our community crush this virus and grow our economy by keeping paychecks in pockets, businesses open and workers safe.”

Employers with fewer than 500 employees may receive up to $17,110 per employee to provide employees with up to 10 days of paid sick leave and up to 12 weeks of paid family leave, from April 1 through September 30, 2021. Certain self-employed individuals in similar circumstances are entitled to similar credits as are schools, public hospitals and other state and local government employers.

Businesses can access the advanceable, refundable tax credit in real-time by reducing their amounts they set-aside to pay payroll taxes and employee withholding, and then claim any excess on their quarterly tax filings or request for an advance payment from the IRS.

Businesses can find instructions for how to claim their credit here.

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