Levin Advocated to Secure Tax Credit through September in the American Rescue Plan
WARREN, MI – Today Congressman Andy Levin (MI-09) announced that the 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. 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. Research has shown that states where employees gained access to paid sick leave through this tax credit experienced a slow-down in the spread of COVID.
"The mass vaccination campaign spurred by the American Rescue Plan has greatly decreased the spread of COVID-19, but we can't let up on our efforts until everyone is fully vaccinated," said Rep. Levin. "Small businesses should not have to choose between staying open and allowing their workers time to get vaccinated and to recover. With this extension of this tax credit, Congress is ensuring the health of American workers and protecting the businesses that contribute so much to our communities."
Thanks to the American Rescue Plan Rep. Levin helped pass, 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 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 the amounts they set aside for payroll taxes and employee withholding, and then claim any excess on their quarterly tax filings or request an advance payment from the IRS.
Roughly 6 million businesses and more than 30 million workers are eligible for this credit.
Source:https://andylevin.house.gov/media/press-releases/levin-announces-tax-credit-extension-cover-cost-paid-leave-small-businesses
