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Dingell Announces Tax Credit to Cover Cost of Paid Leave for Small Businesses Extended Through September

30+ Million Workers are Eligible, Can Use Leave to Get Vaccinated

WASHINGTON, DC - Today, Congresswoman Debbie Dingell (MI-12) announced that 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. Along with using the leave to care for themselves and family who are sick, workers can also use leave to get their COVID 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.

“Small businesses are a huge part of our communities and our economy, and we need to help them rebuild and succeed as our communities reopen,” said Rep. Dingell. “This tax credit will help our small businesses reopen safely while also supporting their workers with critical resources and paid leave. Continued relief for small businesses will boost our economy and ensure workers can provide for their families.”

This tax credit, established by the American Rescue Plan which Dingell helped pass, provides employers with fewer than 500 employees up to $17,110 per employee so that employees can use 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.

Roughly 6 million businesses and more than 30 million workers are eligible for this credit.

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


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