White House Announces Tax Credit for Small Businesses that Provide PTO for Vaccinations

To encourage more widespread vaccinations, President Joe Biden has announced a paid leave tax credit to employers that provide full pay for any employee who takes time off to get a COVID-19 vaccination. The tax credit is available to organizations with fewer than 500 employees, and it also provides full pay for employees who take time to recover from the vaccination. The credit covers up to $511 per day for each vaccinated employee, and is funded by the American Rescue Plan.

Administration officials cited talks with businesses along with polling that showed employees would be highly persuaded to get vaccinated if their employers provided access to a shot. According to recent Society for Human Resource Management (SHRM) research, 11 percent of employed Americans say that they would consider getting the vaccine if their employer offered up to $150, and 21 percent would consider getting the vaccine if offered more than $150.

The White House is asking employers to fill out this form to share how they are stepping up to support COVID-19 vaccinations. The Internal Revenue Service will release and post a fact sheet today to educate employers on how to claim the paid sick leave credit on their quarterly tax filings.