An update to the IRS Frequently Asked Questions (FAQs) on paid sick and family leave credits contained in the American Rescue Plan Act of 2021, expands the credit to include leave given to accompany a family or household member, or certain other individuals to obtain COVID-19 immunization or to care for a family member recovering from COVID-19 immunization.
“Individual” refers to an immediate family member, someone regularly residing in the employee’s home, or a similar person who the employee would be expected to care for. This does not include people with whom the employee has had no personal relationship with.
An eligible employer may claim a fully refundable tax credit equal to 100% of the qualified wages (plus appropriate qualified health plan expenses, certain collectively bargained contributions, and the employer’s share of social security and Medicare taxes imposed on the qualified wages). The maximum amount of qualified wages that are eligible for the credit is $200 per day and $12,000 total.