Congressman Tim Ryan Announces Extension of Tax Credit for Small Business Who Provide Paid Family Leave | Congressman Tim Ryan
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Congressman Tim Ryan Announces Extension of Tax Credit for Small Business Who Provide Paid Family Leave

June 14, 2021
Press Release
Businesses May Receive More than $17k/Employee; Workers Can Use Leave to Get Vaccinated

Washington, DC – Congressman Tim Ryan (OH-13) today 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. Thanks to the American Rescue Plan that House and Senate Democrats passed, which was signed into law by President Joe Biden, 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.  

“Hardworking people in Ohio have really taken it on the chin throughout this pandemic, but because of the American Rescue Plan Act, we’re going to make sure everyone is safe as they get back to work,” said Congressman Tim Ryan. “I’m proud that this tax credit is going to help 6 million businesses across the country and more than 30 million workers as we crush this virus and get our economy back up and running.”

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.

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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