Maloney Announces Extension of Tax Credit to Cover Small Business Costs of COVID-19 Paid Leave

Jun 14, 2021
Press Release
Workers Can Use Leave to Get Vaccinated

WASHINGTON, DC – Congresswoman Carolyn B. Maloney (D-NY) announced today that the IRS will continue to provide tax credits to help New York City small businesses cover the costs of providing paid sick and family leave for workers through the end of 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.

“New York City’s small businesses felt the brunt of the pandemic, struggling to keep employees on payroll and their doors open,” said Rep. Maloney. “This tax credit has, and will continue to keep paychecks in pockets, businesses open, and workers safe.”

Thanks to the American Rescue Plan that Congresswoman Maloney 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 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 the amounts they set aside to pay 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.

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

Background

In January, Congresswoman Maloney introduced H.R.564, the Comprehensive Paid Leave for Federal Employees Act.

The Comprehensive Paid Leave for Federal Employees Act will give all federal employees up to 12 weeks paid leave for any 12-month period for one or any combination of the following reasons:

  • To care for an ill spouse, child, or parent;
  • To care for a serious personal medical condition; or
  • Any qualifying circumstance resulting from a spouse, child, or parent who is designated or soon to be designated to be active duty military.

As part of the National Defense Authorization Act for FY 2020, Congress passed landmark legislation first introduced by Chairwoman Maloney that guaranteed paid parental leave to the 2.1 million employees of the federal government. The policy was implemented on October 1, 2020.

Currently, under the Family and Medical Leave Act, federal employees may take up to 12 weeks of unpaid leave for reasons relating to personal illness, illness of a family member, or military deployment.

The U.S. federal government is the largest employer in the nation and should be leading when it comes to family-friendly work policies.

 

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