Some small organizations and non-profit companies can claim a “paid leave tax credit” to completely offset the costs of providing paid sick leave to employees getting a COVID-19 vaccine and recovering from the after-effects of vaccination, President Joe Biden revealed Wednesday.
Eligible companies can declare the tax credit by keeping the pertinent amount from the federal work taxes they would have otherwise transferred, the IRS recommends.
How to declare the COVID-19 vaccine tax credit
The Treasury explains: “Businesses that pay staff members for certifying leave can take the tax credit versus their share of particular payroll taxes.
Organizations who don’t have sufficient federal work taxes set aside to cover the paid sick and family leave, “plus the qualified health plan expenses and jointly haggled contributions and the qualified employer’s share of social security and Medicare taxes on the paid leave incomes,” may request an advance of the credits by sending Type 7200 (Advance Payment of Employer Credits Due to COVID-19), the Internal Revenue Service encourages.
Those who are self-employed “may declare similar tax credits” on their individual tax return ( Kind 1040), the IRS includes.
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