Vigilant Blog

News, trends and analysis in employment law, HR, safety & workers' comp

Aug 19, 2021

IRS again updates FAQs for paid leave tax credits under ARPA


On July 29, 2021, the IRS updated its FAQs that address tax credits available to eligible employers who voluntarily provide paid leave under the Families First Coronavirus Response Act (FFCRA) between April 1, and September 30, 2021, pursuant to the American Rescue Plan Act of 2021 (ARPA). As we previously reported, ARPA extended the optional FFCRA tax credits through September 30, 2021. Newly revised FAQs 8 and 9 make it clear an eligible employer can claim tax credits under ARPA for providing paid leave to an employee for accompanying a family or household member or certain other individuals to obtain the COVID-19 vaccine or caring for them while they recover from conditions related to obtaining the COVID-19 vaccine.

Tips: We’ve updated our Model Policy, Families First Coronavirus Response Act Policy, and Model Form, Families First Coronavirus Response Act Leave Request Form, to incorporate the IRS’s expanded interpretation of authorized reasons for FFCRA paid leave. For specific questions related to these tax credits, consult with your tax adviser.

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