Your Business May Be Eligible For Vaccination PTO Tax Credits
When many lost their jobs during the coronavirus pandemic or struggled to keep their businesses afloat, the PPP loan was created and passed. The Paycheck Protection Program (PPP) provided a financial safety net for small businesses across the country impacted by COVID-19. The program successfully pulled many small companies out of debt or at least helped keep them up and running.
And now that the pandemic is (finally) coming to an end, new PTO tax credits has been passed called the “Paid Leave Credit.” This credit works by giving qualifying business owners a tax credit for the daily pay of any employee who took time off work for COVID-19 related reasons. This will cover any time off through September 30, 2021, up to $511 per day per employee.
What Is The Purpose Of This Credit?
The purpose of this credit is to continue helping small businesses that COVID-19 has negatively impacted. When restrictions began to lift, many companies re-opened but struggled to find employees or pay their staff. Now that many are now getting back on their feet, this is a way to continue helping them stay open. Paying an employee for a full day (or multiple days) of PTO can severely impact small businesses if they are already struggling financially. The credit even covers PTO taken for an employee to receive their vaccines.
What Businesses Qualify?
To qualify for the PTO tax credit, businesses must prove that they meet the standards set by the government through the American Rescue Plan. To qualify, your business must:
- Have 500 or fewer employees.
- Be currently operating for business.
- Voluntarily provide PTO for specific COVID-19-related reasons.
How Will This Affect COVID-19?
Not only will this tax credit positively impact small businesses financially, but it will also help to increase the number of vaccinated citizens across the country. For many, it may be hard to find time off of work to get the vaccine, let alone find time 2 or 3 weeks later to get another. With this said, this vaccination PTO tax credit is yet another way to promote the vaccine and make it easier for your employees to get one.
Work With Taurus CPA Solutions
If you have any questions about PTO tax credits, do not be afraid to ask. This is new for everyone, and the more information we can gather, the better we can understand how it works and how it will continue to affect small businesses.
If your business needs assistance in tax preparation, Taurus CPA Solutions has got you covered. Our services are targeted toward small business owners, and we offer a wide range of financial services to keep your business running.