The IRS recently issued new FAQs regarding tax credits available to employers with fewer than 500 employees, as well as certain governmental employers with any number of employees, for qualified sick and family leave wages taken by employees starting April 1 under the American Rescue Plan Act.
The mandate for paid leave under the Families First Coronavirus Response Act expired in 2020, but employer tax credits still are available for paid leave between April 1 and Sept. 30. FAQ topics include claiming the credits, defining an eligible employer and determining the amount of allocable qualified health plan expenses.
For information about the tax credits that can be claimed for qualified leave wages paid regarding leave taken by employees before April 1, see FAQs for Tax Credits for Paid Leave Under the Families First Coronavirus Response Act for Leave Prior to April 1, 2021.
