Killer Tax Saving Strategies from Covid

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The Delta variant continues to put Americans at risk, and the government is highly encouraging all employers to mandate the vaccine. While the mandate itself is controversial and a matter of personal opinion, there are ways you can help your employees without mandating the vaccine.

The federal government offers assistance to employers that provide their employees with time off to get vaccinated and to deal with any side effect, which can be a day or two of flu-like symptoms.

Employers aren’t required by law to give employees time off to care for themselves or a loved one who recently got vaccinated, but they provide generous tax credits for employers who offer it to make up for the lost work time.

The credits apply whether an employee herself got vaccinated or a family member did, since there are benefits of an entire family getting vaccinated too, as it stops the spread in your workplace with asymptomatic carriers.

The tax credit is only good through September 30, 2021, so act fast.

What tax credits does the IRS offer?

  • If you give your employees paid time off to get vaccinated and/or deal with the side effects of the vaccine, you’re eligible for a tax credit of $511 per day for up to 10 days. In addition, you can get a $200 per day tax credit for 60 more days for a family leave credit.
  • If you give your employees paid time off to care for household members who got vaccinated and/or have side effects from it, you can get a $200 tax credit per day for up to 10 days (sick credit) and up to 60 days (family leave credit).
  • The tax credit even includes the self-employed. If you get vaccinated and have to take time off work to get it and/or recover, you are eligible for similar tax credits. This includes if you must take time off to care for family members.

Here’s even better news.

The tax credit is refundable. This means even if your tax liability is less than your credit, you can receive the difference. You’ll need to complete IRS Form 7200, Advance Payment of Employer Credits Due to COVID-19 to get it, though.

Don’t worry – the paperwork to get the credit isn’t overwhelming. It’s a couple of sheets of paper that will take just a couple extra minutes to complete and put more money in your pocket and reduce the risk of spreading COVID-19 through your company.

If you have any questions or need help completing the forms to get your tax credit, contact us today at 714-383-2307!