Companies To Get Tax Credit For COVID-19 Vaccine Paid Time Off

US President Joe Biden has announced the provision of a paid leave tax credit for certain businesses whose workers take time off to get vaccinated. This comes as an effort to boost inoculations for Americans with a goal to achieve 200 million vaccine shots by Wednesday to culminate his first 100 days in office.

Biden feels confident this goal will see through a new phase of a vaccine campaign whereby businesses are urged to allow easy vaccination access to its employees. Administration officials cited the move will highly persuade American employees to get their jabs if their employers made it easier for them to receive the shot and recover from the vaccine’s side effects.

Research conducted by the Society for Human Resource Management (SHRM) stated, 21% of employed Americans would consider lining up for the Covid-19 shot if their employers offered more than $150. About a third of the nation’s smallest companies, such as those with fewer than 50 employees, do not have access to paid sick leave.

To make an even sweeter deal, the incentive also provides full pay for employees who need to take time to recover from the vaccination. The tax credit, which is funded by the American Rescue Plan, covers up to $511 per day for each employee that has been vaccinated.

The government plans to reimburse companies for the cost of giving their workers as much as 80 hours in paid time off.

According to Bloomberg, US employers have been touted the incentive in light of the Covid-19 aid package where it provided tax credits for worker’s wages in companies with less than 500 employees.

“I’m calling on every employer -- large and small, in every state -- to give employees the time off they need, with pay, to get vaccinated,” Biden said.

The Internal Revenue Service has published details on the tax-credit plan stating that employers can claim the credits from April 1 through Sept. 30. They will release and post a fact sheet to inform employers on how to claim the paid sick leave credit on their quarterly tax filings.

As the Biden administration shifted its public focus from vaccine supplies to persuading Americans to get shots, officials have expressed concern on the possibilities of not being able to control the virus if a sizable part of the US population fails or refuses to get inoculated.

He said 90% of Americans can avail of the vaccine within 5 miles of where they live.