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 </figure>IRSWASHINGTON&nbsp;—&nbsp;The Internal Revenue Service and the Treasury Department
 announced today further details of tax credits available under the 
American Rescue Plan to help small businesses, including providing paid 
leave for employees receiving COVID-19 vaccinations.The additional details, provided in a fact sheet released today, 
spell out some basic facts about the employers eligible for the tax 
credits. It also provides information on how these employers may claim 
the credit for leave paid to employees related to COVID-19 vaccinationsEligible employers, such as businesses and tax-exempt organizations 
with fewer than 500 employees and certain governmental employers, can 
receive a tax credit for providing paid time off for each employee 
receiving the vaccine and for any time needed to recover from the 
vaccine. For example, if an eligible employer offers employees a paid 
day off in order to get vaccinated, the employer can receive a tax 
credit equal to the wages paid to employees for that day (up to certain 
limits)."This new information is a shot in the arm for struggling small 
employers who are working hard to keep their businesses going while also
 watching out for the health of their employees," said IRS Commissioner 
Chuck Rettig. "Our work on this issue is part of a larger effort by the 
IRS to assist the nation recover from the pandemic."The American Rescue Plan Act of 2021 (ARP) allows small and midsize 
employers, and certain governmental employers, to claim refundable tax 
credits that reimburse them for the cost of providing paid sick and 
family leave to their employees due to COVID-19, including leave taken 
by employees to receive or recover from COVID-19 vaccinations. 
Self-employed individuals are eligible for similar tax credits.The ARP tax credits are available to eligible employers that pay sick
 and family leave for leave from April 1, 2021, through Sept. 30, 2021.The paid leave credits under the ARP are tax credits against the 
employer's share of the Medicare tax. The tax credits are refundable, 
which means that the employer is entitled to payment of the full amount 
of the credits if it exceeds the employer's share of the Medicare tax.In anticipation of claiming the credits on the <a href="https://www.irs.gov/pub/irs-pdf/f941.pdf">Form 941, Employer's Quarterly Federal Tax Return&nbsp;PDF</a>,
 eligible employers can keep the federal employment taxes that they 
otherwise would have deposited, including federal income tax withheld 
from employees, the employees' share of social security and Medicare 
taxes and the eligible employer's share of social security and Medicare 
taxes with respect to all employees up to the amount of credit for which
 they are eligible. If the eligible employer does not have enough 
federal employment taxes on deposit to cover the amount of the 
anticipated credits, the eligible employer may request an advance by 
filing Form 7200, Advance Payment of Employer Credits Due to COVID-19.Self-employed individuals may claim comparable credits on the <a href="https://www.irs.gov/pub/irs-pdf/f1040.pdf">Form 1040, U.S. Individual Income Tax Return&nbsp;PDF</a>.More details are available on <a href="https://www.irs.gov/newsroom/employer-tax-credits-for-employee-paid-leave-due-to-covid-19">this fact sheet</a>.

IRS: Tax credit will allow small employers to offer paid 'vaccine leave'