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Rep. Susie Lee Announces Tax Credit to Cover Cost of Paid Leave for Small Businesses is Extended Through September

June 14, 2021

Rep. Susie Lee Helped Secure Extension in the American Rescue Plan

WASHINGTON – Rep. Susie Lee announced today that the IRS will continue to provide tax credits to help local small businesses cover the costs of providing paid sick and family leave for workers through September. Workers can use these paid leave opportunities to care for themselves, to care for family members who are sick, or to get vaccinated and take time off to recover from any temporary side effects from the shot. Research has shown that states where employees gained access to paid sick leave through this tax credit experienced a slow-down in the spread of COVID-19.

"Small businesses are the lifeblood of our communities, yet they were nearly devastated during the pandemic and some did not survive. For those that did, we are doing everything we can to make sure they keep their doors open," said Rep. Susie Lee. "The extension of this tax credit gives small businesses more breathing room to rebuild their business, while keeping their employees safe."

This past March, Rep. Susie Lee helped pass the American Rescue Plan which included provisions and funding to maintain this program. Now through September, employers with fewer than 500 employees may receive up to $17,110 per employee to provide employees with up to 10 days of paid sick leave and up to 12 weeks of paid family leave, from April 1 through September 30, 2021. Certain self-employed individuals in similar circumstances are entitled to similar credits as are schools, public hospitals and other state and local government employers.

Businesses can access the advanceable, refundable tax credit in real-time by reducing their amounts they set-aside to pay payroll taxes and employee withholding, and then claim any excess on their quarterly tax filings or request for an advance payment from the IRS. Roughly 6 million businesses and more than 30 million workers are eligible for this credit.

Businesses can find instructions for how to claim their credit HERE.