Crow Helps Extend Tax Credit to Cover Cost of Paid Leave for Colorado Small Businesses Through End Of September

June 16, 2021
Press Release

Workers Can Use Leave to Get Vaccinated

Crow Helped Secure Tax Credit through September in the American Rescue Plan 

WASHINGTON – Today, Congressman Jason Crow (CO-06) announced 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. Along with using the leave to care for themselves and family who are sick, workers can also use leave to get their COVID vaccinations or 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.

“Small businesses are the backbone of our community, and unfortunately some of the hardest hit by the pandemic,” Congressman Jason Crow said. “This tax credit will help our community beat this virus once and for all and grow our economy by keeping paychecks in pockets, businesses open, and workers and communities safe.”

Thanks to the American Rescue Plan Congressman Crow helped pass, 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.