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Congresswoman Joyce Beatty

Representing the 3rd District of Ohio

Critical Tax Credit Covering Cost of Paid Leave for Small Businesses Extended

Jun 16, 2021
Press Release

COLUMBUS, OH—U.S. Congresswoman Joyce Beatty (OH-03) is highlighting the Internal Revenue Service’s (IRS) recent announcement that the Paid Leave Tax Credit to help local small businesses cover the costs of providing paid sick and family leave for workers is extended through September. The extension was made possible by the American Rescue Plan, P.L. 117-2, a comprehensive COVID-19 relief bill Beatty helped pass in Congress

“Small businesses in Ohio’s Third Congressional District and beyond were hit especially hard by the COVID-19 Pandemic, forcing many employees to take time off of work because of health-related issues,” Beatty noted. “The Paid Leave Tax Credit will help our community crush the virus and also grow our economy by keeping paychecks in pockets, businesses open, and workers safe.”

As a result of the American Rescue Plan, employers with fewer than 500 employees can receive up to $17,110 per employee to provide up to 10 days of paid sick leave and up to 12 weeks of paid family leave (from April 1 through September 30, 2021). Moreover, certain self-employed individuals are entitled to similar credits, as are schools, public hospitals, and other state and local government employers.  

Roughly six million businesses and over 30 million workers are eligible for the Paid Leave Tax Credit. In addition to using leave to care for family members or themselves, workers can utilize the tax credit to get their COVID vaccinations and to recover from any temporary side effects. 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.

Businesses can find instruction on claiming the Paid Leave Tax Credit on the IRS website.