Harder Announces Tax Credit to Cover Paid Leave for Small Businesses Extended

June 15, 2021
Press Release
Credit provides more than $17,000 per employee

WASHINGTON — Today, Representative Josh Harder (CA-10) announced that the IRS will continue to provide tax credits of up to $17,110 per employee 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 paid leave to get their COVID vaccinations and take time off to recover from any temporary side effects from the shot.


“I’ve talked to so many Central Valley business owners and workers who got just crushed by this pandemic. We need to do everything we can to support them until they and their families are fully recovered,” said Rep. Harder. “This tax credit will help our local economy by keeping our businesses open, our workers safe, and our families meeting their bottom lines each month.”


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


Thanks to the American Rescue Plan Rep. Harder helped pass earlier this year, 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.