Bennie Thompson announces tax credit will help small businesses through September
BOLTON, Miss. (WLBT) - Congressman Bennie Thompson 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 and take time off 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.
“Small businesses were hit especially hard by the pandemic,” said Thompson.
“This tax credit will help our community crush this virus and grow our economy by keeping paychecks in pockets, businesses open and workers safe.”
Thanks to the American Rescue Plan Congressman Bennie Thompson 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.
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