Vaccination and Recovery Paid Leave Credit 

Under the American Rescue Plan Act (ARP), the IRS has updated their paid sick and family leave tax credit information. Employers can claim the credits for providing paid leave to employees who accompany a family or household member to obtain a COVID-19 vaccination or to care for them during their recovery from said vaccination. The credits reimburse employers for the cost of the paid sick and family leave for COVID-19 related reasons through September 30, 2021.

Highway Use Deadline for Heavy Vehicle Owners

The IRS reminds those registering large trucks and buses that the deadline to file Tax Year 2021 Form 2290, Heavy Highway Vehicle Use Tax Return is August 31, 2021 for vehicles used on the road during July of this year. The highway use tax applies to vehicles with a taxable gross weight of 55,000 pounds or more. The IRS has an online tool to help owners determine if they are required to file. 

Relief and Guidance for Employers

• Employers claiming the Work Opportunity Tax Credit (WOTC) have longer to certify that an employee hired is a Designated Community Resident or Qualified Summer Youth Employee. The WOTC is a tax credit available to employers who hire certified members of specific groups identified in the code who face barriers to employment.
• Guidance has been issued regarding the Employee Retention Credit (ERC). The ARP has made the credit available to eligible employers that pay qualified wages from July through December 2021, and various questions posed to the IRS and treasury have been addressed.
• Certain items may be excluded from gross receipts when determining eligibility for the ERC. This safe harbor applies to Paycheck Protection Program (PPP) Loan forgiveness amounts, as well as shuttered venue and restaurant grants under the ARP.