The IRS posted two new sets of FAQs to address the tax credits available under the American Rescue Plan Act of 2021 (the “ARP”) by employers with fewer than 500 employees and certain governmental employers without regard to the number of employees (“Eligible Employers”) for qualified sick and family leave wages (“qualified leave wages”) paid with respect to leave taken by employees beginning on April 1, 2021, through September 30, 2021, as well as the equivalent credits available for certain self-employed individuals.
Frequently Asked Questions:
Overview
General Information
What is an Eligible Employer?
Determining the Amount of the Tax Credit for Qualified Sick Leave Wages
Determining the Amount of the Tax Credit for Qualified Family Leave Wages
Determining the Amount of Allocable Qualified Health Plan Expenses
Determining the Amount of Allocable Collectively Bargained Contributions
How to Claim the Credits
How Should an Eligible Employer Substantiate Eligibility for Tax Credits for Qualified Leave Wages?
Periods of Time for Which Credits are Available
Special Issues for Employers: Taxation and Deductibility of Tax Credits
Special Issues for Employers: Interaction of the American Rescue Plan Act of 2021 Tax Credits with Other Tax Credits
Special Issues for Employers: Use of Third-Party Payers
Special Issues for Employers: Other Issues
Special Issues for Employees
Specific Provisions Related to Self-Employed Individuals
Where can I get more information?
COVID-19-Related Tax Credits for Paid Sick and Paid Family Leave: Overview
Coronavirus Tax Relief
Department of Labor’s COVID-19 and the American Workplace