On July 29, the Treasury Department and the IRS posted the new guidance on the paid-leave tax in updated FAQs on the IRS website. The new guidance "gives employers further opportunity to support the health and safety of their employees' families and communities without placing an undue burden on their business during the pandemic," according to a Treasury Department announcement.
The updates clarify that eligible employers can claim the tax credits for providing leave to employees:
- To accompany a family or household member or certain other individuals to obtain immunization relating to COVID-19.
- To care for a family or household member or certain other individuals recovering from the immunization.
Who are these "family or household member or certain other individuals"?
- An immediate family member.
- Someone who regularly resides in the employee's home.
- A similar person with whom the employee has a relationship that creates an expectation that the employee would care for the person.
The FAQs also include information on how eligible employers may claim the paid sick and family leave credits, including how to file for and compute the applicable credit amounts and how to receive advance payments for and refunds of the credits.