Rep. Cleaver Highlights Tax Credit For Small Businesses to Cover Cost of Paid Leave Has Been Extended Through September
(Washington, D.C.) – Today, U.S. Representative Emanuel Cleaver, II (D-MO) highlighted the Internal Revenue Service (IRS) will continue to provide tax credits to help Missouri small businesses cover the costs of providing paid sick and family leave for workers through September 2021. In addition to using the leave to care for themselves and family members who are sick, workers can also use paid leave to get their COVID-19 vaccinations and recover from any temporary side effects from the shot. Recent research has found that states where employees gained access to paid sick leave through tax credits experienced a drop in COVID cases.
“Small businesses throughout Missouri are still recovering from the fallout of the COVID-19 pandemic—and this tax credit will certainly help to accelerate that effort,” said Congressman Cleaver. “By providing small businesses the financial support needed to ensure workers have time to get themselves and their family vaccinated, we can continue to crush COVID in our communities, keep money in the pockets of working class families, and help businesses stay open. Those were the goals of the American Rescue Plan, and why I was proud to support the historic legislation.”
Thanks to the American Rescue plan Rep. Cleaver 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. Roughly 6 million businesses and more than 30 million workers are eligible for the credit.
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 filing or request for an advance payment from the IRS.
Official instructions from the IRS for how to claim this credit can be found here.
Emanuel Cleaver, II is the U.S. Representative for Missouri's Fifth Congressional District, which includes Kansas City, Independence, Lee's Summit, Raytown, Grandview, Sugar Creek, Blue Springs, Grain Valley, Oak Grove, North Kansas City, Gladstone, Claycomo, and all of Ray, Lafayette, and Saline Counties. He is a member of the exclusive House Financial Services Committee; Chairman of the House Subcommittee on Housing, Community Development, and Insurance; member of the Select Committee on the Modernization of Congress; member of the Committee on Homeland Security; and a Senior Whip of the Democratic Caucus. A high-resolution photo of Congressman Cleaver is available here.