The Treasury Department and Internal Revenue Service yesterday clarified that the paid leave provided for in the American Rescue Plan Act (ARPA) applies to employees seeking time off to obtain or to recover from a COVID-19 vaccine. ARPA allows businesses with fewer than 500 employees to voluntarily offer federally funded sick and family leave if related to coronavirus illness, exposure or child care. A dealership that offers such leave may take a credit against its share of employee payroll taxes through September 30, 2021. Federally funded coronavirus-related leave is limited to 80 hours for the second and third quarters of 2021 and is capped at $511/day ($5,110 total) per employee for sick leave and $200/day ($2,000 total) per employee for family leave.
For more information, see Treasury’s fact sheet and visit NADA’s Coronavirus Hub. As always, dealers should discuss these issues with their attorneys and financial advisors.