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Credit for Employee for sick pay?

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    Credit for Employee for sick pay?

    Is there a tax credit for the employee for sick pay? I was reviewing the client handout The American Rescue Plan Act of 2021, page 2 says “The new law reinstates the $511/$200 per day 100% refund- able payroll tax credit for employees who receive paid sick leave or paid family leave for reasons related to COVID-19. The new law modifies the reasons for these payments.” I always thought the credit was for the Employer.

    #2
    Many businesses that have been hard hit by coronavirus (COVID-19) will qualify for two new employer tax credits – the Credit for Sick and Family Leave and the Employee Retention Credit.


    Employee does NOT get any special tax credit unless they are considered self-employed. Check the Irs link.
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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