Federal Tax Credits for COVID Have Ended
The Federal program that enabled employers to take a tax credit for paying employees who were absent for COVID-related reasons ended on September 30. There is no more so-called “COVID pay” as we have processed for many of our clients for the last year and a half.
COVID Sick Leave for Massachusetts Employers
A different program is available to Massachusetts employers. Massachusetts has updated its COVID sick leave law to extend the deadline and expand the reasons for leave. As before, the law applies to all employers and entitles employees to paid leave when they can’t work for certain COVID-related reasons. Employers can seek reimbursement for money paid to employees for COVID sick leave. This means that you have to apply for reimbursement; it does not go through payroll.
Previously, the law was set to expire on September 30 or when the state fund is exhausted, whichever is earlier. Now the date is April 1, 2022 or when the fund is exhausted (still whichever is sooner). As of October 1, 2021, employees can also use their COVID sick leave to care for a family member who is either getting vaccinated against COVID or recovering from vaccination side effects.
Read the letter sent by the MA DUA, which has links to the law and detailed instructions for how to apply for reimbursement.