What Is Self-Employment Tax?
Self-employed individuals are subject to different challenges when it comes to taxes. Staying diligent and keeping accurate records can go a long way in easing the frustration.
According to President Biden's recent announcement, you can now take time off of work to get the COVID-19 vaccine and extra time for recovery without worrying!
President Joe Biden announced a paid-leave tax credit for employers that provide full pay for employees who take time off to get and recover from a COVID-19 vaccination. The tax credit for vaccination and recovery aims to encourage people reluctant to get the COVID-19 vaccine because of concerns around time off work.
The tax credit is for small and medium-sized businesses with fewer than 500 employees and is part of the $1.9 trillion COVID stimulus plan signed into law in March.
According to a statement from the White House, “the paid-leave tax credit that President Biden signed into law in the American Rescue Plan ensures that no small businesses or nonprofits will lose a single dollar by providing such paid leave to workers receiving a vaccination.”
The tax credit covers paid leave up to $511 per day per employee vaccinated for up to ten workdays, or 80 work hours, through September. The tax credit is fully refundable and is applied to the employer’s share of Medicare tax. Because the tax credit is fully refundable and is a dollar-for-dollar tax credit, eligible businesses will receive a tax credit back that is the exact amount you paid to employees for the vaccination and recovery leave.
Employers can claim the credit by reporting the cost of the paid wages for vaccinations or recovery time quarterly on their Form 941.
Self-employed individuals are subject to different challenges when it comes to taxes. Staying diligent and keeping accurate records can go a long way in easing the frustration.
Are you starting a new business? Have you thought about where you would like to start a business? Learn more about the best small cities to start a business.
Your filing status is perhaps the most important piece of information when it comes to tax withholding. Learn which filing status applies to you.