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  • Writer's pictureJim Nardello CPA

COVID-19 Sick Pay Tax Credit

To all of our small or midsize employers (less than 500 employees), if you have paid sick or family leave related to the corona virus, then you may be eligible for tax credits for those wages paid. The Families First Coronavirus Response Act made it mandatory that employers pay sick or family leave pay to employees experiencing one of the six situations listed below. If an employee has been unable to work during the period of April 1, 2020 to December 31,2020 due to one of the COVID-19 related reasons listed below, you are required to pay him/her sick leave for up to 80 hours, and you may also qualify for a tax credit for those 80 hours of wages. Please call us if one or more of your employees has been unable to work due to one of the following reasons and we can discuss your eligibility and tentative tax credit. For more information please visit the following IRS article https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-paid-sick-and-paid-family-leave-overview


  1. The employee is under a Federal, State, or local quarantine or isolation order related to COVID-19;

  2. The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;

  3. The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis;

  4. The employee is caring for an individual who is subject to a Federal, State, or local quarantine or isolation order related to COVID-19, or has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;

  5. The employee is caring for the child of such employee if the school or place of care of the child has been closed, or the child care provider of such child is unavailable, due to COVID–19 precautions;

  6. The employee is experiencing any other substantially similar condition specified by the U.S. Department of Health and Human Services.

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