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Federal Small Business Tax Credits for Vaccine Paid Time Off
Businesses with 500 employees or fewer can claim a refundable federal tax credit for giving their employees paid time off to get the COVID vaccine or to recover from side effects. The American Rescue Plan extended the paid COVID leave tax credit to cover time off for vaccination.

According to guidance from the U.S. Treasury, small businesses may claim the employee’s regular wage, up to $511 per day, for time taken off due to the employee being sick, quarantining, awaiting COVID test results, receiving the COVID vaccine, or recovering from vaccine effects. 
 
Small businesses will claim the credit on their Form 941 quarterly employment federal tax return. Businesses may keep the tax they expect to be credited back to them in advance of filing the Form 941. In the event that the credit exceeds the businesses’ employment tax liability, the additional value will be refunded to the business by the U.S. Government.
Governor Ralph Northam has announced sports and entertainment venue and social gathering capacities will increase beginning Saturday, May 15:
  • Social gathering limits will increase to 100 people indoors and 250 people outdoors (currently, 50 and 100, respectively).
  • Indoor entertainment and public amusement venues will be able to operate at 50% capacity or 1,000 people, up from previous 30% capacity or 500 people. Outdoor venues will be able to operate at 50% capacity with no specific cap on attendees, up from previous 30%.
  • The number of spectators allowed at indoor recreational sporting events will increase to 250 spectators or 50% capacity, whichever is fewer. Outdoor recreational sporting events will increase to 1,000 people or 50% capacity, whichever is fewer. 
  • Restaurants will be able to return to selling alcohol after midnight. Restaurants will no longer be required to close their dining rooms from midnight to 5:00 a.m.
The Chamber is here to support our members. Please visit our COVID-19 Resource Center for more COVID-19 resources, and please reach out to us at chamber@arlingtonchamber.org if there is anything we can do to help you.