How small and medium-sized restaurants can get a tax credit


The Internal Revenue Service and the Treasury Department on Wednesday detailed a plan that will allow small and medium-sized businesses to claim tax credits for granting paid time off to employees to be vaccinated against COVID-19.

Eligible employers, which include businesses with fewer than 500 employees and some government employers, can claim a tax credit for giving each employee paid time off to receive the vaccine and for any time needed to recover from the vaccine. vaccine.

“This new information is a boost for struggling small employers who are working hard to maintain their businesses while ensuring the health of their employees,” said IRS Commissioner Chuck Rettig.

The new tax credits are part of the $ 1.9 trillion American Rescue Plan Act of 2021, which was enacted in March.

In addition, the White House announced that it has expanded the IRS credit announcement and that it allow employers with fewer than 500 employees to claim up to $ 17,110 for 14 weeks of paid leave for each affected employee not only to get the vaccine, but also to take time off if they show symptoms of COVID-19 and go to the doctor; are tested for COVID-19; are in quarantine or in isolation by the government or a doctor (or caring for someone who is); or need to care for a child whose school or child care provider has closed due to COVID-19.

Paid time off has proven to be an essential tool in stopping the spread of COVID-19, including a study which showed that the paid time off provisions put in place last year prevented around 400 cases of COVID-19 per day and prevented a case of COVID-19. per day for 1,300 workers, said the White House.

ARP tax credits are available to eligible employers who pay sick and family leave for leave from April 1, 2021 to September 30, 2021.

Learn more about how smalls and midsize businesses can claim paid vacation tax credits for vaccines here.

Source link

Leave A Reply

Your email address will not be published.