Current Status (updated 3/23/2020)
On March 19th, Governor Gavin Newsom ordered a statewide shelter-in-place, with the exception of a few categories deemed essential businesses. Virtually all of our clients are now closed, have reduced staffing or are working remotely.
We continue to monitor the situation closely and are actively looking for resources to help small businesses with loan information and changing tax deadlines. Our outsource teams are experts at working virtually, and creating virtual, outsourced accounting solutions for our clients. Many of our clients will need to reduce their accounting staffing and we are able to step in to help when needed.
Our clients’ industries range from restaurants, to retail, to manufacturing and nonprofits—all of whom have been impacted by the closures. It looks like the government is working on loans for small businesses, relief for individuals and payment deferrals for everyone. We are reviewing all of the new information in real-time and gathering resources as we find them.
Below, we have outlined a number of links to resources (subject to change) that we hope you will find helpful. Also, you can visit our Coronavirus Resource Page, which is being updated in real-time, as we get new information. Please stay safe and call us for any reason. We are all in this together and are team is ready to help.
- San Francisco: Mayor Breed is working with the state to defer quarterly business taxes. Businesses are required to pre-pay their first quarter business taxes for current tax year by April 30th. This announcement allows businesses to not pre-pay, deferring payment due to February 2021. No interest payments, fees, or fines will accrue as a result of the deferral. This will be offered to businesses up to $10M in gross receipts. (via News Release 3/11/2020)
- California has pushed its tax filing deadline and payment deadline for Individuals to June 15, waiving interest and late filing and late payment penalties. (via Executive Order 3/12/20)
- Partnerships and LLCs who are taxed as partnerships usually due on March 15, now have a 90-day extension to file and pay by June 15. (via FTB release 3/13/2020)
- Quarterly estimated payments usually due on April 15 now have a 60-day extension to pay by June 15. (via FTB release 3/13/2020)
- Employers directly impacted by COVID-19 may request a 60-day extension from the EDD to file their state payroll reports and/or deposit payroll taxes without penalty or interest. (via EDD website 3/2020)
- Waives one-week waiting period for people who are unemployed and/or disabled as a result of COVID-19. (via Executive Order 3/12/2020)
- Emergency tax or fee relief is available from the CDTFA for business owners and feepayers that have been directly affected by disasters declared as state of emergencies nationally (other than California) over the past three years. Relief may include the extension of tax return due dates, relief of penalty and interest, or replacement copies of records lost due to disasters. (via State of Emergency Tax Relief 3/2020)
- Sick or quarantined workers can file a disability insurance claim. (via EDD website 3/2020)
- Caregivers who are unable to work for an ill or quarantined family member can file a Paid Family Leave claim, which provides up to six weeks of benefit payments. (via EDD website 3/2020)
- If a workplace has to reduce hours or shut down operations, you can file an Unemployment Insurance claim. (via EDD website 3/2020)
- High-deductible health plans can cover Coronavirus costs (testing and treatment). (via IRS website 3/11/2020)
- Tax Day moved from April 15 to July 15; IRS extends filing deadline and federal tax payments regardless of amount owed. (via IRS website 3/21/2020)
- On March 18th, the President signed the Families First Coronavirus Relief Act into Law (via Congress website 3/18/2020)
- Paid Sick Leave for Workers: Related to COVID-19, employees receive 80 hours of paid sick leave and expanded paid child care leave when a child’s school or care provider is unavailable. Employers receive 100% reimbursement for paid leave.
- Complete Coverage: Health insurance costs are included in the credit; no payroll tax liability for employers; self-employed receive equivalent credit.
- Fast Funds: Immediate dollar-for-dollar tax offset against payroll taxes; where refund owed, IRS will send refund as quickly as possible.
- Small Business: If fewer than 50 employees, eligible for exemption from requirements to provide leave to care for child whose school is closed, or child care unavailable in cases where viability of business is threatened.
- Easing Compliance: Requirements subject to 30-day non-enforcement period for good faith compliance efforts.
- The Small Business Administration (SBA) is providing disaster loan assistance to help small business, small agricultural cooperatives, and most private, nonprofit organizations. (via SBA Fact Sheet 1/31/2020)
- The U.S. Treasury Department and Internal Revenue Service (IRS) today issued guidance allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest. (via Emergency Declaration 3/18/2020)
- The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest. This guidance does not change the April 15 filing deadline. (via Emergency Declaration 3/18/2020)