Employer tax benefit on the Consolidated Appropriations Act, 2021 (the Act)
1. Extension of paid leave tax credits Under the FFCRA, employers with under 500 employees generally must provide paid leave to certain individuals impacted by COVID-19. This requirement goes through December 31, 2020, and employers are eligible for a credit against payroll taxes to mitigate the cost of this leave. The Act does not require…
[6/6/2020] Coronavirus 2019 (Covid-19) Tax Update 6: PPP Loan Forgiveness
Trump Signs New Law Relaxing PPP Rules: What You Need To Know Reduced payroll cost from 75% to 60% At least 60% of your loan must be used for payroll costs. Payment to independent contractors cannot be included in the payroll costs. 24 WEEKS OF COVERAGE Eligible expenses incurred that are to be forgiven was…
Payroll Updates as of 4/15/2020
1. Form 941 and Form 940 (Deposit Only) As of April 15, 2020, the Internal Revenue Service has NOT announced any extension about Form 941 which will be due by April 30, 2020. The Service neither announced the deferral of payroll taxes due in the month of April. 2. EDD Statewide – March 2020 Employers…
[4/15/2020] Coronavirus 2019 (Covid-19) Tax Update 4
IRS provides additional extensions: Income tax filing and payment, estimated tax payments, IRA and HSA contributions The IRS has now expanded its extension relief to most taxpayers who had income tax filing and/or payment obligations due on or after April 1, 2020, and before July 15, 2020, including second estimated tax payments that fall within…
COVID-19 Extensions to File and Pay Sales Tax & Small Business Relief Payment Plans
A. COVID-19 Extensions to File and Pay In accordance with the Executive Order issued by Governor Gavin Newsom on March 30, 2020, CDTFA is providing an automatic three-month extension for a tax return or tax payment to any businesses filing a return for less than 1 million in tax without incurring any penalties or interest.…
Penalty for Property tax late payment can be waived
Under existing law, county tax collectors do not have the authority to extend the property tax deadline. Penalties can be waived under following two circumstances: Offices of any county tax collector are closed and, as a result, taxpayers are unable to make property tax payments to that county by April 10. Online payment and pay-by-mail…
City of Los Angeles – Emergency COVID-19 Ordinances
On March 27, 2020, the Los Angeles City Council approved the following emergency COVID-19 ordinances. 1) COVID-19 Supplemental Paid Sick Leave (“SPSL”)(Article 5-72HH)http://clkrep.lacity.org/onlinedocs/2020/20-0147-s39_ord_draft_03-27-20.pdf ApplicableEmployers are obligated to provide 80 hours of SPSL to applicable employees.The ordinance expires on December 31, 2020 unless the City Council takes action to extend the ordinance. Applicable employers The new…
Coronavirus 2019 (Covid-19) Tax Update 2
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a stimulus bill that includes a loan program to keep small businesses afloat during mandated COVID-19-related closures. Here are the details: 1. Stimulus Check to Individual Taxpayers Maximum $1,200 for a Single taxpayer ($2,400 for married…
Coronavirus 2019 (COVID-19) / Tax Update: as of March 17, 2020
1. IRS IRS will waive interest and penalty charges for 90 days for Americans who owe up to $1 million in taxes. Tax filing due date is not extended so filing is encouraged by April 15; it’s unclear at this time whether the IRS will officially extend that filing deadline as well. https://home.treasury.gov/news/press-releases/sm948 2. The…
CALIFORNIA SOLE SHAREHOLDER/CORPORATE OFFICER EXCLUSION FROM STATE DISABILITY INSURANCE FOR 2 YEARS
In a private corporation, any person who is a corporate officer and sole shareholder, or the only shareholder other than his or her spouse, may file a statement electing to be excluded only from State Disability Insurance (SDI) coverage for contributions and benefits, which includes Paid Family Leave (PFL). Sole Shareholder_Corporate Officer Exclusion Statement (DE…
Secure Act
THE SETTING EVERY COMMUNITY UP FOR RETIREMENT ENHANCEMENT ACT OF 2019 (THE SECURE ACT) TITLE I: Expanding and Preserving Retirement Savings Section 101. Expand Retirement Savings by Increasing the Auto Enrollment Safe Harbor Cap The legislation increases the cap from 10 to 15 percent of employee pay that required automatic escalation of employee deferrals go…
How Much Can Businesses Deduct for Vehicles Placed in Service in 2019?
Does your business need to add one or more vehicles? If so, the purchases may qualify for tax breaks under current tax law. Here are the details. First-Year Depreciation Breaks The Tax Cuts and Jobs Act (TCJA) allows unlimited 100% first-year bonus depreciation for qualifying new and used assets (including eligible vehicles) that are acquired…
