URGENT…PLEASE READ REGARDING NEW PROCEDURES EFFECTIVE 3-18-20
UPDATE 3-23-20, APRIL 15th DEADLINE EXTENDED, NEW OFFICE PROCEDURES
UPDATE 3-26-20 URGENT PAYROLL INFORMATION BELOW
First and foremost, we hope you, your friends and family are in good health and doing what you must to protect yourselves from the spread of the Coronavirus. As with everything, this too shall pass, and we’ll be here to service you and your business in a more familiar way when we’re cleared to do so. Until then, please take the time to review our necessary policies so that we may continue do what needs to get done relative to your tax returns and associated business concerns. While not business as usual, we’re still working hard on your behalf to provide the service you expect from The Tax Office team.
The spread of COVID-19 is presenting tough choices for individuals and businesses alike. We are following daily developments closely – prioritizing the health and well-being of our employees, clients, and families while keeping our organizations and economies moving forward.
The Federal Government has announced that the Federal Tax deadline has now been moved back to July 15th giving everyone an additional 3 months to complete their tax returns. While the sense of urgency has been eased a bit, we would encourage you to have your documentation prepared for drop off. Please reach out to schedule phone consultations and for further information as we continue along this continuously updating journey. In addition, the State of California has postponed the April 15th filing deadline until July 15th.
Effective immediately, in the interest for all concerned we will not be meeting in-person with any of our clients until further notice. This means we will be taking all appointments via telephone at this time. All other communication will be through email, phone or our secured portal as well as through traditional mail. Our team is working diligently on your behalf with a reduced team in the office and digitally from home to meet your expectations. We have also set up a drop box in front of the office for you to drop your documents into for review. We’ll be retrieving the contents frequently.
Deadline for Filing Taxes
Currently, the deadline for Federal returns has been changed to July 15, 2020. Both the IRS and California will waive any penalties for not paying taxes owed for an additional 90 days. The President has instructed the IRS to extend the filing date. We will update you if and when there are any changes.
Our Business Partners
We are working virtually with our business partners where physical meetings are not advisable and will continue to work with them so that services and products run as smoothly as possible. The IRS, software providers, and other providers are limiting their services during this time. As such, we will need to reduce our hours to ensure support.
We will continue to prepare your tax returns and other projects. We will contact you as your returns are completed. Most returns are electronically sent, and you can review the tax return online and return the action items to us electronically. Paper copies can be picked up at our office or can be mailed.
Please be patient during this unusual time. When you drop off your information, please use all precautionary measures. Additionally, please do not visit our office if you or your children are feeling ill or have been running a fever.
We will keep you up to date on the filing deadlines and tax payment deadlines. Please check our website, Facebook or our app for further information. As always, should you have questions, don’t hesitate to email or call us.
URGENT PAYROLL INFORMATION
As we continue to monitor Coronavirus (COVID-19) developments closely, the health and well-being of our clients and their employees is of utmost importance to us.
Recently, our federal government has enacted the Families First Coronavirus Response Act, which will require employers with fewer than 500 employees to provide paid leave to employees who are impacted by COVID-19 and offer tax credits to employers that do so. This law takes effect on April 1, 2020.
Here is what you need to know about Sick and Family Paid Leaves:
Generally, the Act provides that covered employers must provide to all employees:
- Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
- Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19
A covered employer must provide to employees that it has employed for at least 30 days up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.
Here is what you need to know about the Payroll Tax Credit:
Employers will be entitled to a refundable credit for 100% of qualified wages paid to an employee under this plan. (Including the cost of providing health insurance coverage for an employee during the employee’s emergency leave period)
Employers will be able to take immediate advantage of the available credits by retaining the funds they otherwise would be required to use for payroll tax withholdings.
- For example, if your payroll for the period yielded an IRS tax liability of $4,000 and you paid 1 employee who was on leave a total of $1,000 in wages that period then your IRS tax liability would be automatically reduced to $3,000 for that payroll.
If there are not sufficient payroll taxes to cover the employer’s costs for providing pay covered by the Act, employers will be able to file a request for an accelerated refund of their payroll taxes from the IRS, which the IRS expects to process within two weeks or less.
Here is what we are doing:
Our office is currently closed to the public, but we are still working as hard as ever to ensure no interruptions to your payroll service. We are currently updating our system to conform with the payroll tax credit provisions detailed within the Act. We will provide you with any necessary posters or documents required for your business as it relates to payroll and your employees.
- Attached you will find the Employees Rights poster that you are required to post in your places of business where all employees have access to it. If your business is one where employees do not have a central location to go to you must send it to each employee individually.
This is a very fluid situation, but we will be here to answer your questions as they arise. Thank you again for your assistance and understanding during this trying time for us all.
Stay safe and healthy,
The Tax Office Solutions team