3/21/20 COVID19 Highlights
Mar 21, 2020
What a difference a week makes!
While we wait for the passage of the next bill dealing with COVID19 tax relief (the one with the proposed $1200 pmts), let's hit a few tax and bookkeeping highlights for this past week:
***The national tax filing deadline has been extended to July 15th, 2020. This is the new deadline for anything that was due April 15th---your 1040 return, extensions until 10/15, your first 2020 estimated payment, 1120 (C-corp) filings, IRA contributions for 2019…etc.
BTW, if you make IRA contributions after 4/15—and before 7/15—make sure to make it for 2019---not 2020. This oversight already occurs more often than what you’d think with the normal date, so watch out!
***Employees who are dealing with COVID19 virus issues are financially protected if they’re out of work for more than 10 days (first 10 days are unpaid). Employers are required to provide paid medical leave for up to 12 weeks, following an initial period of 10 non-paid days, at a rate of 2/3 of their regular pay, with limits of $200/ day and $10,000 in total---the limits are $511/day and $5110 for those who’ve contracted the virus and are under quarantine orders or experiencing COVID19 symptoms.
Three things are important to note: There is an exemption available for employers with less than 50 employees. There will be a 100% tax credit available for the full amount of qualified sick pay, and some states may have different laws for their constituents (but never under the minimum set up by federal). For more info visit the Dept. of Labor’s site here: www.dol.gov/agencies/whd/pandemic
***Louisiana business owners qualify for disaster loans through SBA. Note that they recommend you apply during non-peak hours of 7pm-7am. Check out their website www.sba.gov.
***Employees laid off or whose hours have been reduced qualify for unemployment benefits. In Louisiana, qualifying for these COVID19 related unemployment benefits also qualifies for SNAP food stamp benefits. Their website is www.louisianaworks.net
***Business employers got a LDR sales tax extension to May 20th--matching the City of New Orleans' extension (we imagine most parishes will honor this---however, call your local parish office to make sure yours is also extended). The state website is www.revenue.louisiana.gov and the New Orleans sales tax site is www.nola.gov/revenue-sales-tax/
***JEDCO has a directory of all Jefferson Parish business that are open for business. Check it out here: https://www.jedco.org/jedcobusinessboost/
***While deadlines have been extended for the various taxes owed, may we suggest that, if you're operating, collecting taxes, and able to, please try to file and pay them at their regular due dates.
You’ll not only be helping the government's cash flow, but you’ll prevent those liabilities from stacking up and getting out of control when they finally come due (because eventually the piper will need to be paid!).
***We are still open, though with a ‘drop-off” only policy, able, willing, and ready to work on your taxes. Please don’t wait until July to think about your taxes---come in right now, while you still have almost four months to file them!
***Finally, without getting preachy or offering any judgement for whatever your beliefs are, please pray that an end to this pandemic comes swiftly and with the least amount of human loss of life.
Stay well, everyone.
The staff at Larry’s Income Tax