How COVID-19 Affects Your Taxes
This COVID-19 pandemic has affected everyone in some way, there's no doubt about that. You may be wondering how it will affect your taxes. Our Mid-MO CPA firm is here to clear that up for you in this week's blog. It's clear that the COVID-19 will affect your taxes and our accountants in Central Missouri feel that the best way to explain exactly how is to give you the facts straight from the IRS. Keep reading for some of the latest information highlights that have been unveiled by the IRS in this week's blog. Remember, if you are in need of tax assistance, Wilson Toellner can still help you over the phone, by e-mail, or via mail. Visit www.WTCPA.com for all of our contact information.
STIMULUS PAYMENT CHECKS ARE COMING.
There is currently no information available yet regarding the specifics of this, but you should keep checking the IRS website as we get further into this pandemic. This could affect individuals who make a salary of $99,000 or less or married couples who make $198,000 or less.
THE TAX DEADLINE CHANGED.
The deadlines to FILE and PAY federal and Missouri state income taxes are automatically extended to July 15, 2020.
BUSINESS OWNERS: PAY ATTENTION.
PAID SICK LEAVE TO EMPLOYEES
For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave if quarantined and expanded paid child care leave when employees' children's schools are closed or child care providers are unavailable. Wages paid under this Act for sick pay are capped at $511 per day and $5,110 in the aggregate when sick and at $200 per day, and $2,000 in aggregate for caring for others or children due to closures.
Complete Coverage
Employers receive 100% reimbursement for paid leave pursuant to the Act.
Reimbursement will be quick and easy to obtain.
SMALL BUSINESS PROTECTION
Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened. We anticipate any future regulations would address the extent to which such categories of employers will be excluded and any requirements for an employer to be excluded.
EASING COMPLIANCE
Requirements subject to 30-day non-enforcement period for good faith compliance efforts.
To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released next week.
All of us here at Wilson Toellner CPA hope that you are taking every precaution to get through this pandemic safely. If you're a business owner, allow all your employees who can work from home. If you're an employee who is fortunate enough to be allowed to work from home, please take this seriously and follow the proper guidelines for stopping this spread. Don't leave your home unless you absolutely have to and if you do have to, practice social distancing and remain six feet away from other people. We will help you with your taxes, but you have got to take care of you and your family. For more information on tax assistance during the COVID-19 pandemic, please give us a call. Our phone numbers are listed below. Remember to use our SafeSend Portal to safely send your important documents, it can be accessed HERE.
Information from The IRS
STIMULUS PAYMENT CHECKS ARE COMING.
There is currently no information available yet regarding the specifics of this, but you should keep checking the IRS website as we get further into this pandemic. This could affect individuals who make a salary of $99,000 or less or married couples who make $198,000 or less.
THE TAX DEADLINE CHANGED.
The deadlines to FILE and PAY federal and Missouri state income taxes are automatically extended to July 15, 2020.
BUSINESS OWNERS: PAY ATTENTION.
PAID SICK LEAVE TO EMPLOYEES
For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave if quarantined and expanded paid child care leave when employees' children's schools are closed or child care providers are unavailable. Wages paid under this Act for sick pay are capped at $511 per day and $5,110 in the aggregate when sick and at $200 per day, and $2,000 in aggregate for caring for others or children due to closures.
Complete Coverage
Employers receive 100% reimbursement for paid leave pursuant to the Act.
- Health insurance costs are also included in the credit.
- Employers face no payroll tax liability.
- Self-employed individuals receive an equivalent credit.
Reimbursement will be quick and easy to obtain.
- An immediate dollar-for-dollar tax offset against payroll taxes will be provided
- Where a refund is owed, the IRS will send the refund as quickly as possible.
SMALL BUSINESS PROTECTION
Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened. We anticipate any future regulations would address the extent to which such categories of employers will be excluded and any requirements for an employer to be excluded.
EASING COMPLIANCE
Requirements subject to 30-day non-enforcement period for good faith compliance efforts.
To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released next week.
All of us here at Wilson Toellner CPA hope that you are taking every precaution to get through this pandemic safely. If you're a business owner, allow all your employees who can work from home. If you're an employee who is fortunate enough to be allowed to work from home, please take this seriously and follow the proper guidelines for stopping this spread. Don't leave your home unless you absolutely have to and if you do have to, practice social distancing and remain six feet away from other people. We will help you with your taxes, but you have got to take care of you and your family. For more information on tax assistance during the COVID-19 pandemic, please give us a call. Our phone numbers are listed below. Remember to use our SafeSend Portal to safely send your important documents, it can be accessed HERE.
Our Success Stems From Your Success
For tax preparation services you can count on, call:
Sedalia -- (660) 827-4990
Marshall -- (660) 886-6815
Camdenton -- (573) 346-6822
Lake Ozark -- (573) 964-5739
Check out our website: www.WTCPA.com
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