Deadline Extensions
• The April 15th due date for Federal and NC income tax payments has been extended until July 15th for both filing and payment. The Federal government will not charge interest. North Carolina will charge interest as the law now stands; we will let you know if that changes. This applies to both payments with income tax returns and estimated tax payments. The extended deadline does not apply to payroll tax deposits, sales tax or other taxes.
• It currently appears your second quarter 2020 estimated tax payment will be due on June 15th as scheduled.
Potential Tax Credits
- If you pay sick leave because of a COVID-19 related illness or to pay child-care leave for a parent with a child out of school or daycare, you most likely will be eligible for reimbursement via payroll tax credits.
- This credit will allow you to either get a refund when you file your payroll tax returns, or you can reduce your payroll tax deposits now. In effect allowing the Federal government to reimburse you for the paid leave.
- Some limitations apply and all the details are currently not fully known. The IRS and Department of Labor have promised further details next week.
- Note: The Families First Coronavirus Response Act passed recently requires businesses with fewer than 500 employees to pay sick and child-care leave. Businesses with less than 50 employees can be exempt from the child-care related leave requirement “if it would jeopardize the ability of the business to continue.”
Note: As it currently stands the information on the leave pay requirement and applicable tax credits is vague and confusing. You may not want to take action on this until more guidance is issued which is expected next week. For now you can go to this link for more information.
SBA Disaster Loans are Available Now
If your business needs cash to pay employees, bills, or other obligations you can apply for an SBA Disaster Loan. Some features of the loan are as follows:
o Interest Rate is 3.75%
o Favorable Repayment Terms (one-year payment deferment and up to 30-year term)
o Loans must be repaid – they are not eligible for loan forgiveness.
o You must provide both personal and business financial information online and they will check credit.
o The SBA states that it is a quick approval process.
o The SBA states that these loans should not impact any other stimulus package incentives that may be forthcoming.
Please contact us with any questions.
The Team at NCLL CPA
