Here are a couple quick updates on changes to 1099 non-employee compensation reporting and delay of Michigan minimum wage increase. Please note important filing dates and related penalties:
BHT&D Certified Public Accountants Blog
Section 139 of the Internal Revenue Code excludes from a taxpayer’s gross income certain payment to individuals to reimburse or pay for expenses related to a “qualified disaster”. Covid-19 is a federally declared disaster.
On June 19th, 2020 the IRS published the final revised Form 941 that will be used for the remainder of 2020. The purpose of filing this quarterly form is to report to the IRS the wages subject to social security, Medicare and federal income tax withholding. This new revised form takes into account changes made by the Families First Act and the CARES Act that provided various types of payroll tax relief for employers.
The CARES ACT provides employers an alternative to the Paycheck Protection Program under the Employee Retention Credit. You can only take advantage of one or the other, but not both.
The goal of the Employee Retention Credit is to encourage employers to keep employees on payroll by offering a credit up to $5,000 per employee.
Sources cited by the Washington Post indicate that if the IRS does not have direct deposit information on record for you, paper stimulus checks will be mailed out starting on April 24th. The IRS plans to issue checks at a rate of about 5 million checks per week, which could take up to 20 weeks to complete. They will be sent out in reverse 'adjusted gross income' order, starting with people with the lowest income first:
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on Friday, March 27th, 2020 and went into effect on April 1st, 2020. This blog post focuses in on the expansion of unemployment benefits for individuals including the self-employed and individuals with limited work history.
A summary of major provisions of the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act affecting small businesses and self-employed taxpayers:
A summary of major provisions of the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act affecting individual taxpayers:
The Internal Revenue Service has extended the federal tax return filing date from April 15, 2020 to July 15, 2020.
They have also issued an update on their plan to implement the new paid leave provisions of the Families First Legislation.
The following are other tax related deadlines as of this posting:
To answer questions about paid sick leave and unemployment, we are providing a chart about recent federal and Michigan state updates.
The comprehensive chart answers questions about: