Federal Income Tax payments are postponed. Taxpayers have until July 15, 2020 to pay taxes for 2019. This postponement also extends to self-employment tax for anyone who is taxed as a sole-proprietor. Further, the first quarterly estimated income tax payment for 2020, normally due on April 15, has also been postponed to July 15, 2020. The Internal Revenue Service will not charge interest or penalties.
The coronavirus paid-leave package includes tax credits for many employers. “The law requires firms with fewer than 500 workers to provide paid sick and family leave to employees who can’t work because they or a family member is affected by COVID-19, or who need to stay home to care for their kids while schools and daycare are closed. The credits offset quarterly payroll taxes. [The credits] reimburse the employer’s cost of providing mandated paid sick and family leave on a dollar-for-dollar basis. Self-employed individuals are also entitled to a credit to offset SECA tax.” The Kiplinger Tax Letter Vol. 95, No.6.
The Pennsylvania Department of Revenue has also postponed its tax deadlines until July 15, 2020. Full details of all postponements can be found on the Pennsylvania Department of Revenue’s website. PA Department of Revenue Covid-19 Postponements
Bononi and Company, P.C. remains at the forefront of the ever-changing legal and tax landscape since COVID-19. Our unique team of Attorneys, CPAs, Accountants, and Professional Staff continue to provide the local and trusted services you have come to expect since 1985. Contact our office with any questions. We are proud to have three offices across Southwestern Pennsylvania in Greensburg, Latrobe, and Johnstown.