In an attempt to slow the spread of COVID-19, many businesses across the United States are being encouraged (or in some cases forced) to close temporarily. Due to this, lawmakers are working to provide ways to help employers and their employees.
Income Tax Filing
- 2019 Federal, PA, & Local taxes extended until July 15th –
- Federal – Federal income tax filing and payment due date is extended to July 15, 2020.1
Estimated tax payments due April 15th are also extended until July 15, 2020.
- Pennsylvania – PA income tax filing and payment due dates are extended to July 15, 2020. This extension also applies to estimated payments for the first and second quarters of 2020.2
- Local – PA Local governments tend to follow the Pennsylvania government in decisions regarding tax extensions.
- Continue to provide us your tax documents – Please note that even though the tax filing deadline has been extended, we ask that you do your best to respond to our questions and requests for documents in a timely manner as we are working remotely to complete all tax returns.
- IRA contributions and Health Savings Contributions – normally due April 15th – an extension has been granted to make 2019 contributions until July 15th.
- No waiting period for applicants – Usually there is a one-week waiting period for applicants after they file to begin receiving unemployment compensation. The waiting period has been eliminated due to COVID-19. Eligible claimants may receive benefits for the first week they are unemployed.
- No penalty to the employer – Typically an employer’s UC tax rate will increase if employees file for benefits. Businesses who are temporarily closed due to COVID-19 will be granted Relief from Charges and their tax rate will not be increased because of COVID-19 related claims.
- For more information – Please visit https://www.uc.pa.gov/COVID-19/Pages/Employer-COVID19-FAQs.aspx for more details pertaining to PA Employer UC & COVID-19 FAQs.
- Other States – If you operate in another state, please go to your respective state website and look for FAQs about COVID-19 to see what is available to you.
Payroll Tax Updates & Information
- Potential delays to tax payments – Some state withholding and unemployment agencies are investigating potential delays to payroll tax payment and filing due dates. Currently, there are no federal changes for filing or payment.
Families First Coronavirus Response Act (FFCRA)4:
- Effective April 1, 2020 – Signed into law on Wednesday, March 18, 2020, the FFCRA on April 1, 2020 will require certain employers to provide employees with expanded family and medical leave for specified reasons related to COVID-19.
- Please click on the links below for additional information provided by the U.S. DOL:
- We still have many questions about this act and are expecting clarification. Please monitor your email and check our blog for updates.
We are committed to doing all we can to slow the spread of the Coronavirus in our community, while being available to serve and support you during this challenging and uncertain time. Although we are working remotely, we will continue to monitor voicemail, mail, email, and faxes. Should you need to reach us with any questions at this time, please email us directly or call our office at 717 267 3572, leave a message, and a staff member will respond to you as soon as possible.
The health and well-being of our clients, employees, and community is still our top priority. The steps we take now, as a community, can have a drastic effect on the future. Let’s make them positive ones! Take care of yourself and one another.
- Tax Day now July 15: Treasury, IRS extend filing deadline and federal tax payments regardless of amount owed provided by IRS https://www.irs.gov/newsroom/tax-day-now-july-15-treasury-irs-extend-filing-deadline-and-federal-tax-payments-regardless-of-amount-owed
- Pennsylvania Extends Personal Income Tax Return Filing Deadline to July 15, 2020 provided by PA Dept of Revenue https://www.revenue.pa.gov/Pages/COVID19.aspx#PITDeadline
- Employer UC & COVID-19 FAQs for Pennsylvania Employers provided by PA Office of Unemployment Compensation (https://www.uc.pa.gov/COVID-19/Pages/Employer-COVID19-FAQs.aspx)
- Families First Coronavirus Response Act: Employee Expanded Family and Medical Leave Rights provided by U.S. Department of Labor