Tax Issues for Businesses
Covid 19 has affected every aspect of being a small business, including taxes. The normal accounting systems for payroll and sales taxes are at a standstill with so many businesses shut, and both the Florida Department of Revenue and the Internal Revenue Service (IRS) are operating with a skeleton staff.
The IRS does have several programs to help small businesses. They have instituted an Employee Retention Credit, which is “a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021.”
You can get immediate access to the credit by reducing the employment tax deposits you are otherwise required to make. Also, if your employment tax deposits are not sufficient to cover the credit, you may get an advance payment from the IRS. Not paying employment taxes seems like an easy solution to get more money, but it can be dangerous. Make sure to follow the IRS guidelines.
The IRS has also instituted a program to help pay for workers who need virus-related time off.
The Florida Department of Revenue has instituted new guidelines for paying sales taxes: Deadlines for paying sales taxes have been extended in many cases.
Both the IRS and the Florida DOR can be hard to deal with. Here at Comer Law, we have extensive experience with both organizations, so if you have any questions or concerns give us a call at 727-729-2719.