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San Jose tax lawyer for payroll tax extensionFor the past few months, the coronavirus pandemic has affected states across the country. Some states with larger populations, such as California and New York, have experienced a much larger infected population and have consequently placed restrictions on businesses and individuals in an effort to slow the spread of the virus. Nonessential businesses were ordered to shut down brick-and-mortar operations and work from home, if possible. Even though not all businesses were affected equally by the pandemic, many businesses are still struggling to stay afloat during this time. In response to the struggles that many businesses are feeling, California Governor Gavin Newsom issued an executive order allowing businesses affected by COVID-19 to request an extension to file payroll reports and taxes to the state.

How Can I Receive an Extension for Filing?

Payroll taxes consist of four separate categories: unemployment insurance (UI), employment training tax (ETT), state disability insurance (SDI), and personal income tax (PIT). Normally, these taxes are filed and paid by an employer on a regular basis. SDI and PIT due dates depend on the employer’s federal deposit schedule and the amount of PIT that has been withheld. UI and ETT payments are due quarterly, or every three months.

Usually, an employer would face penalties for late filing, and the employer would be required to pay a penalty plus interest on late payments. However during a state of emergency, employers can request that the deadline for their payroll taxes be extended up to 60 days. California Governor Newsom stated in an executive order that businesses that have been directly affected by the COVID-19 pandemic can request this extension.

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