Tax Relief and Assistance
Find information on tax relief and assistance from the state and federal government below:
- Sales Tax Relief: Effective April 2, 2020, small business taxpayers, those with less than $5 million in taxable annual sales, can take advantage of a 12-month, interest-free, payment plan for up to $50,000 of sales and use tax liability. Payment plan requests can be made through the California Department of Tax and Fee Administration’s online portal. Find more information here.
- Employee Retention Tax Credit: The IRS introduced an employee retention tax credit designed to encourage businesses to keep employees on their payroll. This credit is available to employers if their business is fully or partially suspended by government order or experience a decline in gross receipts by more than 50% in a quarter compared to the same quarter in 2019. The amount of the credit is 50% of qualifying wages paid up to $10,000 in total. Wages paid after March 12, 2020, and before Jan. 1, 2021, are eligible for the credit. Wages taken into account are not limited to cash payments, but also include a portion of the cost of employer provided health care.
- Request a 60-Day Extension to File Payroll Reports: The California Employee Development Department is offering businesses directly affected by coronavirus up to a 60-day extension to file your state payroll reports and deposit state payroll taxes without penalty or interest, upon request. Upon filing, you must include the impact of coronavirus in your written request for the extension. Your request must be received within 60 days from the original past-due date of the payment or return.
- Additional Relief for Business Taxpayers - The Executive Order by California Governor, Gavin Newsom, signed on March 30, expands tax relief for small business taxpayers, the California Department of Tax and Fee Administration, or CDTFA for short, announced that all small businesses will have an additional three months to file returns and pay taxes administered by the department. Additionally, all businesses will have an extra 60 days to file claims for refund from CDTFA or to appeal a CDTFA decision to the Office of Tax Appeals. CDTFA is providing a three-month extension for a tax return or tax payment to any businesses filing a return for less than $1 million in tax.