Wick Law wants to provide small business owners with the latest COVID-19 related policies that could impact your business. See below for recent policy updates impacting your taxes, unemployment and workers’ compensation.
TAX RETURNS – The Treasury Department and Internal Revenue Service announced on March 21, 2020 that the federal income tax filing due date is automatically extended form April 15, 2020 to July 15, 2020. Click the link to see the link to IRS’s statement: https://www.irs.gov/newsroom/tax-day-now-july-15-treasury-irs-extend-filing-deadline-and-federal-tax-payments-regardless-of-amount-owed
Here are the highlights:
- Taxpayers can defer federal income tax payments due on April 15, 2020 to July 15, 2020 without penalties and interest.
- This deferment applies to all taxpayers, including individuals and corporations and other non-corporate taxpayers as well as those who pay self-employment tax.
- You do not need to file any additional forms to qualify for this automatically relief.
- If you need extra time beyond the automatic extension until July 15, 2020, request an extension through your tax professional.
- If you are due a refund, you are encouraged to file as soon as possible. Tax refunds are still being issued within 21 days.
WORKERS COMPENSATION – The Ohio Bureau of Workers’ Compensation will defer business premiums for the months of March, April and May leaving $200 million to circulate in the state economy.
- Insurance premium installment payments are deferred until June 1, 2020.
- BWC will not cancel coverage or assess penalties for amounts not paid because of coronavirus.
- More information can be found here: https://www.bwc.ohio.gov/downloads/blankpdf/COVID-19-BWCFAQs.pdf
UNEMPLOYMENT – Governor Mike DeWine signed executive order (2020-03D) which makes several changes to Ohio’s unemployment law. One main focus is helping to stop an increase in employers’ unemployment taxes. Some highlights include:
- Any benefit paid on unemployment claims shall not be charged to the account of the employer, but instead shall be charged to the mutualized account.
- Penalties for late reporting and payments will be waived for employers affected by COVID-19.
- The one-week unemployment waiting period normally required when filing an unemployment claim is being suspended in cases in which employees are forced to apply for benefits due to corona-virus related reductions or quarantines.
- For more information, refer to: https://www.nfib.com/content/nfib-in-my-state/coronavirus/coronavirus-unemployment-in-ohio/
