Restaurant Industry News

Check out the latest articles, newsletters, and more! 

Articles from The Insider’s Report archives go back over several years. Some articles may include date-sensitive information or other information that has changed over time.
Please consult with your advisor or Kallas Company for updated information or if you have any questions.

 

Sales tax and Michigan Withholding

The state had allowed businesses to delay paying their February, March, and April sales and withholding taxes until June 22 without any penalties or interest.

In addition, you may enter into an installment agreement for the amounts due June 22 paying 1/6 each month for 6 months in addition to the normal monthly amount due.

Call Kallas for more details on how this works.

Federal payroll taxes

You may defer the employer’s portion of payroll taxes for the remainder of 2020 and pay ½ on December 31, 2021 and the other ½ on December 31, 2022 without penalty and interest.  Call Jordan at Kallas ext 119 for more details.

Income taxes

The IRS declared that 2019 tax return AND tax due payments could be extended from the traditional April 14 until July 15.  Additionally, a taxpayer could request an extension to file the personal return until October 15, 2010 (any tax due would still be due July 15).

The 2020 first and second quarter estimates which are traditionally due April 15 and June 15 of 2020 were also extended to July 15.  So, a self-employed taxpayer theoretically would owe his or her tax due for 2019 plus the first and second estimates for 2020 all on July 15 2020.

Estimated taxes

If you pay estimated taxes, your 3rd quarter and 4th quarter payments are still due September 15, 2020 and January 15, 2021.  Because of the COVID-19 shutdown and reduction of business, you may think that your estimated taxes are too high.  If that is the case, you may adjust them yourself or call Jacob at Kallas ext 120 and we can re-calculate an estimate for you.  As of now, the penalties for underpayment of estimates are still in full force so be aware that unless the IRS changes the rules, if you underpay your estimates for 2020, you may be penalized.

State payment plans

Are you on a state installment payment plan for back taxes?  If yes, you might be eligible for a reduced payment.  Because of COVID-19 , the state is relaxing payment plan requirements.  This is an important likely one-time break for those on a payment plan with the state. Contact Tony at Kallas ext 128 to learn more.

 

 

Read Our Current Restaurant Owner's Newsletter!

Everything the Bar and Restaurant Owner needs to know!

Like What You See?

Stay up-to-date and signup to receive our free newsletter.