IMPORTANT CLOVID-19 TAX UPDATE

Dear Clients,

All of us here are thinking of all of you and we’re here to make sure that you’re up to date with the upcoming laws. We’ve received emails regarding unemployment and the stimulus package. We’re still waiting to hear on when these stimulus checks will be issued, but we’re encouraging all clients who haven’t already filed their 2019 return to do so and to include their banking information so that they can receive their checks ASAP. If the IRS does not have your direct deposit info the stimulus checks can take up to 4 months for issuance.
Not everyone should rush in on filing these returns unless your income has decreased in 2019 since the stimulus checks are based on the 2018 tax return vs. the 2019 tax return. I am making this a point for anyone who works in the entertainment industry since income between years can fluctuate significantly.
Below is important information for those considering filing for unemployment. The new stimulus package isn’t finalized yet, but we will be updating this blog post with important info as soon as it’s been reported by the IRS and the California franchise tax board.
Our office has remained open, but we’re not taking in any in person appointments. We’re open for drop offs and document pick ups only. Please call our office at 818-755-2950 or email reception@dqtax.com for more information or to arrange such a meeting.
This chart includes information on how unemployment has been expanded due to COVID-19 and information on other programs that individuals may qualify for. 
 
For additional information you may also want to review the CA EDD COVID-19 information located at https://edd.ca.gov/about_edd/coronavirus-2019.htm
 
 

Stimulus

The stimulus package would:
  • $1,200 for each qualified adult and $500 for children 16 and under. 
  • Include gig workers, freelancers, and independent contractors 
  • Eligible workers would receive an additional $600.00 per week, in addition to their weekly benefit which is calculated depending on each individual’s income for a maximum of $450.00 per week. In other words, an eligible person could potentially receive up to $1,050.00 per week.
 

Unemployed

Section 1252 of the UI Code provides, in part, that an individual is “unemployed” in a week in which he or she performs no services and with respect to which no wages are payable to him or her.
 
Therefore, it seems that if a person is not performing any services and therefore is not receiving a wage, then they could qualify as unemployed even if they are self-employed. The unemployment must be due to no fault of their own. This has been previously extended to officers in corporations that ceased function due to circumstances out of their control.
 
 

Small Business Owners

UI Cost to Employers
UI is paid by the employer. Tax-rated employers pay a percentage on the first $7,000 in wages paid to each employee in a calendar year. The UI rate schedule and amount of taxable wages are determined annually. New employers pay 3.4 percent (.034) for a period of two to three years. The EDD notifies employers of their new rate each December. The maximum tax is $434 per employee per year (calculated at the highest UI tax rate of 6.2 percent x $7,000.)
 
 
 

Filing a Claim

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