COVID-19: Deferred State Tax Payments
Explains the process to defer state tax remittance in accordance with financial relief efforts stemming from COVID-19.
OVERVIEW
Namely Payroll is designed to calculate and collect taxes each time you run payroll. A number of states are allowing companies to delay Q1 payment remittance for select taxes, without penalties and interest, in an effort to provide financial relief to companies that may be struggling financially from the COVID-19 outbreak.
If you’d like to delay the remittance of any qualified tax payments, we can temporarily refund the amount we’ve collected for Q1 payroll taxes in a designated jurisdiction. Please visit the following article for instructions and a link to our digital Tax Deferral Request form to opt into any available tax deferrals: COVID-19: Tax Deferral Waiver.
ELIGIBLE JURISDICTIONS
Below is a list of states and the corresponding taxes that are eligible for deferred payments. This table will be continuously updated as each state provides more information:
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Updated 4/15/2020, 3:01pm |
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State |
Tax |
New Q1 Due Date |
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Arizona |
Unemployment Insurance (UI) |
June 1, 2020 |
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California |
State Income Tax (SIT) |
60 days after last payroll processing |
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California |
Unemployment Insurance (UI) |
June 30, 2020 |
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California |
State Disability Insurance (SDI) |
60 days after last payroll processing |
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California |
Employment Training Tax (ETT) |
June 30, 2020 |
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Indiana |
Unemployment Insurance (UI) |
May 31, 2020 |
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Iowa |
Unemployment Insurance (UI) |
July 31, 2020 |
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Louisiana |
Unemployment Insurance (UI) |
July 31, 2020 |
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Maryland |
State Income Tax (SIT) |
July 15, 2020 |
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Massachusetts |
Unemployment Insurance (UI) |
June 30, 2020 Note: MA requires a written request to obtain this deferral. Please click herefor more information and a suggested template you can use in your communication. Please email request to:Revenue.Enforcement@DETMA.org |
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Mississippi |
State Income Tax (SIT) |
May 15, 2020 |
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Missouri |
Unemployment Insurance (UI) |
June 1, 2020 |
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New Mexico |
State Income Tax (SIT) |
July 25, 2020 |
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South Carolina |
State Income Tax (SIT) |
June 1, 2020 |
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South Carolina |
Unemployment Insurance (UI) |
June 1, 2020 |
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For information on the CARES Act’s provisions around deferring payment on 2020 federal employer Social Security taxes, please see COVID-19: Employer Social Security Payment Deferrals. |
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REMITTANCE TRACKING AND PROCESS
Namely can remit deferred tax payments on your behalf. You'll need to wire us funds ten business days prior to the new due date for each jurisdiction to avoid penalties and interest. You can use the Namely Treasury Bank Wire Form to wire us funds for remittance.
These two reports, located in Reports > Date Range in Namely Payroll will help you track due dates for your tax payments:
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COVID-19 - California Tax Deferrals Report
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COVID-19 - Tax Deferrals Report
To find all of your deferred Q1 taxes in Namely Payroll:
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Go to Reports > Date Range and select 1st Quarter.
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Click the PDF Payroll Register report.
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You’ll find your deferred taxes under the Uncollected Taxes section.
To find your accumulated deferred taxes by quarter in Namely Payroll:
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Go to Reports > Date Range.
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Click the COVID-19 - Tax Deferrals Report.
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You’ll find the year-to-date accumulated amounts of the taxes you have deferred by quarter.
If you have deferred your California State Taxes, in Namely Payroll:
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Go to Reports > Date Range.
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Click the COVID-19 - California Tax Deferrals Report.
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You’ll find your organization’s deferred CA-SIT and CA-SDI taxes, as well as their estimated due date. These taxes are due 60 days after their associated pay date.