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March 24, 2020
2020-0675

California extends employment tax filing and payment by 60 days, upon request, for employers affected by COVID-19

Governor Newsom's Executive Order N-25-20 requires the California Employment Development Department (EDD) to delay the deadline for state tax filing by 60 days for individuals and businesses unable to file on time based on compliance with public health requirements related to COVID-19 filings.

According to the EDD, employers experiencing a hardship as a result of COVID-19 may request up to a 60-day extension of time to file their state payroll reports and/or deposit state payroll taxes without penalty or interest. A written request for extension must be received within 60 days from the original delinquent date of the payment or return.

Employers should mail the letter and tax report or payment to the address specified on their filing form. If an employer has already been charged a late filing or payment penalty that it believes may qualify for this extension, the employer should send a written request to Employment Development Department, PO Box 826880, Sacramento, CA 94280–0001. (EDD tax branch news #432.)

On March 19, 2020, California Governor Newsome became the first US state to order all residents to stay home (shelter in place) except to get food, care for a sick relative or friend, seek necessary healthcare or go to an essential job. Residents that must go out are instructed to keep at least six feet of distance from others. (Executive order N-33-20; governor's release.)

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

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EY Payroll News Flash