California and Colorado SaaS Sales Tax Changes: What Software Companies Need to Know
California and Colorado will begin taxing many SaaS transactions on January 1, 2027. Software companies should start evaluating the sales tax implications now.
Update June 8th, 2020: Unemployment Insurance: 120-Day Deadline Extension for Nonprofits AAFCPAs would like to make clients aware of a provision in Section 2103 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provides emergency unemployment relief...
AAFCPAs would like to make clients aware of a provision in Section 2103 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provides emergency unemployment relief for governmental entities and nonprofit organizations.
Emergency Unemployment Relief (Section 2103): The Act provides for additional funds to be transferred to states from the federal unemployment account to be used solely to reimburse Section 501(c)(3) organizations, government agencies and Indian tribes for one half of amounts paid for unemployment benefits between March 13, 2020, and March 14, 2021.
Nonprofits will be reimbursed for 50% of the costs incurred through March 14, 2021 to pay unemployment benefits. This provision applies to organizations that have opted not to pay unemployment taxes, but instead reimburse states for benefits paid to former employees (self-insured nonprofits).
Details and regulations will be forthcoming from the Department of Labor and the Internal Revenue Service.
MA Update: On May 26th Governor Baker signed into law S.2618, which provides additional unemployment insurance flexibilities to those affected by COVID-19. The law includes a 120-day delay in claim payments owed by nonprofits to the Commonwealth’s Unemployment Insurance trust. The law also exempts employers’ experience rating (which determines the amount of quarterly taxes that contributory organizations pay) from being impacted by the surge in COVID-19 related claims.
It is important to note that while the CARES Act was enacted on March 27th, states have needed additional time to re-vamp their procedures and their online portals to practically enact these provisions.
AAFCPAs has formed a Task Force dedicated to studying and advising clients on the business implications of the Coronavirus Aid, Relief and Economic Stimulus (CARES) Act legislation, signed by President Trump on Friday, March 27th, 2020. Our CARES Task Force includes senior leadership and advisors from diverse segments of our organization, bringing the necessary talent together to best advise on the changing dynamics caused by the Coronavirus. Learn more. >>
California and Colorado will begin taxing many SaaS transactions on January 1, 2027. Software companies should start evaluating the sales tax implications now.
The systems and processes that helped your organization reach one stage of success are not always the ones that support the next.
Beginning in 2026, eligible Massachusetts pass-through entities can elect the new Chapter 63E PTE excise. Business owners subject to the state's surtax should understand how...