Hello All,
April was a fun month!
Q1 has come and gone and most of your big regulatory deadlines (business license renewals, franchise taxes, annual reports, etc...) and tax return filings are done. Unless you filed an extension or used the extended filing period if you were in a federally declared disaster area, you are clear of the major tax & filing work for the rest of 2025. Focus on your business and let the good times roll!
Upcoming deadlines
June 1st [DE clients only] - Annual franchise tax for DE LLCs are due.
June 15th- Q2 2025 estimated tax payments are due for individuals and C Corporations. The estimates will be sent to you individually with instructions on how to make payment to federal and state agencies, as applicable.*
* Los Angeles county residents can file & pay as late as October 15th due to the January 2025 fires) and TN state residents can pay as late as November 3rd due to the April 2025 tornadoes
Beneficial Ownership Information Reporting - no longer required for U.S. companies (for now)
In March 2025, the Financial Crimes Enforcement Network (FinCEN) exempted U.S. companies and individuals from disclosing the owners for beneficial ownership information (BOI) reporting. However, there was no exemption for foreign companies who are registered to work in the United States, unless if owned by U.S. citizens.
This was an interim ruling by FinCEN and not final. Since this was passed under the Corporate Transparency Act of 2021 in Congress, the ruling by FinCEN can be legally challenged. If it is found that FinCEN is unable to exempt U.S. owners and businesses from reporting, then BOI will once again be required.
The bottom line is that BOI reporting is currently on hold until the U.S Congress eliminates or modifies the 2021 Corporate Transparency Act or FinCEN's interim ruling is not overturned. I will keep you posted....
New QuickBooks feature: Customer pays the ACH fee
QuickBooks has rolled out a new feature where your customer/client will pay the ACH processing fee when paying your invoice.
Currently many of you using QuickBooks invoices allow your clients to pay their invoices via ACH and you incur a 1% fee (note: if you had this feature enabled prior to 2024, it was capped at $10 or $15, now there is no cap). If you accept your customers to pay you via credit card or PayPal, there is an approximate 3% fee. The fee is paid by you; not by your client.
Now, you can enable "Your customer pays the fee" in your sales settings. This way, your client will pay a $25 flat ACH fee and you receive 100% of your invoiced amount within 5 business days. This compares to currently paying 1% on ACH fees and getting the cash within 2 business days. QuickBooks currently does not allow the option of customers paying a fee if they want to use a credit card or Paypal; that fee is still paid by you.
If you want to know more and want to enable this for your business, let me know.
New Gusto feature: Payroll approvals
A new feature was rolled out for Gusto users to allow full access admins to approve and submit payroll. If you are a business with multiple employees and you have an HR/Payroll supervisor/manager who inputs hours for payroll, but you (the owner) want final say on the debit, you can now enable approvals in Gusto. This process control can reduce the risk of overpayment and add a well-intended layer of review prior to submission.
Sales tax collections (for clients who collect and file state sales tax reports)
If you are selling tangible products or services associated with tangible products, you are likely responsible for collecting sales tax in the state of where you have a physical presence. If you sell out of state, you may be first required to achieve "nexus" (i.e. a significant presence usually defined by gross sales volume) before you have to collect sales tax. Registration for a reseller's permit would be required with a state agency and reporting & remitting the sales tax collected may be monthly, quarterly, or annual as determined by your state agency.
You have to remit 100% of whatever sales tax you collected from your customers. If you over collected sales tax, you either have to refund your customer or remit it to the state. If you under collected sales tax, you are responsible for paying the difference. You are not allowed to keep the over collected sales tax otherwise you risk penalties and imprisonment. Sales tax is not allowed to be considered additional income earned.
Please reach out if you have any questions on the contents of this newsletter and its effect on your business.
Kind regards.--
Neel Sodha, CPA CPA License No. 102833
213-399-3820
