Quarterly Installment: Gross Receipts Tax and Payroll Expense Tax
Frequently Asked Questions
As required by our Business and Tax Regulations Code Section 6.9-3: except as provided in Section 6.9-3(a)(3)(D) with respect to estimated tax payment of the gross receipts tax, every person or combined group liable for payment of the payroll expense tax (Article 12-A) or the gross receipts tax (Article 12-A-1) (including the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1) shall make three estimated tax payments, in addition to the annual payments in Section 6.9-3(a)(4) as follows: (A) Due Dates. The first, second, and third estimated tax payments for a tax year shall be due and payable and shall be delinquent if not paid on or before, April 30*, July 31, and October 31, respectively, of that tax year. Estimated tax payments shall be a credit against the person’s or combined group’s total annual payroll expense tax or gross receipts tax (including the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1) liability, as applicable, for the tax year in which such estimated tax payments are due. *NOTE: Since April 30, 2017 falls on a Sunday, by law the first quarter deadline is extended to May 1, 2017.
All quarterly estimated payments will be billed and posted in March. You may pay all at one time or each by their respective due dates.
New for 2017 Quarterly Estimated Tax Payments:
The San Francisco Board of Supervisors passed Ordinance 026-17 on February 10, 2017. The Ordinance requires quarterly estimated payments for payroll expense taxes and gross receipts taxes, and expressly permits taxpayers to apply refunds of the business registration fee, the payroll expense tax and the gross receipts tax to subsequent tax periods, among other changes. Of note:
The required quarterly estimated payments are each 25% of the prior year or current year tax liabilities, whichever is less.
The penalty for failing to pay these quarterly amounts is 5% of the underpayment, with no interest. Penalties will be posted with the Annual Return in February 2018.
Lessors of residential real estate with less than $1,060,000 in gross receipts are exempted from quarterly estimated payments in 2017, and will pay their full tax liability with their Annual Return.
If you instructed our office to apply an overpayment from 2016 to future tax obligations, those credited amounts are reflected in the Summary Table on your notice.
I haven't received a quarterly notice: Common reasons for not receiving a notice are:
Landlords with less than $1,060,000 in gross receipts are exempted from estimated tax payments and will not receive a quarterly estimated tax notice.
Your address may be incorrect. Go to http://sftreasurer.org/account-update to confirm or change your mailing address of record.
You may not have a 2017 Quarterly Estimated Tax obligation. You may view your outstanding obligations at: https://etaxstatement.sfgov.org/onlinepayment/
Is there an online quarterly filing form? There is no filing form.
To Pay Online: Go to https://etaxstatement.sfgov.org/onlinepayment/ You will need:
Seven (7) digit Business Account Number.
Last four (4) digits of your business Tax Identification Number (Federal EIN or SSN).
Eight (8) character Online PIN.
Why do I see multiple estimated payment obligations in the Payment Portal? All quarterly estimated payments have been posted to your account. The first, second, and third quarterly installments shall be due and payable, and shall be delinquent if not paid on or before, April 30, July 31, and October 31, respectively, of that tax year. You may pay all at one time or each by their respective due dates. *NOTE: Since April 30, 2017 falls on a Sunday, by law the first quarter deadline is extended to May 1, 2017.
What if I would like to pay a different amount? The required quarterly estimated payments are each 25% of the prior year or current year tax liabilities, whichever is less. You may lower the amount of your payment in the Payment Portal.
If I filed an Extension Request, do I need to pay a first quarter estimated payment? If you filed an extension for your 2016 Annual Return, your estimated payments have been calculated based the sum of your payments for 2016. Due to the extension deadline, you will need to pay your full first quarter estimated payment, even if you have requested our office to apply an overpayment to future obligations in your Annual Return.
Why was my request to apply my 2016 overpayment not approved? Your request was not approved because you did not have an overpayment. Or it may have been approved and applied to a prior obligation.
What if I do not agree with my overpayment being partially or fully applied to a prior obligation? ? If you disagree with the decision to apply your overpayment to an outstanding obligation, you may be entitled to file a Claim for Business Tax Refund with the Controller's Office. All claims must be directed to the City's Controller and must be mailed to: Controller’s Office, Claims Division, 1390 Market St., San Francisco, CA 94102-5402. Tax refund claim forms are available on the City Attorney of San Francisco’s website: http://www.sfcityattorney.org/claims/
Remit your payment and remittance detail to: San Francisco Tax Collector, P.O. Box 7425, San Francisco, CA 94120-7425
For Technical Issues go to: http://sftreasurer.org/onlinefilingissues
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