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Two Important Updates for Massachusetts Businesses

March 28, 2019

Massachusetts businesses…the Department of Revenue (DOR) has changed requirements for the small business energy exemption and paid family and medical leave. Don’t up on your requirements today

Attention Massachusetts businesses…The Massachusetts Department of Revenue (DOR) recently sent out news about its latest initiatives and reminders about upcoming deadlines. Make sure you’re up to date on all your requirements!

March 31st deadline for small business energy exemptions

In certain cases, energy sales are exempt from taxes for qualifying small businesses.

A qualifying small business is one that

  • Has had gross income of less than $1 million in the prior year,
  • Anticipates less than $1 million in the current year,
  • Has 5 or fewer full-time employees and
  • Is the sole user of the energy product.

As of January 1,, 2019, the process for qualifying for a small business energy tax exemption has changed. Instead of submitting Form ST-13 to your energy provider, the process is now automated through MassTaxConnect, as covered in our blog, Massachusetts Residents: Here’s How to Pay Taxes through MassTaxConnect. Through this process, a business receives their Small Business Energy Exemption Certificate, which is effective for two years (before it was only effective for one).

To give small businesses time to become more familiar with the new electronic exemption process, all 2018 small business energy exemptions are automatically extended to March 31, 2019.

If this applies to you, make sure you request the new exemption by March 31st to avoid sales tax!

Family Medical Leave Act (FMLA)

Check out our blog, New Tax Credit for Paid Family and Medical Leave.

Under Section 45S of the Tax Cuts and Jobs Act (TCJA) employers who pay qualifying employees at least 50% of their salary while on family and medical leave (for up to 12 weeks in a year) qualify for a general business credit.

Starting April 29th, covered employers and business entities who provide paid family and medical leave (FMLA) benefits equaling or exceeding those offered under the Commonwealth’s plan can apply for Private Plan Exemptions. You can file an exemption request through MassTaxConnect, and requests will be accepted on a rolling basis. Once approved, Private Plan Exemptions are valid for one year.

Benefits of MassTaxConnect

There are many benefits to MA’s relatively new e-filing system. This includes….

  • Immediate notification of important information from the DOR
  • Secure messages can be sent to the DOR
  • Taxpayers can grant account access to a third party to ensure that a tax professional is aware of their tax status.

Need assistance with your filing? We’re here to help. Contact us.

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