2023 San Francisco Tax Deadlines

• JAN 1: San Francisco companies with 20+ employees: Post Paid Parental Leave Ordinance (PPLO) and Health Care Security Ordinance (HCSO) posters and begin compliance. Keep in mind that SB-83 is a California law that extends Paid Family Leave benefits from 6 weeks to 8 weeks for claims starting on or after July 1, 2020.
• JAN 31: Send 1099s to contractors. Send W2s to employees. E-file 1099-MISC for nonemployee compensation with the IRS on this date.
• JAN 31: File Form 8809 for a 30-day extension to file W2s and 1099-MISC for nonemployee compensation.
• JAN 31: Send 1095-B and 1095-C forms to Employees.
• JAN 31: Claim R&D Tax Credits on Form 941, and deadline to file annual Federal Unemployment Tax Act (FUTA) return on Form 940 .
• MAR 1: IRS ACA Compliance 1094-B, 1095-B, 1094-C and 1095-C paper filings are due (due April 1 if e-filing). File Form 8809 for a 30-day extension.
• FEB 28: SF Annual Gross Receipts Tax filing and payment deadline. Gross Receipts tax rates in San Francisco can vary depending on a company’s gross receipts – and business activity. Work with your accountant to determine if you need to file this; the limits are quite low so many funded startups will need to file. 
• MAR 1: Delaware Annual Franchise Report filing due: Pay a minimum of $400, which increases if you have significant funding.
• MAR 2: IRS 30-day automatic extension: provide Form 1095-B and Form 1095-C to employees.
• MAR 31: IRS ACA Compliance 1094-B, 1095-B, 1094-C and 1095-C filings are due (e-file). 
• MAR 31: 1099s and W2s must be e-filed with the IRS by this due date.
• APR 1: SF 571-L Business Property Tax filing due. Initial deadline. According to the SF Assessor’s office, California requires businesses to report their taxable property (machinery, equipment, fixtures, etc.) via a Form 571-L. 
• APR 18*: C Corp Form 1120 Income Tax Return due. Can extend to October 16*.
• APR 18*: File the R&D Tax Credit Form 6765 with your tax return. Can extend the tax deadline to October 16*.
• APR 18*: File the CA Franchise Tax due. Pay $800.
• APR 18*: Federal Quarterly Estimated Tax first installment.
• APR 30: Q1 Estimated SF Gross Receipts Tax installment payment.
• APR 30: Claim R&D Tax Credits on Form 941.
• MAY 7: SF 571-L Business Property Tax due. Final date to avoid 10% penalty.
• MAY 31: Last day to electronically file the Form 571-L Business Property Statement. A 10% penalty will be added.
• MAY 31: SF Business Registration Renewal filing due. Payment calculated on gross receipts.
• JUN 1: Delaware Quarterly Estimated Franchise Tax. Pay 40% of estimated annual amount (if annual amount expected to exceed $5,000)
• JUN 15: Federal Quarterly Estimated Tax second installment.
• JULY 31*: Q2 Estimated SF Gross Receipts Tax installment payment deadline.
• JUL 31: Claim R&D Tax Credits on Form 941 .
• AUG 31: SF 571-L Business Property Tax payment due.
• SEP 1: Delaware Quarterly Estimated Franchise Tax. Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000)
• SEP 15: Federal Quarterly Estimated Tax third installment.
• OCT 16*: C Corp Form 1120 Income Tax Return final due date if extension was filed.
• OCT 31*: Q3 Estimated SF Gross Receipts Tax installment payment.
• OCT 31*: Claim your R&D Tax Credits on Form 941.
• DEC 1: Delaware Quarterly Estimated Franchise Tax. Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000)
• DEC 15: Federal Quarterly Estimated Tax fourth installment.
• ROLLING: CA Statement of Information due. Pay $25.

*Note: The due date for filing federal tax returns in 2023 falls on April 18, rather than April 15. Normally, when the tax deadline is on weekend or holiday, the deadline is moved to the next business day. However, Monday, April 17, is Emancipation Day, a holiday recognized in the District of Columbia, where the Internal Revenue Service is headquartered. The federal extension deadline for 2023  is October 16, since October 15 falls on a Sunday. 

How Much Does a Startup Tax Return Cost? Try Kruze Consulting’sTax Preparation Pricing Tool.

If your Delaware C-Corp San Francisco funded startup needs tax helpcontact us today!

SAN FRANCISCO, STARTUPS AND TAXES

San Francisco was rated the best city in the world for startups in 2022, according to data from Stockapps.com. The city is home to more than 8,000 tech startups. It’s easy to see why startups are attracted to San Francisco’s booming startup economy, since San Francisco offers a culture of innovation, lots of talented employees, world-class universities, and an extensive network of venture capital investors. 

The most important taxing authorities for companies in San Francisco are: 

• State of California Franchise Tax Board 
• State of California Employment Development Department 
• City and County of San Francisco Treasurer & Tax Collector

In 2023, San Francisco has many unique corporate tax deadlines beyond the traditional April 18th tax return date. Important filing deadlines include the San Francisco Gross Receipts filing deadline of February 28 and the April 1st business property tax filing. Estimated tax payments due dates include April 30th, August 2nd and November 1st. See the calendar above for a more complete list.

San Francisco Corporate Taxes

San Francisco has a reputation of… how shall we say.. not being afraid to level taxes on businesses. These are in addition to the California corporate taxes, which are a flat 8.84% in 2022 (connect with your tax advisor, as this corporate rate may vary depending on your business’ entity type and industry; most tech startups that we work with in SF will pay around 8.84%). SF also has a gross receipts tax, which levels taxes on the revenue a business earns - this is different than the federal or California tax rates, which are based on taxable income.  

SF Gross Receipts Tax

The San Francisco Gross Receipts Tax is a tax on the gross receipts of businesses operating within the city of San Francisco. The tax rate varies depending on the type of business and the amount of gross receipts. The tax is typically reported and paid on a quarterly basis. 

What are Gross Receipts?

Basically, revenue earned in SF. According to the SF Treasurer’s office, gross receipts are “Gross receipts include but is not limited to all amounts that constitute gross income for federal income tax purposes. Gross receipts, including advance payments, shall be included in a taxpayer’s gross receipts at the time such receipts are recognized as gross income for federal income tax reporting purposes.”

2022 Tax Deadlines for San Francisco Startups

2022 startup tax deadlines are supplied for reference purposes only, and should not be used when making decisions in 2023 or beyond. Always consult your tax professional, and see our disclaimer below.

• JAN 31: Send 1099’ s to Contractors. Send W2’s to Employees. 1099-NEC for nonemployee compensation must also be e-filed to IRS on this date.
• JAN 31: Send 1095-B and 1095-C forms to Employees.
• JAN 31: Claim Research and Development Tax Credits on Prior Year Q4 Form 941, and file annual FUTA return on Form 940.
• FEB 28: W-2 and 1099-MISC, 1099-NEC filings are due on this deadline if paper-filing (due MAR 31 if e-Filing). File Form 8809 for a 30-day extension.
• FEB 28: IRS ACA Compliance 1094-B , 1095-B 1094-C and 1095-C filings are due on this deadline (if paper-filing, due MAR 31 if eFiling). File Form 8809 for a 30-day extension.
• FEB 28: SF Annual Gross Receipts Tax filing & payment deadline. Gross Receipts tax rates in San Francisco can vary depending on a business’ gross receipts - and business activity. Work with your accountant to determine if you need to file this; the limits are quite low so many funded startups will need to file. A 60-day extension is available for filing the return, but not paying any tax due.
• MAR 1: Delaware Annual Franchise Report filing deadline: Pay a min. of $400, +more if you have significant funding.
• APR 1: 571-L Business Property Tax filing due. Initial deadline.
• APR 10: Deadline to pay second installment of property tax bill to San Francisco County
• APR 15: File the CA Franchise Tax due with Form 100. Pay $800. Extension for time to file return (not pay tax) can be filed.
• APR 15: Q1 CA Form 100-ES Q1 Estimated Tax due (30% of estimated tax).
• APR 15: C Corp Form 1120 Tax Return deadline. Can extend to OCT 15 with submission of form 7004.
• APR 15: File the R&D Tax Credit Form 6765with your tax return. Can extend to OCT 15 as mentioned above.
• APR 15: Federal Quarterly Estimated Tax 1st installment.
• APR 29: Q1 Estimated SF Gross Receipts Tax installment payment.
• APR 29: Claim R&D Tax Credits on Q1 Form 941.
• MAY 7: 571-L Business Property Tax filing due. Final date to avoid 10% penalty.
• JUN 1: Delaware Quarterly Estimated Franchise Tax deadline, Pay 40% of estimated annual amount (if annual amount expected to exceed $5,000).
• JUN 15: Federal Quarterly Estimated Tax 2nd installment.
• JUN 15: Q2 CA Form 100-ES Q1 Estimated Tax due (40% of estimated tax). Note, CA does not require a Q3 installment.
• JUL 29: Claim R&D Tax Credits on Q2 Form 941.
• JUL 29: Q2 Estimated SF Gross Receipts Tax installment payment deadline.
• AUG 31: SF 571-L Business Property Tax payment due.
• SEP 1: Delaware Quarterly Estimated Franchise Tax deadline, Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000).
• SEP 15: Federal Quarterly Estimated Tax 3rd installment.
• OCT 15: C Corp Form 1120 Tax Return final due date if extension was filed.
• OCT 31: Claim your R&D Tax Credits on Q3 Form 941.
• OCT 31: Q3 Estimated SF Gross Receipts Tax installment payment.
• NOV 15: File the CA Franchise Tax due with Form 100 (if extended).
• DEC 1: Delaware Quarterly Estimated Franchise Tax, Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000).
• DEC 10: Deadline to pay first installment of property tax bill to San Francisco County.
• DEC 15: Federal Quarterly Estimated Tax 4th installment.
• DEC 15: Q4 CA Form 100-ES Q1 Estimated Tax due (30% of estimated tax).
• ROLLING: CA Statement of Information due. Pay $25.