Hiring and Growth

May 14, 2021: 4 Good Reasons to File for a Tax Extension

Mohini Kundu Content Marketer, Gusto 
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May 14, 2021

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Programming note

Thanks for reading our newsletter! We’ll be taking a short hiatus for the rest of May and resuming our regular Friday sends on June 4. See you then!

How was year 1 for pandemic entrepreneurs?

One bright spot during COVID-19 was the surge in entrepreneurship to levels not seen in more than a decade. According to the US Census Bureau, 4.3 million new businesses were created in 2020—that’s nearly one million more than in 2019. On top of that, Gusto data shows that “pandemic entrepreneurs” were much more likely to be Black, Hispanic, or Latinx and female than in past years.

But how’s it going for them? Unfortunately, for 36% of entrepreneurs, it’s worse than expected—and the numbers are higher for some business owners of color.

Many of these businesses were also left out of pandemic relief programs, which prioritized existing businesses. But as the report states, “There is a substantial opportunity for policymakers to step in and expand access to financing for these entrepreneurs.”

Read more about pandemic entrepreneurs and how policymakers can support them in Gusto’s survey report.

4 good reasons to file for a tax extension

As Tax Day approaches, those of you who haven’t filed yet might be considering getting an extension. Filing extensions can be super helpful, for you and for any accountants who are helping you file. But, given the cost of late filing fees, is doing so worth it?

According to our partners at Bench, there are a few scenarios where it makes sense. Read about four reasons to miss the tax deadline, and how to file for an extension, in our full guide to filing late.

SMB Tax Credit Series Finale

For the last several weeks, we’ve highlighted some of the most helpful COVID-19 tax credits for small businesses. Time’s almost up to file your individual tax return (this year’s deadline is on Monday, May 17), but businesses can still take advantage of some of these credits throughout the year and beyond. Here’s a quick refresher of the tax credits we covered:

See a full list of COVID-19 tax credits here.

Relief spotlight

Paycheck Protection Program (PPP)

If you applied for a PPP loan under the wire and your loan has not yet been approved, don’t cancel it yet. There may be hope. The Small Business Administration (SBA) has several applications in its pipeline that are on “hold” due to issues. The SBA is giving lenders until May 15 to clear up the issues, and applications that are not cleared by May 15 will be wiped from the system. If you got your application in last-minute, it may still be reviewed after May 15, so hang in there!

Find the latest relief options in our Small Business Relief Finder.

Want more news and resources? Check out past editions in our archive.

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Mohini Kundu
Mohini Kundu Mohini Kundu is a news editor on the Gusto content team. She studied journalism at Northwestern University and started her career at The Huffington Post before embracing the #startuplife.

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