Mid-Market and Tenderloin may not be part of San Francisco’s Financial District per se, but are economically significant nonetheless. The presence of Mid-Market’s most notable resident, Twitter, is enough to influence the local financial atmosphere. Not surprisingly, Mayor Ed Lee plans to keep it that way.
In 2011, Lee enacted an ordinance that allowed select businesses in Mid-Market and nearby Tenderloin to take advantage of tax breaks. This measure is officially called the Central Market/Tenderloin Payroll Expense Tax Exclusion, but it’s popularly known as the “Twitter tax break.” Businesses within the ordinance’s specified areas and buildings are eligible.
The city controller’s office also reported a surge of new businesses in these areas. Patrick Hoge of the San Francisco Business Times reports:
Businesses in the Central Market and Tenderloin areas paid $7.6 million more in payroll tax in 2013 than in 2010. That was $7.1 million more than what the total would have been if growth had been at the same rate as it was in the rest of the city during the same period. There were also 61 more businesses in 2013 than in 2010, 32 more than there would have been if growth was the same as it was in the rest of the city.
Under the so-called Twitter tax break, businesses located in the specified areas and buildings can claim their payroll tax break “during any of the six years in an eight-year period.” Companies with payroll expenses of over $1 million can negotiate for community benefits agreements (CBA) with the city, which can range from cash donations for nonprofits to volunteer hours.
Accurate computation of payroll expenses, in this case, is key to profitability. There’s nothing stopping the city from going over your ledgers and journals regarding how much you spent for salaries and taxes. Fortunately, you have reliable Sage Quantum software that can—to quote Sage itself—”keep up with changing tax laws.”
Formerly known as Peachtree, Sage Quantum’s easy-to-use interface helps accounting departments take note of all expenses more efficiently, in keeping with local tax policies. The software also reduces your risk of shortchanging your workers due to input mistakes, which should make payroll processing a cinch.
Seize the opportunity to increase your income and decrease your expenses. You can get Sage Peachtree Quantum from a premier reseller such as Quantum Buyers. Whether you need the five-user version or the Sage 50 line that supports up to 40 users, count on a premier reseller to provide excellent customer service and technical support.
(Source: “Report: San Francisco’s payroll tax break helped transform Mid-Market,” San Francisco Business Times, October 27, 2014