CA tax - Linkenheimer LLP CPAs & Advisors

California Tax Updates for 10/28

Update 1:

Required supplemental paid sick leave (SPSL) related to COVID-19 expired in California on Sept. 30, 2021. Specifically, that leave was required of employers with at least 26 employees. However, a number of CA localities continue to require some form of SPSL. They include Long Beach (for employers with at least 500 employees); Los Angeles city and county (also for employers with 500 or more employees); and Oakland (for employers of 50 or more workers). Sonoma County has a pending extension to a prior law.

Update 2:

California’s 529 college savings plan conforms to recent changes in the federal tax law. Those changes expanded allowable withdrawals from 529 plans to include expenses associated with participation in a registered apprenticeship program and student loan repayment, for taxable years beginning Jan. 1, 2021 or after. Also, for the same period, CA legislation disallows the deduction available on qualified education loan interest to the extent such interest is paid as a tax-free distribution from a […]

By Linkenheimer LLP|2021-10-28T17:25:37+00:00October 28th, 2021|ca, CA tax, california, college tax credit|0 Comments

California Tax Updates for 10/6

Update 1:

Recent legislation in California helps warehouse employees. The legislation prevents warehouse employers from terminating workers for failing to meet quotas that interfere with rest breaks, effective Jan. 1, 2021. Specific employers must give each nonexempt employee working in a warehouse distribution center a written description of each quota to which the employee is subject. Quotas must include the number of tasks to be done or materials to be produced or handled, the timeframe for completion, and possible consequences if quotas aren’t met. Employees won’t be required to meet a quota that prevents compliance with meal or rest periods, use of bathroom facilities, or health and safety laws.

Update 2:

California Governor Gavin Newsom is considering several payroll-related bills. Among them are a bill that would require food delivery platforms to pay any gratuities in full to the person delivering the product. Any tip paid on a pickup order would be paid in full to the food facility. Also being considered is […]

By Linkenheimer LLP|2021-10-06T22:45:57+00:00October 6th, 2021|CA tax, california|0 Comments

California Tax Updates for 9/29

Update 1:

A lucrative new business tax credit may help California’s small businesses hit hard by economic disruption in 2020 and 2021. Governor Gavin Newsom has signed the Main Street Small Business Tax Credit II bill providing financial relief to qualified businesses that have suffered unprecedented job losses. The credit, which can be up to $150,000 per employer, can be used against income taxes or by an irrevocable election, applied to sales and use taxes. To qualify, businesses must have had no more than 500 employees on Dec. 31, 2020, whose wages were subject to CA withholding laws. They must also have seen a decrease of at least 20% in gross receipts. Here are the details: https://bit.ly/3CA61dy

Update 2:

The California Trucking Association (CTA) seeks help from the U.S. Supreme Court. In 2020 the CA worker classification law (AB5) took effect. It applies the ABC test to determine whether workers are employees or independent contractors, with […]

By Linkenheimer LLP|2021-09-29T22:53:20+00:00September 29th, 2021|business, CA tax, covid-19, tax credit|0 Comments

California Tax Updates for 9/23

Update 1:

All California taxpayers who have an active Power of Attorney (POA) will soon be getting a letter from the state Franchise Tax Board (FTB). The letter provides a list of the taxpayer’s active POAs with the FTB and the representative relationship on the taxpayer’s account. The new form is intended to keep taxpayers informed of their POA relationships, the level of access the POAs have (limited or full) and the expiration date of the declaration. The form should not be used to revoke a POA. Contact us with questions.

Update 2:

Property owners in California can apply for property tax deferment for the 2021-2022 tax year. The CA Property Tax Postponement (PTP) Program is administered by the Controller’s Office. It allows qualified homeowners to postpone the property tax on their primary residence. Applicants must be seniors, blind, or have a disability and meet certain income and equity requirements. Funding for the PTP Program is limited, so applications will be processed in […]

By Linkenheimer LLP|2021-09-23T17:05:34+00:00September 23rd, 2021|CA tax, california, ftb, property tax|0 Comments

California Tax Updates for 9/16

Update 1:

Moving out of California? The CA Franchise Tax Board (FTB) acknowledges that a variety of factors have led to many individuals and businesses leaving CA. If you do, be sure to update your address. It’s common, said the FTB, for taxpayers to move after filing a tax return. Without an updated address on file, taxpayers may be unreachable if the FTB needs more information to resolve an issue with a return or payment. Each year, says the FTB, thousands of refunds are returned to them because of a bad address, leaving issues unresolved. Failing to respond to a notice could bring additional penalties, fees and collection action. Contact your Linkenheimer CPA with questions.

Update 2:

Coming soon to California businesses, the Homeless Hiring Tax Credit. The CA Franchise Tax Board (FTB) has announced details of this newly enacted credit. It will be available to qualifying taxpayers who hire new employees deemed to be eligible homeless individuals. Employers may receive $2,500 to […]

By Linkenheimer LLP|2021-09-16T21:18:04+00:00September 16th, 2021|ca, CA tax, california, ftb, New Tax Laws|0 Comments