CA tax - Linkenheimer LLP CPAs & Advisors

California Tax Updates from 8/25

Update 1:

Employers in California counties plagued by wildfires get payroll tax relief. The CA Employment Development Dept. (EDD) has announced tax relief for employers in Trinity, Tehama and Shasta Counties, directly affected by the McFarland, Monument and Dixie Fires. Those employers may request up to a 60-day extension of time from the EDD to file their state payroll reports and deposit payroll taxes, without penalty or interest. A written request for an extension must be received within 60 days from the original delinquent date of the payment or return. Here’s more: https://bit.ly/389teWV

Update 2:

If you’re a California resident who owes estimated CA tax payments, your next payment due date is rolling up fast. By Sept. 15, the third installment of your 2021 state tax is due. Generally, you must make estimated payments if you expect to owe at least $500 for 2021, after you subtract withholding or credits you may have, or face penalties. […]

By Linkenheimer LLP|2021-08-25T20:12:59+00:00August 25th, 2021|CA tax, california, disaster, estimated tax payments, fire, Fire Relief Info|0 Comments

California Tax Updates from 8/20

Update 1:

Three southern California grocery stores will pay fines of $447,836, for violations of certain COVID-19-related employee benefits. The CA Labor Commissioner’s Office has cited three El Super stores for failing to inform employees of their rights to supplemental paid sick leave (SPSL). In addition, employees who had COVID-19 symptoms were forced to work while sick or were told to file for unemployment while under quarantine or isolation. Others waited months to be paid. The violations affected 95 El Super workers. Employers having more than 25 workers must provide those affected by COVID-19 with up two weeks of SPSL. This law remains in effect until Sept. 30, 2021.

Update 2:

New information is available regarding the California Competes Tax Credits. The CA Governor’s Office of Business and Economic Development (GO-Biz) has revised its announcement about the allocation of these credits for fiscal year 2021-2022. The total amount to be allocated is now $394,707,469 (up from $284,707,469). The allocation dates haven’t changed and […]

By Linkenheimer LLP|2021-08-20T18:10:01+00:00August 20th, 2021|ca, CA tax, california, covid-19, tax credit|0 Comments

California Pass-Through Entity Tax

Governor Gavin Newsom signed Assembly Bill 150 this past July. The new bill establishes an elective pass-through entity (PTE) tax framework that will allow California taxpayers to obtain relief from the current $10,000 limit on individual state and local tax deductions.

Qualifying pass-through entities include partnerships (publicly traded partnerships aren’t included) or S Corporations.

Qualifying entities must exclusively have partners/shareholders/members that are corporations, individuals, fiduciaries, estates, or trusts.
For tax years beginning on or after January 1, 2021 and before January 1, 2022
- PTE tax is due on or before the filing date of the original return. (March 15, 2022 for 12/31/2021 year-end entities)
For tax years beginning on or after January 1, 2022 and before January 1, 2026
- The greater of 50% of the elective tax paid in the prior year or $1,000 is due by June 15^th of the tax year.
- The remaining PTE tax is due on or before the filing due date of the original return.
The election must be made every year but once made, it is irrevocable.
The tax is 9.3% of qualified net income.
The PTE tax is in addition to other entity level taxes […]

By Linkenheimer LLP|2021-08-10T23:06:09+00:00August 10th, 2021|ca, CA tax, california, entity|0 Comments

California Tax Updates for June 30th

Update 1:

Local minimum wages in several California areas will increase on July 1, 2021. The per hour rates include the following: Berkeley ($16.32); Emeryville ($16.97); Fremont ($15.00 for small employers, $15.25 for large employers); Long Beach ($15.69, and for concessionaire workers $15.32); Los Angeles City ($15.00, and $17.65 for hotel workers); Los Angeles County ($15.00 for small employers); Malibu ($15.00 for small and large employers); Milpitas ($15.65); San Francisco ($16.32); Santa Monica ($15.00 for small employers and $17.64 for hotel workers).

Update 2:

On July 11th, Californians receiving unemployment benefits will again be required to search for work. The CA Employment Development Department (EDD) is currently sending notices to claimants to inform them of the reinstatement of this requirement. The search for work has been a mandatory part of the unemployment insurance program since its inception but has been suspended during the pandemic. As of July 11th, most claimants will again need to be able to search for work to maintain eligibility. […]

By Linkenheimer LLP|2021-07-02T17:25:28+00:00July 2nd, 2021|business, CA tax, california|0 Comments

California Tax Updates for 4/21

Update 1:

Employers in California who have questions about the Paycheck Protection Program (PPP) get some answers. The April edition of the CA Franchise Tax Board’s “Tax News” addresses whether CA will conform to the federal rules with respect to the PPP, which is part of the CARES Act. The Tax Board said that while income from PPP loan forgiveness is excluded for CA purposes, any credit or deduction allowed for any amount paid or incurred should be reduced by the amount of the exclusion allowed under the PPP. If other changes in CA law related to the PPP arise, the Tax Board will present the new information in its “Tax News.” Here’s more: https://bit.ly/2QsCO19

Update 2:

The 2020 tax year has brought changes to many California tax forms and instructions. That’s why the CA Franchise Tax Board (FTB) has created a tax forms webpage to describe the revisions it has made. Most of the […]

By Linkenheimer LLP|2021-04-21T23:34:09+00:00April 21st, 2021|business, ca, CA tax, california|0 Comments