disaster - Linkenheimer LLP CPAs & Advisors

California Tax Updates for 9/24

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Changes are being made in how California determines whether a worker is an employee or an independent contractor. Under the CA Labor Code, effective 9/4/2020, a three-part test is required, commonly known as the ABC test, to determine the correct status of workers for purposes of following the Labor Code, the Unemployment Insurance Code and the wage orders of the Industrial Welfare Commission. The amended Labor Code also exempts certain specified occupations and business relationships from the application of the ABC test, in which case, a multifactor test previously adopted by the CA Supreme Court is applied.

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California issues a guide that explains taxpayer options for disaster relief. The CA Dept. of Tax and Fee Administration (CDTFA) has issued a three-page brochure, “Disaster Relief Tax Guide,” that provides information on the types of free assistance available from the CDTFA to taxpayers and feepayers when disaster strikes. Other taxing agencies that provide assistance include: the Franchise Tax Board, the Employment […]

By Linkenheimer LLP|2020-09-24T21:23:31+00:00September 24th, 2020|business, ca, CA tax, california, disaster, tax planning|0 Comments

California Tax Updates for 9/15

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Emergency tax relief is available for business owners and feepayers directly affected by declared disasters, through the California Dept. of Tax and Fee Administration (CDTFA). “Thank you to the President for your partnership and granting this urgent Major Disaster Declaration. California is battling two of the largest fires in our history and has seen nearly 600 new fires in the last week caused by dry lightning strikes,” reported Governor Gavin Newsom, adding, “CA is strong, we will get through this.” Relief may include extension of tax return due dates, relief of penalty and interest, or replacement copies of records lost due to disasters. Here’s more: https://bit.ly/2QrTV02

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California’s Sonoma County enacts emergency paid sick leave ordinance, for certain employers for COVID-19 related reasons. The ordinance took effect Aug. 18, 2020 and will remain in effect through 2020, unless the federal Families First Act (FFA) is extended. The ordinance now requires employers with 500 or […]

By Linkenheimer LLP|2020-09-15T20:17:59+00:00September 15th, 2020|ca, CA tax, california, disaster, employer, New Tax Laws|0 Comments

Do You Have Tax Questions Related To COVID-19? Here Are Some Answers

The coronavirus (COVID-19) pandemic has affected many Americans’ finances. Here are some answers to questions you may have right now.

My employer closed the office and I’m working from home. Can I deduct any of the related expenses?

Unfortunately, no. If you’re an employee who telecommutes, there are strict rules that govern whether you can deduct home office expenses. For 2018–2025 employee home office expenses aren’t deductible. (Starting in 2026, an employee may deduct home office expenses, within limits, if the office is for the convenience of his or her employer and certain requirements are met.)

Be aware that these are the rules for employees. Business owners who work from home may qualify for home office deductions.

My son was laid off from his job and is receiving unemployment benefits. Are they taxable?

Yes. Unemployment compensation is taxable for federal tax purposes. This includes your son’s […]

By Linkenheimer LLP|2020-09-03T20:02:59+00:00May 5th, 2020|business, deduction, deductions, disaster, employer, individuals, ira, irs, New Tax Laws, roth ira, small business, tax credit, tax deductions, tax implications, tax planning|0 Comments

The New COVID-19 Law Provides Businesses and Employees With More Relief

On March 27, President Trump signed into law another coronavirus (COVID-19) law, which provides extensive relief for businesses and employers. Here are some of the tax-related provisions in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

Employee retention credit

The new law provides a refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the COVID-19 crisis.

Employer eligibility. The credit is available to employers with operations that have been fully or partially suspended as a result of a government order limiting commerce, travel or group meetings. The credit is also provided to employers that have experienced a greater than 50% reduction in quarterly receipts, measured on a year-over-year basis.

The credit isn’t available to employers receiving Small Business Interruption Loans under the new law.

Wage […]

By Linkenheimer LLP|2020-09-03T20:03:12+00:00March 30th, 2020|business, disaster, employer, filing deadline, gift tax, individuals, irs, New Tax Laws, small business, tax deadlines, tax implications, tax planning, taxpayer|0 Comments

Getting Help With a Business Interruption Insurance Claim

To guard against natural disasters and other calamities, many companies buy business interruption insurance. These policies provide cash flow to cover revenues lost and expenses incurred while normal operations are limited or suspended.

But buying coverage is one thing — making a claim and receiving the funds is quite another. Depending on the scope of your loss, the insurer may enlist its own specialists to audit and reduce your claim. Fortunately, you can enlist a CPA to help you prepare a claim, quantify business interruption losses and anticipate your insurer’s challenges.

Major roles

There are two major roles your accountant can play in managing the claims process:

1. Point person. He or she can be the primary contact with the insurer, dealing with the typical onslaught of document requests. This leaves you free to run your business and bring it back up to speed.

By Linkenheimer LLP|2020-09-03T20:03:16+00:00March 9th, 2020|business, disaster|0 Comments