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E-file and E-pay Mandate for Employers (Assembly Bill 1245)

New state law mandates electronic submission of tax returns, wage reports, and payroll tax deposits for all employers.

Beginning January 1, 2017, employers with 10 or more employees will be required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department (EDD). All remaining employers will be subject to this requirement beginning January 1, 2018. Any employer required under existing law to electronically submit wage reports and/or electronic funds transfer to the EDD will remain subject to those requirements. For more information, visit FAQs – E-file and E-pay Mandate for Employers.

Benefits of Electronic Filing and Payments

Increases data accuracy.
Protects data through encryption, which is safer and more secure than paper forms.
Reduces paper and mailing costs.
Eliminates lost mail.
Faster processing of returns and payments.

File and Pay Electronically with e-Services for Business

Employers can use e-Services for Business to comply with the e-file and e-pay mandate. e-Services for Business is a fast, easy, and secure way to manage your employer payroll tax accounts online. With e-Services for Business, you can:

Register for an employer payroll tax account number.
File returns and reports.
Make payroll tax deposits and pay other liabilities.
View and update account information.
And […]

By Linkenheimer LLP|2020-09-03T20:05:10+00:00July 26th, 2016|employer|0 Comments

Employers Need to Understand Their Employment Tax Responsibilities

The IRS has issued a fact sheet to remind business owners how critical it is to understand the various types of employment-related taxes they may be required to deposit and report. This fact sheet provides information on some of the more common employment tax topics posed by business owners, including worker classification, Voluntary Classification Settlement Program (VCSP), fringe benefits, officer compensation, and backup withholding and information return penalties. The fact sheet is available at https://www.irs.gov/uac/Newsroom/General-Employment-Tax-Issues .

If you have any questions, please contact your Linkenheimer CPA at (707) 546-0272.

By Linkenheimer LLP|2020-09-03T20:05:20+00:00November 18th, 2015|business, employer, irs|0 Comments

Paid Sick Leave Update

Entitlement:
An employee who, on or after July 1, 2015, works in California for 30 or more days within a year from the beginning of employment is entitled to paid sick leave. Paid sick leave accrues at the rate of one hour per every 30 hours worked, paid at the employee’s regular wage rate. Accrual shall begin on the first day of employment or July 1, 2015, whichever is later. Accrued paid sick leave shall carry over to the following year of employment and may be capped at 48 hours or 6 days. However, subject to specified conditions, if an employer has a paid sick leave, paid leave or paid time off policy (PTO) that provides no less than 24 hours or three days of paid leave or paid time off, no accrual or carry over is required if the full amount of leave is received at the beginning of each year in accordance with the policy.
Usage:
An employee may use accrued paid sick days beginning on the 90th day of employment. An employer shall provide paid sick days upon the oral or written request of an employee for themselves or a family member for the diagnosis, care or treatment of an existing health condition or preventive care, or specified purposes […]

By Linkenheimer LLP|2020-09-03T20:05:27+00:00June 22nd, 2015|employer|0 Comments

FUTA Tax – Credit Reduction for 2012

For the second year running, California is a credit reduction state. This means “we” have taken loans from the federal government to meet state unemployment benefit liabilities and have not repaid those loans within the allowable time frame.

The result of being an employer in a credit reduction state is higher tax due on the Form 940. For the year ended December 31, 2012, the calculation results in $42 per employee as additional FUTA liability, bringing total FUTA tax per employee to $84 for the year. The increased liability is considered incurred in the fourth quarter and is due by January 31 (with other annual payroll report filings). For those filers that we process, explanation is provided with their reports. Those who run reports off Quickbooks are often puzzled that the balance due with Form 940 is so much higher than last year. Help them not to be puzzled.

As a practical matter, there is no predicting whether CA will be a credit reduction state again in 2013 (any bets on whether “we” repay those loans in the coming months?).

In 2011, the credit reduction liability resulted in an additional $21 per employee.
For 2012, the hit is […]

By Linkenheimer LLP|2020-09-03T20:05:52+00:00January 11th, 2013|2012, 2013, ca, credit reduction, employer, FUTA, new tax|0 Comments