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California Tax Updates for 1/7

Update 1:

Employers in California should know the state Employment Development Dept. released CA’s 2022 interest rates on delinquent payroll taxes. For the period of Jan. 1, 2022, through June 30, 2022, the interest rate will be 3% compounded daily (unchanged from 2021). This is the interest rate charged on all overdue taxes, including: Unemployment Insurance; Employment Training Tax; State Disability Insurance and Personal Income Tax withholding. This rate is subject to semiannual adjustment in January and June, based on short-term federal rates. CA’s Unemployment Insurance Code doesn’t allow the interest to be canceled or waived. Contact us with questions or visit this link: https://bit.ly/3dZFFXS

Update 2:

California’s statewide minimum wage rate will rise in 2022. The CA Dept. of Industrial Relations has announced that the statewide hourly minimum wage rate will rise to $15.00 for large employers (with at least 26 employees) and to $14.00 for smaller employers. In 2016, CA law required the state […]

By Linkenheimer LLP|2022-01-07T20:29:29+00:00January 7th, 2022|CA tax|0 Comments

California Tax Updates for 9/1

Update 1:

San Francisco will impose an additional employer tax on certain businesses, effective in 2022. Businesses affected are those in which the highest-paid managerial employee earns more than 100 times the median compensation of its employees. The tax rate will increase for every additional 100 times that the CEO’s pay exceeds the median worker’s pay. The extra tax maxes out when the ratio of CEO pay to worker pay reaches 600 to 1. The maximum tax on payroll is 2.4% or a surcharge on the gross receipts tax of up to 0.6%. Businesses that are exempt from San Francisco’s gross receipts tax, due to small business status, are also exempt from the pay ratio tax. Contact your Linkenheimer CPA with questions.

Update 2:

California’s Gig Worker law (Prop. 22), which passed in Nov. 2020, has been ruled unconstitutional. That law exempts app-based driving companies such as Uber and Lyft from a previously passed law, known as the 2020 ABC test. That test […]

By Linkenheimer LLP|2021-09-01T20:36:48+00:00September 1st, 2021|CA tax, tax increase, tax planning|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

California Tax Updates for 3/24

Update 1:

Two more California cities, Pomona and Santa Ana, have adopted Hero Pay Ordinances to give extra pay to certain workers during the COVID-19 pandemic. Pomona’s ordinance is effective from 3/1/21 through 6/29/21, requiring qualifying retail businesses to pay an additional $4.00 per hour to their workers. Here are the details for Pomona, including which businesses are affected: https://bit.ly/3cCcAkt. Santa Ana’s ordinance also requires $4 per hour of additional pay (from 3/3/21 through 6/30/21). Here are the details for Santa Ana, including which businesses are affected. https://bit.ly/3cEREsX. Or, contact your Linkenheimer CPA with questions.

Update 2:

In his 2021 State of the State address, California Governor Gavin Newsom didn’t propose new or higher taxes. The address was delivered virtually from Dodger Stadium in Los Angeles earlier this month. Newsom devoted most of his address to the COVID-19 pandemic, highlighting the state’s progress in battling […]

By Linkenheimer LLP|2021-03-24T18:46:37+00:00March 24th, 2021|ca, CA tax, california, covid-19, small business|0 Comments

Tax Day for Individuals Extended to May 17: Treasury, IRS Extend Filing and Payment Deadline

The Treasury Department and Internal Revenue Service announced on Wednesday that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig. “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, […]

By Linkenheimer LLP|2021-03-19T17:56:36+00:00March 19th, 2021|ca, CA tax, california, ftb, irs, tax deadlines|0 Comments