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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 |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 |2021-09-29T22:53:20+00:00September 29th, 2021|business, CA tax, covid-19, tax credit|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 |2021-09-01T20:36:48+00:00September 1st, 2021|CA tax, tax increase, tax planning|0 Comments

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. […]

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