updates - Linkenheimer LLP CPAs & Advisors

California Tax Updates for 10/28

Update 1:

Required supplemental paid sick leave (SPSL) related to COVID-19 expired in California on Sept. 30, 2021. Specifically, that leave was required of employers with at least 26 employees. However, a number of CA localities continue to require some form of SPSL. They include Long Beach (for employers with at least 500 employees); Los Angeles city and county (also for employers with 500 or more employees); and Oakland (for employers of 50 or more workers). Sonoma County has a pending extension to a prior law.

Update 2:

California’s 529 college savings plan conforms to recent changes in the federal tax law. Those changes expanded allowable withdrawals from 529 plans to include expenses associated with participation in a registered apprenticeship program and student loan repayment, for taxable years beginning Jan. 1, 2021 or after. Also, for the same period, CA legislation disallows the deduction available on qualified education loan interest to the extent such interest is paid as a tax-free distribution from a […]

By Linkenheimer LLP|2021-10-28T17:25:37+00:00October 28th, 2021|ca, CA tax, california, college tax credit|0 Comments

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 Linkenheimer LLP|2021-10-06T22:45:57+00:00October 6th, 2021|CA tax, california|0 Comments

Updates From the IRS- February 1st Deadline, Employee Retention Credit and More

February 1 deadline: Employers to issue and file wage statements; Businesses to provide Forms 1099-MISC and 1099-NEC to recipients

By law, employers are required to file copies of their Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31. However, since January 31 falls on a Sunday in 2021, the deadline is the next business day, Monday, February 1.

The IRS reminds businesses and other payors that the revised Form 1099-MISC, Miscellaneous Income, and the new Form 1099-NEC, Nonemployee Compensation, must be furnished to most recipients by February 1, 2021.

Take advantage of the extended Employee Retention Credit

The Internal Revenue Service urges employers to take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll.

Employers can withhold, make payments of deferred Social Security taxes from 2020

Read about IRS Notice 2021-11, which addresses how employers who elected to defer certain employees’ taxes […]

By Linkenheimer LLP|2021-01-29T00:10:57+00:00January 29th, 2021|irs, New Tax Laws|0 Comments

California Tax Updates for June 25

Update 1:

Many California businesses are downsizing or have closed permanently due to COVID-19. The California Franchise Tax Board (FTB) has released a detailed set of steps needed to fully close a CA business entity, including links to resources from the CA Secretary of State and other state departments. The FTB highlights the need to close out tax accounts by filing delinquent returns and paying all balances due on taxes, filing a current annual or quarterly return as final, filing the appropriate closure forms with different state agencies, notifying employees and other stakeholders of the intent to close and dissolving all accounts associate with the business. For more: https://bit.ly/37e3cjI

Update 2:

Businesses that hold unclaimed property in California get extra time to file reports. Due to COVID-19, the CA State Controller (SCO) has postponed the due date for holders of such property, including unclaimed wages, to submit their Remit Reports and Remittances for properties reported […]

By Linkenheimer LLP|2020-09-03T20:02:24+00:00June 25th, 2020|business, ca, CA tax, ftb, New Tax Laws|0 Comments