In January 2020 California AB-5 will go into effect and many workers previously classified as contractors will be required to reclassify as W-2 wage earning employees. The CA EDD has always had criteria by which employers can determine whether a worker is classified correctly as a 1099 but those criteria… [Read more]
Four Year-End Tax Questions to Ask Your CPA
Your CPA isn’t just there to ensure that the numbers add up on your tax returns. They can also provide useful advice on how to manage your income for the year and estimate your tax liabilities going forward. A qualified and knowledgeable CPA can also give you insights to help… [Read more]
Understanding Business Tax Rates By Entity Type
There are complicated rules, and they apply differently to businesses based on entity type, size, and a number of other variables. The good news is that, like a new language, it is possible to pick up enough basic tax knowledge to get by on a day-to-day basis and ensure your… [Read more]
Calculating Your Business Tax Liability: Federal and California State Tax Law
States vary in their tax laws and in their allowable deductions for business owners. Because California’s state tax laws differ from federal tax laws, business owners in California should be attentive to ensure they comply with both the federal and state requirements. Working with a qualified CPA who understands California… [Read more]
Does Your Business Accept Large Cash Payments? What You Need to Know to Avoid Red Flags.
While many businesses find that cash payments are both industry-standard and a convenient way of doing business, and acknowledging that it is perfectly legal to accept cash payments, there are some challenges to consider when it comes to preparing for tax season if your business accepts large cash payments. It… [Read more]
Selling Business Assets That are Subject to a Tax Lien: What You Need to Know
When you fall significantly behind on a government tax bill, whether that tax bill is attached to your company or personal taxes, Uncle Sam looks for other ways to collect. One method includes staking a claim in your business interests. Not only can the government put a tax lien on… [Read more]
Three Actions California Can Take to Collect Your Unpaid Taxes
Small businesses are likely to find that they owe the IRS money at the end of the fiscal year. If your focus is on continual business growth, you have likely pushed more of your cash into developing your business than saving for tax season — and you may be left… [Read more]
Your Guide to Navigating an EDD Audit
In the face of a perceived increase in the number of independent contractors, the California Employment Development Department (EDD) has begun a campaign of stricter enforcement of employment tax laws. With EDD conducting more audits of California business’ employment records, business owners and their bookkeepers should be prepared for the… [Read more]
The Dynamex Case, EDD and What the New Rules Mean for Your Independant Contractors
The California Supreme Court recently heard a case that is changing the rules on the classification of Independant Contractors in the state of California. Previously, there were 13 factors that EDD would look at in assessing whether a worker was a contractor or an employee. In October of 2018 that… [Read more]
Large Cash Transactions: Your Reporting Responsibilities and Penalties for Failing To File
Businesses who are paid in cash have a responsibility to report payments over $10,000 to IRS using form 8300. Form 8300 is similar in function to a 1099 in that services paid for from one business to another usually generate a 1099, submitted by the company who received the work… [Read more]
