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]
The Small Business Owner’s Guide to Finding a Qualified CPA
As you search for the right CPA firm consider the following questions. After all as a Small Business Owner, switching CPAs can be a daunting and time consuming task and you want to ensure that the firm you choose has the right balance of services for your needs. Ask for… [Read more]
Small Business Owners: Mid-Year Review with Your Bookkeeper and CPA
Summer is in full swing now and. if you’re a business owner with sales that are heating up, this is the perfect time to take stock of your business’ financial situation. Mid-way through the year is the perfect opportunity to reflect and plan. Look back and assess how you are… [Read more]
Where do IRS investigations take place?
The job of IRS investigators is to validate their assumptions about your tax liability. When IRS investigators ask for an on-site visit, postponing that visit until after your Tax Attorney has had the opportunity to share the facts of the way your business runs with those investigators ensures that irreversible… [Read more]
California EDD: 1099 Contractors vs Employees How to tell the difference
The primary goal of the California Employment Development Department is to investigate companies whose employees are potentially mis-classified as contractors when they should be classified as employees. When determining whether your workers should be classified as employees or 1099 contractors take the example of the pLumbing Company who hires additional… [Read more]
Remedy For Failing To File 1099s
If you’re thinking back on the previous year and realizing there are 1099 forms you did not submit, here are the steps you can take to remedy the situation and possibly avoid having to pay fines on your errors. Reach out to your tax attorney and share the information of… [Read more]
Small Business Owner’s Checklist for This Year’s Tax Season
Up to 70% of small businesses outsource their tax preparation as well as other accounting functions. Preparing tax forms and tax returns are as confusing as they are time-consuming. Most small businesses would rather rely on an expert to do things correctly rather than waste their own resources to do… [Read more]
Learn How to Identify Red Flags on Your Business Tax Return Before You File
Everyone makes mistakes from time to time, but when it comes to your tax return, a single error could lead to countless problems with the IRS. While getting chosen for an audit doesn’t always mean that you’ll end up owing more taxes. However, it can result in changes that will… [Read more]
