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]
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]
Risks of Misclassifying Independent Contractors and Employees
Is the person you just hired a 1099 contractor or an employee? Making a false assumption could be costly. In California, there is a fine line separating these two categories of workers and significant penalties for misclassification. Here are some of the consequences you might have to face for mislabeling… [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]
You Filed Your Taxes: Now What?
April 15th has passed and, hopefully, you’ve filed your 2018 taxes and can breathe a sigh of relief. Before you lock that filing cabinet, here are a few final steps to ensure your records are up to date. 1: Go old school. Print a copy of your completed tax return… [Read more]
What to Know When Your Client is Facing a Criminal Investigation by the IRS
There are few calls less welcome than a call from the IRS. It could come directly to your accounting office or you might hear from a client after they have been contacted. Either way, you need to take the issue seriously and act carefully because your immediate actions may negatively… [Read more]
An IRS Special Agent Contacted Me (or My Accountant): What Now?
Just the thought of being contacted by the IRS can be enough to make you sweat. Receiving a letter, phone call, or surprise visit from IRS Special Agents can be extremely stressful and frightening. Whether they’ve reached out to you or your accountant, you may be wondering what to do… [Read more]
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