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WHAT TO DO IF THE EDD TAKES YOUR MONEY

The California Employment Development Department can legally withhold money owed to you by the state for repayment of debt.  In other words, either through error or willful action, you owe a monetary debt to the State of California. The EDD is within its legal rights to withhold money from a variety of programs and tax […]

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PREPARING FOR THE 2017 TAX SEASON

It is that most un-wonderful time of year: tax time. April 15 may be a bit far away, but as a small business owner, you need to get your documentation for 2016 together as soon as possible. Your tax professional will thank you. By the way, one of the changes for next year includes moving […]

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WHAT HAPPENS IF YOU MISCLASSIFIED A WORKER?

What does the employment classification of workers have to do with payroll tax audits? Everything. When the Employment Development Department of the State of California decides to audit, the classification of your workers is the auditor’s sole concern. Additionally, the IRS often adopts the results of the EDD audit to use in assessing federal penalties. […]

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WHAT ARE YOUR PAYROLL TAX RESPONSIBILITIES?

In a previous post, we talked about the difference between independent contractors and employees. One of the biggest differences, and one that often drives intentional worker misclassification, is that employers must withhold and pay payroll taxes for employees whereas they do not for independent contractors. Such employers see this as a cost-saving for their businesses […]

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CLASSIFYING EMPLOYEES AND INDEPENDENT CONTRACTORS

You have hired someone to do work for you. Is that person an employee or an independent contractor? The answer is important because misclassifying an employee as an independent contractor, whether intentionally or through ignorance, can land you in court and in debt for payroll taxes. There are several tests from a variety of regulatory […]

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COMMON TAX ISSUES FOR SMALL BUSINESSES

Small businesses, of which there are thousands in California, spend the highest percentage of time of any business entity preparing and submitting taxes. Federal, state, and local tax requirements are extremely complex and change every year. Multiple agencies administer different taxes, and each has its own set of rules and methods of payment. It is […]

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CALIFORNIA PAYROLL TAX PROBLEMS AND THE EDD

Part of being a business owner is filing and paying payroll taxes for your employees. In California, the Employment Development Department, or EDD, administers these taxes. In addition to receiving tax filings and payments, the EDD also identifies and investigates potential infractions of tax law. What do you do if you develop tax problems and […]

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DO YOU NEED CALIFORNIA SALES TAX DEFENSE?

The Board of Equalization is the California public organization that administers the state sales and use tax law and regulations. The BOE also conducts audits, collects unpaid California state sales and use taxes, and administers the state property tax. There are presumptions of the tax code that the BOE follows in its operation and decision-making […]

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FEDERAL PAYROLL TAX: WHAT THE IRS EXPECTS FROM BUSINESS OWNERS

If you have employees, you are liable for federal payroll taxes. Some taxes are withheld from your employee’s wages, some you must pay yourself. The Internal Revenue Service, or IRS, administers payroll taxes as part of its responsibilities. Remaining in compliance means understanding how and when payroll taxes are calculated, filed, and paid. Brief Overview […]

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WHY DO I OWE STATE TAXES?

California is one of 43 states that collects state income taxes and currently has the highest state income tax rate in the U.S. at 13.3%. It comes in fourth for combined income and sales tax rates at 11.2%, behind New York, New Jersey, and Connecticut. We are here to explore the common reasons for higher […]

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