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Makeup time in CA not overtime if certain conditions are met

Makeup time in CA not overtime if certain conditions are met. Makeup time is one of the rare occurrences under California law that employees have flexibility to adjust their work schedule to accommodate for important life events that come up from time to time. Makeup time allows employees to take time off and then make it […]

Retirement Plan required for CA Employers

Retirement Plan required for CA Employers Any employer with at least five employees that doesn’t already offer a workplace retirement savings vehicle will be required to either begin offering one via the private market or provide their employees access to CalSavers. Size of business Deadline 100< employees June 30, 2020 50< employees June 30, 2021 […]

DOL SIMPLE IRA Plans for small business publication

DOL (Department of Labor) SIMPLE IRA Plans for small business publication: Most of the information is the same as the IRS, however we noticed this more stringent salary deferral deposit requirement: For plans with fewer than 100 participants employers can deposit salary eduction contributions with the plan no later than the 7th business day after […]

2019 Retirement Plan Limitations

2019 Retirement Plan Limitation highlights: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000. The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan […]

Year End Center: QuickBooks Online Payroll Full Service

Year End Center: QuickBooks Online Payroll Full Service https://community.intuit.com/browse/quickbooks-online-payroll-fullservice-yearend

SIMPLE IRA Plan

A SIMPLE IRA plan (Savings Incentive Match PLan for Employees) allows employees and employers to contribute to traditional IRAs set up for employees. It is ideally suited as a start-up retirement savings plan for small employers not currently sponsoring a retirement plan. Choose a SIMPLE IRA Plan Learn the basics of a SIMPLE IRA plan […]

Business Gifts Considerations

Giving is a sign of gratitude and appreciation. It’s a common saying that “giving is better than receiving”. The giver has the benefit of feeling good about blessing someone else, and the recipient has both the benefit of feeling good that giver cares, and also that of the actual gift. Additionally, the recipient may be more […]

Revised 2018 HSA contribution limit for individuals with family HDHP coverage

After the 2017 Publication 969 was released, the 2018 inflation-adjusted amounts for HSAs were published in Revenue Procedure 2018-18, and subsequently in Revenue Procedure 2018-27. If you viewed or downloaded the publication, please note the following for the first “Tip” on page 5. Revenue Procedure 2018-18 (dated March 5, 2018) lowered the HSA contribution limit […]

Why significantly increasing minimum wage will hurt employees and businesses

Short answer: Micky D’s can only charge so much for a burger and people still be able to afford to buy it. More detailed answer: Since small business margins are very tight, an increase in costs cannot be absorbed without prices being increased. A jump to $15/hr from the federal minimum wage of $7.25 is […]

State-by-State Rules on Payroll Debit Cards, aka Paycards

There has been much talk and a lot of reports on the use of paycards. Every day, more workers insist on using paycards to receive their wages. I’m often asked if paycards are legal to use in various states. The simple answer is… read more http://www.cpapracticeadvisor.com/news/12410881/state-by-state-rules-on-payroll-debit-cards-aka-paycards

Gig Economy Business Model Dealt a Blow in California Ruling – Independent Contractor v. Employee

In a ruling with potentially sweeping consequences for the so-called gig economy, the California Supreme Court on Monday made it much more difficult for companies to classify workers as independent contractors rather than employees. Read more… https://www.nytimes.com/2018/04/30/business/economy/gig-economy-ruling.html?emc=edit_dk_20180501&nl=dealbook&nlid=3078819520180501&te=1

IRS Addresses ‘Tip Boxes’

At the end of each shift, then, the individuals decided how to allocate the tip box.  Here, the there was no evidence that the Taxpayer knew the actual amounts received, nor did it issue Forms W-2 or include those amounts on Forms 941. During an audit, the IRS determined that the volunteers should be treated […]

IRS lowers HSA Family contribution limit by $50 to $6,850 for 2018.

IRS lowers HSA (Health Savings Account) Family contribution limit by $50 to $6,850 for 2018. Self-only limit did not change, and remains at $3,450. https://www.irs.gov/pub/irs-irbs/irb18-10.pdf

Updated Withholding Calculator on IRS.gov and a new version of Form W-4

The Internal Revenue Service today released an updated Withholding Calculator on IRS.gov and a new version of Form W-4 to help taxpayers check their 2018 tax withholding following passage of the Tax Cuts and Jobs Act in December. The IRS urges taxpayers to use these tools to make sure they have the right amount of […]

Non-taxable de minimus fringe benefits

In general, a de minimis benefit is one for which, considering its value and the frequency with which it is provided, is so small as to make accounting for it unreasonable or impractical. De minimis benefits are excluded under Internal Revenue Code section 132(a)(4) and include items which are not specifically excluded under other sections […]

24 hr Direct Deposit now active in Intuit QuickBooks Full Service Payroll & QBO Online Payroll

Today, Intuit announced that 24 hr Direct Deposit now active in Intuit QuickBooks Full Service Payroll & QBO Online Payroll. This means that you can approve your direct deposit by 5 pm PT and still make payday the next business day! There is no additional cost. It is not currently supported in Intuit Online Payroll, Intuit Full Service […]

2018 Social Security Wage Base set at $128,700

Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index. We call this annual limit the […]

2017 Social Security Wage Base set at $127,200

Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index. We call this annual limit the […]

Support for QuickBooks 2014 (Windows and Mac) ends after 5/31/2017

If you are using QuickBooks 2014 (Windows and Mac) then you won’t be able to use certain services and features after May 31, 2017. While the basic program will work, any add-on features like payroll (any level will not be updated with current tax tables), ViewMyPaycheck, live tech support, Online Backup, and Online Banking will […]

SIMPLE IRA Plan FAQs – Contributions

SIMPLE IRA Plan FAQs – Contributions Copied from https://www.irs.gov/retirement-plans/simple-ira-plan-faqs-contributions What types of contributions may be made to a SIMPLE IRA plan? Each eligible employee may make a salary reduction contribution and the employer must make either a: matching contribution or nonelective contribution. No other contributions may be made under a SIMPLE IRA plan. Can contributions made […]

S Corporation Compensation and Medical Insurance Issues (Updated 8/3/16)

S Corporation Compensation and Medical Insurance Issues When computing compensation for employees and shareholders, S corporations may run into a variety of issues. The information below may help to clarify some of these concerns. Reasonable Compensation S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation […]

New Overtime Rule Effective 12/1/2016

The new overtime final rule will become effective on December 1, 2016, giving employers more than six months to prepare. The final rule does not make any changes to the duties test for executive, administrative and professional employees, but does: Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections […]

CA Minimum Wage Increases to $10 per hour

Effective January 1, 2016, the minimum wage in California is $10.00 per hour. Read more… http://www.dir.ca.gov/dlse/faq_minimumwage.htm

Be on the lookout for IRS Payroll Tax Deposit frequency notices

Each year, during November and December, the IRS sends out FTD Federal Tax Deposit Frequency notices that inform you about what schedule that your payroll taxes must be paid. Your deposit schedule for a calendar year is determined from the total taxes reported on your Forms 941 in a four-quarter lookback period. The lookback period […]

Be on the lookout for state state UI rate notice for 2016

Each year during November and December, states send out UI (unemployment insurance) rate notices for the upcoming year. You want to make sure to input that new rate before the first payroll of 2016 to avoid miscalculation of the UI tax liability.