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Employers Cited for Subcontractor’s $1.6 Million in Wage Theft

Contracting for Labor? Employers Cited for Subcontractor’s $1.6 Million in Wage Theft

New expanded tests for determining who is CA independent contractor

Expanded tests for CA independent contractors On September 18, California Governor Newsom signed Assembly Bill 5 into law. The law expands the use of the “ABC test” to determine if workers in California are employees or independent contractors. Read more: https://www.dir.ca.gov/dlse/faq_independentcontractor.htm   Under the ABC test, a worker is presumed to be an employee unless the […]

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 […]

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 […]

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 […]

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 […]

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.

2016 Retirement Plan Contribution Limits

The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $18,000. 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 remains unchanged at $6,000. […]

For 2016 Social Security Wage Base remains at $118,500

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 […]

2015 SIMPLE IRA Plan FAQs – Contributions

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 under a […]

New California Mandatory Paid Sick Leave Law begins 7/15/15

Healthy Workplace Healthy Family Act of 2014 (AB 1522)   See overview: http://www.dir.ca.gov/dlse/ab1522.html See FAQ: http://www.dir.ca.gov/dlse/Paid_Sick_Leave.htm   An employee who, on or after July 1, 2015, works in California for 30 or more days within a year from the beginning of employment, is entitled to paid sick leave. Employees, including part-time and temporary employees, will earn at […]

Payroll taxes and rates: wage bases and limits-Multiple Years

Taxes and rates: wage bases and limits Article ID: 2000093  Source: http://payroll.intuit.com/support/kb/2000093.html Overview This article is about the rates and limits for Social Security, Medicare, federal income tax (FIT), state income tax (SIT), and state unemployment income (SUI). Assumptions You have employees subject to federal taxes. Details Wage base limits for DIY and Assisted payroll are […]

For 2015 Social Security Wage Base increases to $118,500

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 […]

Accountable Plan Expense Reimbursements

From IRS Publication 15 (2014) http://www.irs.gov/pub/irs-pdf/p15.pdf Employee business expense reimbursements. A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees’ business expenses. How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. If a single payment includes […]

QuickBooks Payroll: FAQs for 2014 FUTA Credit Reduction States

This article explains how the Federal Unemployment Tax Act (FUTA) credit reduction affects your FUTA taxes, Form 940, and Schedule A for 2014. http://payroll.intuit.com/support/kb/1000921.html

2014 Federal Unemployment Tax Act (FUTA) Credit Reductions

FUTA Credit Reduction What is a credit reduction state? A state is a credit reduction state if it has taken loans from the federal government to meet its state unemployment benefits liabilities and has not repaid the loans within the allowable time frame. A reduction in the usual credit against the full FUTA tax rate […]

What employees are exempt from hourly pay provisions of the FLSA?

Many employers want to treat their employees as salary employees instead of hourly employees. There are big potential problems if you do this with an employee that is not exempt from the minimum wage rules of the FLSA (Fair Labor Standards Act). Note that certain states have wage and hour rules that are more stringent […]

IRS Semi-weekly and Next-Day Payroll Tax Deposit Requirements

If you have a tax liability of more than $50,000 in the look back period (2012Q3 + 2012Q4 + 2013Q1 + 2013Q2), the semi-weekly deposit schedule applies to you. As a semi-weekly schedule depositor, your deposit of accumulated taxes for wages paid on Wednesday, Thursday, or Friday is due by the following Wednesday. Deposit of […]

IRS Announces 2014 Pension Plan Limitations

IR-2013-86, Oct. 31, 2013 WASHINGTON — The Internal Revenue Service today announced cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2014.  Some pension limitations such as those governing 401(k) plans and IRAs will remain unchanged because the increase in the Consumer Price Index did not meet the statutory […]

Employers may owe additional tax on FUTA wages paid in credit reduction states.

FUTA Credit Reduction What is a credit reduction state? A state is a credit reduction state if it has taken loans from the federal government to meet its state unemployment benefits liabilities and has not repaid the loans within the allowable time frame. A reduction in the usual credit against the full FUTA tax rate […]

For 2014 Social Security Wage Base increases to $117,000

For 2014 Social Security Wage Base increases to $117,000 Source: http://www.socialsecurity.gov/OACT/COLA/cbb.html