New Tax Withholding estimator

Published: 9/30/2019 5:07:20 PM

A mobile-friendly Tax Withholding Estimator replaces the Withholding Calculator. The new tool offers retirees, as well as employees and self-employed individuals, a more user-friendly way to check their withholding. Whether they receive wages or pension payments, it helps taxpayers estimate if the right amount is being withheld from their income to cover their tax liability. The tool uses a simple, six-step question-and-answer format using information like marital or filing status, income, withholding, adjustments, deductions and credits. These enhancements are just a few of the many new features offered by the Tax Withholding Estimator. Others include: Plain language to improve taxpayer

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Minor Child Wages

Published: 8/7/2019 1:20:53 PM

Minor Child Wages Minor Child Wages: Family Employees: Child Employed by parents. Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of a child. If these payments are for work other than in a trade or business, such as domestic work in the parent's private home, they are not subject to social security and Medicare taxes until the child

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Partnerships and Corporations' Tax Form Filing Dates Changed by Months for 2017

Published: 2/9/2017 8:45:57 PM

A month early or a month late, the difference is critical. Nothing is worse than paying penalties to the IRS, because tax penalties do not come out of profits, but remain taxed on profit statements. Many of our clients, large and small, fall into the following categories and should be aware of the changing dates for tax deposits this year. To preface: individuals filing form 1040, 1040a, and 1040ez, the due date is April 18th, 2017 because the 15th of April falls on a Saturday and Emancipation day will be observed on Monday the 17th. Partners filing returns with the

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IRS Changes in 2017

Published: 12/17/2016 7:20:47 PM

The IRS has announced the next year's income tax rates, including benefit amounts. To give context to these and because the value of US currency is relative, it’s we've provided a metric for how these changes stack up against the rate of inflation. The US has seen a 1.5% inflation rate in the 12 months since September 2015. Have a look at a clear layout of the changing standard deductions for the most common filing statuses: Married Filing Jointly has increased from $12,600 to $12,700, a $100 or 0.79%.Single or Married Filing Separately increased from $6,300 to $6,350, a $50

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Employees without SSNs, Look out for ITIN Issues

Published: 10/21/2016 7:28:36 PM

A new act was signed into law as of 2015, and will be affecting many Southern California residents. The Protecting Americans from Tax Hikes (PATH) Act changes an important use of the Individual Tax Identification Number (ITIN). An ITIN (pronounced "eye-tin") is a tax ID issued to many employees from outside the country. The IRS issues ITINs to individuals who have a need to file a Federal tax return, but are ineligible for a Social Security Number (SSN). Effective on tax returns starting January 1, 2017, any ITIN that has not been used for three years consecutively will become

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Minimum Wage Increases in California on January 1st, 2016

Published: 8/29/2016 11:14:56 AM

Minimum Wage Increase January 1st, 2016 the California minimum wage will increase from $9.00 per hour to $10.00 per hour. If you have employees that are currently making less than $10.00, you/we will need to change their rate for any hours worked starting January 1st. All hours worked in December can be paid at the old rate (even if the check date is in January). Make sure your salary employees are making at least the new minimum wage for the hours they work in January. If your pay period covers hours worked in December and January (i.e. Monday 12-28 to

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FUTA Credit Reduction 2015 - California

Published: 1/8/2016 7:56:01 PM

FUTA Credit Reduction 2015 - California FUTA Credit Reductions due to State Loans Under the joint federal/state unemployment insurance system, states with a high rate of unemployment and difficulty meeting their benefit obligations can borrow money from the Federal Unemployment Account (FUA) to pay benefits. If loans taken out during one year are not repaid by the end of the following calendar year, the FUTA credits for employers in those states are reduced, with the extra FUTA taxes paid being applied against each state’s loan balance. A state with an outstanding loan can avoid a credit reduction for its employers

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Paid Sick Leave Starts July 1st, 2015

Published: 4/22/2015 7:49:23 PM

Dear Client, As you probably know by now, the Healthy Workplace, Healthy Family Act of 2015 AB 1522 takes effect July 1, 2015. This affects all employers who engage the services of Cloud Payroll in California, since none of our clients fall under an exemption. The exemptions are: 1) Employees covered under a valid collective bargaining agreement (CBA) which provides for sick days. 2) In-home support services (IHSS). 3) Airline flight deck or cabin crew employees who have equivalent benefits. Below, and attached to this email, are what you need to know as an employer in California about AB 1522.

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Tips Tax Credit

Published: 12/12/2014 3:14:39 PM

Tips Tax Credit - Know an employer that their employees receive tips? If so, they need to make sure they claim their 'Tips Tax Credit' on their income tax return. Here is a link to an article explaining it:

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How Do You Know If Your Payroll Company is Depositing Your Payroll Taxes or Not?

Published: 11/11/2014 4:14:36 PM

How do you know if your Payroll Company is depositing your payroll taxes or not? You know the money is leaving your bank account, but how do you know it is getting to the IRS and the State? No matter how big or small your payroll provider is, their reports and ACH transaction records are not proof that your tax money got to it's intended destination. So how do you get proof that your payroll taxes are being paid? Easy, register with the IRS' EFTPS system and in California the EDD's e-Services for Business. Then you can view your current

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