City of Los Angeles – Emergency COVID-19 Ordinances

On March 27, 2020, the Los Angeles City Council approved the following emergency COVID-19 ordinances. 1) COVID-19 Supplemental Paid Sick Leave (“SPSL”)(Article 5-72HH)http://clkrep.lacity.org/onlinedocs/2020/20-0147-s39_ord_draft_03-27-20.pdf ApplicableEmployers are obligated to provide 80 hours of SPSL to applicable employees.The ordinance expires on December 31, 2020 unless the City Council takes action to extend the ordinance.  Applicable employers The new…

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Coronavirus 2019 (Covid-19) Tax Update 2

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a stimulus bill that includes a loan program to keep small businesses afloat during mandated COVID-19-related closures. Here are the details:   1. Stimulus Check to Individual Taxpayers Maximum $1,200 for a Single taxpayer ($2,400 for married…

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Coronavirus 2019 (COVID-19) / Tax Update: as of March 17, 2020

1. IRS IRS will waive interest and penalty charges for 90 days for Americans who owe up to $1 million in taxes. Tax filing due date is not extended so filing is encouraged by April 15; it’s unclear at this time whether the IRS will officially extend that filing deadline as well. https://home.treasury.gov/news/press-releases/sm948 2. The…

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Secure Act

THE SETTING EVERY COMMUNITY UP FOR RETIREMENT ENHANCEMENT ACT OF 2019 (THE SECURE ACT) TITLE I: Expanding and Preserving Retirement Savings Section 101. Expand Retirement Savings by Increasing the Auto Enrollment Safe Harbor Cap The legislation increases the cap from 10 to 15 percent of employee pay that required automatic escalation of employee deferrals go…

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How Much Can Businesses Deduct for Vehicles Placed in Service in 2019?

Does your business need to add one or more vehicles? If so, the purchases may qualify for tax breaks under current tax law. Here are the details. First-Year Depreciation Breaks The Tax Cuts and Jobs Act (TCJA) allows unlimited 100% first-year bonus depreciation for qualifying new and used assets (including eligible vehicles) that are acquired…

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Penalty for No Health Insurance 2020 in California

The State of California is working to reduce the number of uninsured families with the adoption of a new state individual health care mandate. Here are three things California residents need to know: 1. Make sure you have health coverage The mandate, which takes effect on January 1, 2020, requires Californians to have qualifying health…

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ASU 2019-10 : Amendments to Subtopic 842-10

The FASB has issued ASU 2019-10, which amends the effective dates for three major accounting standards.  The ASU defers the effective dates for the credit losses, derivatives and leases standards for certain companies. Please find the accounting update regarding leases for nonpublic entity. Amendments to Subtopic 842-10 Amend paragraphs 842-10-65-1 and 842-10-65-4 and their related…

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Minimum Wage Ordinance

Dear client; CHLK is taking this time to thoroughly explain which minimum wage ordinance your business should follow.   If your business is located inside the boundaries of City of Los Angeles, then you must follow below minimum wage schedule City of Los Angeles Minimum Wage Ordinance Effective Date 26 or More Employees 25 or…

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[Tax Update] Trump’s Tax Reform

Both the House of Representative and Senate passed the final version of the Tax Cuts and Jobs Act, which will be in effect beginning 2018. Brief summaries of new tax laws are as follows: The new seven federal income tax brackets are 10,12,22,24,32,35,37% compared to the current tax rate of 10,15,25,28,33,35,39.6%. The final bill doubles…

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