Column & News

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CHLK Tax Letter on July 20, 2022

1.    CalSavers(AB 102): Employers with five or more employees must participate in CalSavers if they do not already have a workplace retirement plan by 6/30/22.  Employers must complete adding employee information and submit employee contributions by 7/31/22. Failure to do so will result in the first fine of $250 penalty per employee and if employers don’t still…

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City of Los Angeles & Unincorporated Area within LA County – New Minimum Wage Ordinance Effective 7/1/2022

If your business is located inside the boundaries of City of Los Angeles, then you must follow the minimum wage schedule effective 7/1/2022.   Part I. City of Los Angeles  City of Los Angeles Minimum Wage Ordinance Date 26 or More Employees 25 or Fewer Employees 7/1/2022 $16.04 $16.04   Part II. Unincorporated Area within LA…

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Notice regarding Assembly Bill 150

Dear client,   On July 16 2021, CA Governor signed Assembly bill 150, and the bill allows some pass-through entities taxed as S corporations and partnerships that do business in California to elect to pay a 9.3% entity-level tax on income that California would normally tax as personal income when passed through to the owners.…

tax-deductions

Temporary allowance of full deduction for business meals on the Consolidated Appropriations Act, 2021 (the Act)

Employers will be able to deduct 100% of their business meal expenses that are incurred in 2021 and 2022, rather than the standard 50%.The provision is limited to “food or beverages provided by a restaurant,” consistent with the policy objective behind this provision of   assisting the restaurant industry. The phrasing of “provided by” may also…

tax-credits

Employer tax benefit on the Consolidated Appropriations Act, 2021 (the Act)

1. Extension of paid leave tax credits Under the FFCRA, employers with under 500 employees generally must provide paid leave to certain individuals impacted by COVID-19.  This requirement goes through December 31, 2020, and employers are eligible for a credit against payroll taxes to mitigate the cost of this leave.  The Act does not require…

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[6/6/2020] Coronavirus 2019 (Covid-19) Tax Update 6: PPP Loan Forgiveness

Trump Signs New Law Relaxing PPP Rules: What You Need To Know Reduced payroll cost from 75% to 60% At least 60% of your loan must be used for payroll costs. Payment to independent contractors cannot be included in the payroll costs. 24 WEEKS OF COVERAGE Eligible expenses incurred that are to be forgiven was…

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Payroll Updates as of 4/15/2020

1. Form 941 and Form 940 (Deposit Only) As of April 15, 2020, the Internal Revenue Service has NOT announced any extension about Form 941 which will be due by April 30, 2020.  The Service neither announced the deferral of payroll taxes due in the month of April. 2. EDD Statewide – March 2020 Employers…

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[4/15/2020] Coronavirus 2019 (Covid-19) Tax Update 4

IRS provides additional extensions: Income tax filing and payment, estimated tax payments, IRA and HSA contributions The IRS has now expanded its extension relief to most taxpayers who had income tax filing and/or payment obligations due on or after April 1, 2020, and before July 15, 2020, including second estimated tax payments that fall within…

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COVID-19 Extensions to File and Pay Sales Tax & Small Business Relief Payment Plans

A. COVID-19 Extensions to File and Pay In accordance with the Executive Order issued by Governor Gavin Newsom on March 30, 2020, CDTFA is providing an automatic three-month extension for a tax return or tax payment to any businesses filing a return for less than 1 million in tax without incurring any penalties or interest.…

property tax notice

Penalty for Property tax late payment can be waived

Under existing law, county tax collectors do not have the authority to extend the property tax deadline. Penalties can be waived under following two circumstances: Offices of any county tax collector are closed and, as a result, taxpayers are unable to make property tax payments to that county by April 10. Online payment and pay-by-mail…

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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…