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 comply with the requirements within 90 days, it will increase to $500 penalty per employee.  New eligible employers must also either register with CalSavers or offer a workplace retirement plan by 12/31/22.

2.    California One-Time Late-Filing Penalty Abatement (AB 194): CA enacted a first-time late-filing penalty abatement program for individual taxpayers for tax years beginning on or after 1/1/2022 with limitation on eligibility. This is only available to be used once in a lifetime.  Materiality of penalty should be considered before requesting abatement.

3.    Additional Tax Refunds from California (AB 192): This bill authorizes up to $700 in tax refunds for qualifying taxpayers with California Adjusted Gross Income (CA AGI) of up to $250,000 ($500,000 Head of Household) and up to $1,050 for married taxpayers filing a joint return (MFJ) with CA AGI of up to $500,000.  You should expect to receive the payment in November 2022 if you qualify. $250 for each dependent will also be refunded. They must have been your dependent on 2020 tax return. Please refer below to determine your qualification and expected amount of refund.

4.    La Palma Office Open: CHLK is proudly announcing the grand opening of our new office in La Palma, CA.  Our firm will be able to continue supporting our clients in Orange County in close proximity.

La Palma Office Address: 1 Centerpointe Dr. Suite 350, La Palma, CA 90623

Telephone #: 714-676-8100