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Payroll Taxes

How to Handle Supplemental Pay in California

How to tax bonuses and commissions

As employers, we all (most of us anyway) love sharing commissions, profits, or performance bonuses with our employees, because we know they’ve worked so hard to achieve a particular goal. Employees get excited too! You can imagine however, the disappointment when they realize they’ve jumped up a tax bracket (or two) and get killed with…

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Work Opportunity Tax Credit

Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire and retain individuals from target groups with significant employment barriers (e.g., veterans, ex-felons, etc.). Employers can claim about $9,600 per employee in tax credits per year under the WOTC program. Additionally, there is no set limit to the number…

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Company Provided Vehicles and IRS Rules

Company vehicles and the IRS

If you supply a vehicle to an employee for business or business and personal uses, there are several rules laid down by the IRS to properly account for and tax the value company provided vehicle. If you currently provide a vehicle to an employee for business and/or personal use, this post is for you. Let’s…

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The Lowdown on Independent Contractors            

Employee vs Independent Contractor

You’ve been hearing the buzz, that the EDD and IRS have adopted new rules and are cracking down on the improper practice of using 1099 “employees” or more accurately, independent contractors in positions that should be categorized as employees. The buzz is accurate. Not only are government agencies cracking down, but Google is a powerful…

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FUTA Tax Credit Reduction – 2017 Year End Surcharge

FUTA Tax Credit Reduction

The Federal Unemployment Tax Assessment (FUTA), is a federally generated unemployment tax that creates a Federal trust fund to cover the cost of unemployment insurance over and above what the states pay out. There is a little known secret to the FUTA tax, and one that might surprise you at the end of the year…

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