YEAR END AND UPS:

UPS would like their clients to know they are working hard to keep delivers smooth for the holidays, but they do suspend all guarantees on next day deliveries for GROUND packages and put a delay of 90 minutes on NEXT DAY AIR  deliveries in December. Please refer to our CALENDAR page to see UPS closures as well as X-Acts.

Please allow enough time for your deliveries to arrive to you. Take into account holidays, especially from  November - January, 
this is a very busy time for UPS, and they are working very hard to get your packages to you, but delays do happen during the holidays - 
NDA is always an option for an additional fee.

Things to know - 


    Check periodically for new information that can keep you up-to-date with things you need to know about payroll, the State of California and more.  Newer info will be at the top, as older info will there as you scroll down.

Employee Withholding Allowance for California

Direct from the California State website: 

"When you hire an employee, you must have them complete and sign both withholding certificates: the federal Form W-4 and the state DE 4. The W-4 is used for federal income tax and the DE 4 is used for California Personal Income Tax (PIT).


Please read more on this topic here: information

Changes in 2020

Starting in 2020, allowances are no longer included on the redesigned Form W-4 for PIT withholdings. New hires and existing employees making changes to their withholdings must submit both the Form W-4 and the Employee's withholding allowance certificate (DE 4, find it under our forms section). If an employee does not give you a properly completed state DE 4, you must withhold state income taxes from the employee’s wages as if the employee were single and claiming zero withholding allowances.

Employees who submitted a Form W-4 before 2020 are not required to submit a new form if they have no changes to their withholding allowances. Continue to calculate withholding based on previously submitted forms."

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2020 and the New W-4

"The new design reduces the form's complexity and increases the transparency and accuracy of the withholding system. While it uses the same underlying information as the old design, it replaces complicated worksheets with more straightforward questions that make accurate withholding easier for employees."

 

We are not sure about it being easier for either the employer or employee, but below you can see more questions and information about the new withholding forms.

 

In very basic and simple scenarios, do you have to fill in the whole form?

 

No. The form is divided into 5 steps. The only two steps required for all employees are Step 1, where you enter personal information like your name and filing status, and Step 5, where you sign the form. Complete Steps 2 - 4 only if they apply to you. Doing so will make your withholding more accurately match your liability.

 

Frequently asked questions and more information can be found at:

 

https://www.irs.gov/newsroom/faqs-on-the-2020-form-w-4



Withholding Calculator

 

If your employees are undecided with what they should withhold, or if they do not know how to fill in their W-4s, the IRS has a withholding calculator. This "calculator" can be found at the link below.

 

https://www.irs.gov/individuals/tax-withholding-estimator

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Mandatory Sexual Harassment Training

"California employers of five (5) or more employees, including those who work outside California , are required to provide sexual harassment prevention training to all employees every two years. Supervisors must receive two hours of training, and all other employees must receive one hour of training"

 

Frequently asked questions and more information can be found at:

 

https://www.dfeh.ca.gov/resources-2/frequently-asked-questions/employment-faqs/sexual-harassment-faqs/

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California's New Paid Sick Leave 
With California's new paid sick leave law, there are many questions about the rules of this law, here are few main questions employers have. Click the "frequently asked questions" link below to find these questions and answers, all found at the California state website.


California Has a few rules for Employers to follow when it come to the Sick Leave. One important item is the poster, this needs to be available to all employees.


More information, along with posters for San Francisco and in multiple languages - these  can all be found on the States website: 
The State of California has also created a webinar and slide show presentation
You can also view these questions and answers at the California State Website:  http://www.dir.ca.gov/dlse/Paid_Sick_Leave.htm
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Social Security Administration - New for 2019
Employer Correction Request

SSA Changes to W-2 

SSN/ Name Mismatch Policy



There is a potential notice you 

may receive from the SSA.


Since the beginning of March, approximately 800,000 notices have been sent out. The SSA has sent these notices to employers letting them know that at least one W-2 has a name/SSN mismatch based in the 2018 W-2 data.

 

This is primarily to help ensure earnings are properly credited to an employee's record for Social Security benefit purposes. At this time, there does not appear to be any penalty associated with not fixing the mismatched, but there is potential for penalties in the future.

 

The SSA announced that they will begin sending notices to employers asking them to fix any names/SSN mismatches on W-2's. Click here for more information

Sample Notice from SSA

What to do...?

 

Now that you have been given notice - it is time to figure out which employee needs to be fixed. On page 2 of the notice, it states that:

 

"To view the names and SSN that could not be matched to our records, please use the Employer Report Status within Business Services Online (BSO). To begin using BSO, you must complete a one-time registration process."

 

To register, go to:

 www.socialsecurity.gov/bso/bsowelcome.htm.


Steps to fix error:

  • Have employees fill out a new W-4 each year, in pen and printed clearly
  • Have an I-9 on file for each employee with a copy of Social Security card
  • Employee's name in payroll must match the social security card, no nick names
  • Confirm info is correct on the employee list when processed with payroll
  • NO SSN should ever start with a "9"
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California Minimum Wage
Effective Jan. 2017 - the minimum wages will increase yearly until 2022.  The minimum wage for companies with more than 26 employees will start 2017, companies with 25 or less employees will be delayed by one year, making the increase effective from 2018-2023.

More info can be found on California States' website:

Minimum wage poste
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NEW - 2017 Tax Changes
W-2's  -  
The PATH Act of 2015 was passed to fight fraud, revising that W-2's must be handed to employees no later than 1/31/17- per normal, but the electronic submission is due to the SSA is on 1/31/17 as well. 


1099's
Under the same PATH Act - 1099's are also required to be submitted to both the IRS and RECIPIENTS by 1/31/17.


California Tax Payments
California will not accept any paper coupons for tax payments in 2017. All returns (DE9 and DE9C) must be submitted electronically as well. 


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Minimum Wage
For the State of California 
    We want to make sure everyone is aware of the current rates and up coming changes in minimum wage for California. Be aware there are cities that have a different minimum wage - please pay close attention to where your business is located and be sure to pay the correct minimum wage.


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Healthy Workplace Healthy Family Act of 2014
Starting July 1, 2015 

An employee who, on or after July 1, 2015, works in California for 30 or more days within a year from the beginning of employment, is entitled to paid sick leave. Employees, including part-time and temporary employees, will earn at least one hour of paid leave for every 30 hours worked. Accrual begins on the first day of employment or July 1, 2015, whichever is later.


  • More information can be found at by CLICKING HERE at the California State website.


  • Mandatory "Healthy Workplace/Healthy Families Act of 2014" Poster - CLICK HERE 

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Know your Taxes

When you run payroll, do you know when your taxes are due?

For an average payroll - under the semi-weekly depositor your taxes will either be due on a Wednesday or Friday.

A way to know when your taxes are due is if:
  • Payroll Check date is on a Saturday, Sunday, Monday or Tuesday - your taxes will be due the following Friday
  • Payroll Checks dated for Wednesday, Thursday or Friday - your taxes will be due on the following Wednesday

More information for California can be found here -  

Federal Tax information can be found here - 


More information can be found on these webpages about 
next day and monthly tax deposits. 
 
Be sure to be mindful of when your taxes are due - a late submission 
of taxes may result in penalties. X-Act has a cut off of 1 pm in order 
to submit taxes on time. Any questions please call.
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New information released from the State of California: 
Penalty Increase

The Employment Development Department (EDD) thanks you for your timely filing of payroll tax reports, submitting timely deposits, and providing timely wage information.  Effective the 3rd quarter 2014, penalties charged for late filing and late deposits will increase from 10% to 15%.  In addition, penalties charged for not reporting employee wage information will increase from $10.00 per employee to $20.00 per employee.





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