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.
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ERC - Employee Retention Credit
Please contact us if you want more information about the ERC, if you qualify and how we can help you!
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2022 COVID-19 Supplemental Paid Sick
All employers, public or private, with 26 or more employees are covered, click the poster below to see eligibility
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2022 COVID-19 Supplemental Paid Sick Leave law, covered employees are entitled to paid sick leave that is in addition to leave that was provided under previous laws which expired on September 30, 2021.
Please print this poster, read it over and display it where employees can easily read it.
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CalSavers - Things to be ready for, deadlines and more...
CalSavers is a California State law that requires that California employers who don't already offer an employer-sponsored retirement plan and who have 5 or more employees, either sponsor a retirement plan or participate in CalSavers. The three-year phased rollout includes staggered deadlines for registration based on employer size.
This program started in 2020 for companies of 100 employees or more (September 30, 2020 to be exact). The next deadline is for companies with 50 or more employees: June 30, 2021. Then lastly is employers with 5 or more employees: June 30, 2021.
X-Act is ready and working with a company closely to help our clients set up a retirement plan for their employees. Please contact X-Act to make sure that your company is in compliance before these deadlines.
For more information go to:
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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).
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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"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
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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
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Social Security Administration - New for 2019Employer 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
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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.
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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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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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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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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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