California Creates $100 Million Hiring Tax Credit for Small Businesses by Mike Noon

California Creates $100 Million Hiring Tax Credit for Small Businesses. SB 1447 allows businesses with 100 or fewer employees to receive a tax credit of $1,000 per net new hire after July 1, 2020, compared to their workforce…

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IRS New Form 1099-NEC for Non-Employee Compensation by Mike Noon

The new IRS Form 1099-NEC (non-employee compensation) will be used strictly for reporting 2020 independent contractor payments of $600 or more in the course of your trade or business. You will still be required to use the 1099-MISC…

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Unemployment Fully Taxable for Federal by Mike Noon

Unemployment is fully taxable for Federal.  Even the extra US Government COVID kicker of $600/$300 a week is fully taxable for Federal purposes. CA does not tax unemployment or the COVID kicker. Taxpayers may want to elect Federal…

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Employee Social Security 6.2% Tax Deferral 9/1/20 to 12/31/20 UPDATE by Sandra O’Connor

The Treasury and the IRS have finally released guidance today on the deferral of the employee’s share of Social Security taxes pursuant to President Trump’s August 8, 2020, Presidential Memorandum. As you know from our last post, the…

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Employee Payroll Tax Deferral 9/1/2020 to 12/31/2020 by Mike Noon

What you need to know or what we don’t know?  The President’s Executive Order came out on August 8, 2020 with the following: Employee only paycheck of social security 6.2% tax can be deferred between 9/1/2020 and 12/31/2020.…

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Expensing Employee Tuition by Sally Thrapp

When an employee is looking to go back to school or needs to in order to stay in their profession, their company can pay for that education, which can then be expensed. But is that income taxable for…

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Canceling IRS & CA FTB 2019 Electronic Withdrawal Payments Setup

To stop IRS and CA 2019 payments already setup, call 2 business days prior: IRS: 888-353-4537, open 24/7 CA FTB: 916-845-0353, open 8am to 4:30pm If used credit card to pay, call payment processor.

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Payroll Protection Program Loans are Different than the SBA Disaster Loans, by Mike Noon

To clarify, the CARES Act $350B business Payroll Protection Program loans are different than the SBA Disaster Loans, 2 completely different loans and applications. Check with your bank regarding the CARES Act business Payroll Protection Program loans. Banks…

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COVID-19 Recovery Rebate Checks, by Mike Noon

Who is eligible for a recovery rebate? All U.S. residents or citizens with adjusted gross income under $75,000 ($112,500 for head of household and $150,000 married), who are not the dependent of another taxpayer and have a work-eligible Social…

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S-Corporation Owner Eligible for Unemployment Benefits, by Mike Noon

If you are an S-Corporation owner that is on payroll and you have taken a significant hit regarding COVID-19, fire yourself and file a claim for unemployment. Here’s the rules from CA EDD: Thus, whenever an individual who…

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