Employers found to have misclassified workers as independent contractors can be liable for up to three years of unpaid overtime pay, liquidated (double) damages, and attorneys’ fees. Misclassification cases frequently involve numerous employees resulting in substantial liability.
California Pass-through Entity (PTE) Elective Tax
For taxable years beginning on or after January 1, 2021, and before January 1, 2026, qualifying pass-through entities (PTEs) may annually elect to pay an entity level state tax on income. Qualified taxpayers receive a credit for their share of the entity level tax, reducing their California personal income tax. This will allow owners of pass-through entities to pay California personal income tax through that entity. The owner will receive a deduction for the California personal tax paid through the entity in the form of lower income reported to them on their K-1. This allows the owner to receive a
2021 Minimum Wage Increases + More
Twenty-five states are increasing their minimum wage rates in 2021. They are Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Illinois, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, South Dakota, Vermont, Virginia, and Washington.
What Should You Consider Before Deploying Capital?
When it comes to deploying capital, conventional wisdom favors reinvesting in growth that generates a return in excess of capital costs, even though many companies chose to return capital to shareholders.
Tax Checklist for Newlyweds!
Marriage changes a lot of things and taxes are on that list. Newlyweds should know how saying “I do” can affect their tax situation. Here’s a checklist of items for newly married couples to review.
The ABC’s of KPI’s
Key Performance Indicators (KPI’s) are critical tools for monitoring the health and success of your business. KPI’s are used in order to reach your ultimate goals. At Logistis we always say, “you cannot know where you are going, unless you know where you are.”
Can I just use my bank to track income and expenses?
Do you need basic income and expense tracking? You may not even need a bookkeeper. Many banks have developed very basic expense tracking and spending reports.
Estimated Taxes — Do I really need to pay? 😕
Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments.
California Sales Tax Updates
We know times are crazy, but there are a lot of important updates for CA sales tax you need to know. Please read highlights from CDTFA below. Relief and Extensions for Filing Returns For all but the largest taxpayers, first quarter 2020 returns were extended and are now due July 31, 2020. For all but the largest taxpayers, monthly returns for March, April, and May 2020 were also extended by three months. Tax returns for the second quarter, running from April through June 2020, remain due on July 31, 2020. For sales and use taxpayers required to make monthly prepayments
5 Reasons you should hire your child.
Working moms and dads generally spend a significant amount of money on child care while they work/run their business. Why not be able to save additional money while trying to do both? Here are 5 reasons to hire your child! Is your child able to dust, file, check inventory, model your products, etc.? If your answer is yes, you might be able to save money by hiring your child. You can instill fundamental work ethics and spend more time with those you love most in the world. It is a win-win! 1. You can pay less in taxes. Generally speaking,
How to coach yourself through investing in a bear market (tips from Guidline)
Logistis’ #1 choice for retierment planing is Guideline. Guideline is on a mission to help every small business offer a 401(k). And to help participants create a retirement they can look forward to. Guideline syncs with Gusto to take care of plan administration, and offers low-cost mutual funds. And unlike many 401(k) providers, they don’t charge any additional fees on investments. Learn more about Guideline 401(k) plans here. As is such, we are reposting this Guideline atricle by NICOLLE WILLSON, J.D., CFP®, C(K)P® 24.JUN.2020. “When you decide to invest your money, you are balancing how much risk you want to
SBA Finally Clarifies PPP Loan Forgiveness Rules: Full Forgiveness For Self-Employed Borrowers
SBA Finally Clarifies PPP Loan Forgiveness Rules: Full Forgiveness For Self-Employed Borrowers We are reposting this Forbes atricle by Brian Thompson becasue he lays it out beautifuly. “If you’re a freelancer or other self-employed person wondering if you’ll get forgiveness for loans taken out under the Paycheck Protection Program (PPP), yesterday brought good news. The SBA filed its 19th Interim Final Rule (IFR), scheduled to be published on Friday June 19th, focusing on revisions made from Paycheck Protection Program Flexibility Act (Flexibility Act) signed into law on June 5th. The unpublished version of the update ensures full forgiveness for self-employed, freelancers and independent
Lowdown On Qualified Business Income Deduction (QBID)
Lowdown On Qualified Business Income Deduction (QBID) Breif Summary of Qualified Business Income Deduction (QBID) Section 199A deduction (aka Qualified Business Income Deduction -or- QBID for short) is a significant tax break for small business owners that was enacted in 2017. QBID is basically a 20% deduction of net qualified business income. Here is an example of how QBID is calculated FOR EXAMPLE: if you make $100,000 GROSS, the deduction is $20,000, which is then multiplied by your marginal tax rate of 24% which equals $4,800 back in your pocket. (Straightforward?! Well there is more to it than that…) If
PPPFA Updates H.R.7010 – Paycheck Protection Program Flexibility Act of 2020Here are some highlights 1. Extension of “covered period” is now 24 weeks from the date of the loan’s origination, or December 31, 2020, whichever comes earlier. *Optional extension2. You can spend up to 40% of your proceeds on certain non-payroll costs, BUT if you do spend this 40% on non-payroll you must spend 60% on payroll in order to be eligible for full forgiveness.3. You’ll have longer to replace FTEs/restore salaries. As long as the FTEs or salary/hourly wage are restored any time prior to the end of 2020,
Best Practices for Digital Creative Agencies to Manage Ad Spends
Part of our job as accountants is to manage cash flow and make sure the best system of process (SOP’s) are in place to support a firms revenue growth. When a new digital creative agencies comes to us, one of the biggest pain points they have is managing ad spends. While there is not a “one shoe fits all” solution, there are some critical practices that must be followed to ensure successful and profitable outcomes. Managing Ad Spends Starts with the SOW. The first step to running a successful agency is learning how to develop a solid + comprehensive Schedule
3 Reasons Why You Want to Outsource Your Accounting Team
Have you been wondering if you really need a full-time “in-house” accounting staff? Perhaps it’s time to ask yourself if “in-house” is right for you. Here is why you can reimagin your firm while having expert insight, freedom and the ability to save more money. 1. Expert Insight You don’t have to reinvent the wheel. An outsourced firm can bring extensive industry knowledge which can help guide your firm to success. The benefits of having a team that works with multiple companies can be the key to unlocking some of the bottlenecks in your business. Firms of the past often
This is why we will survive this crisis! Heart-to-Heart This is my first entry for a blog series, and as my grandpa used to day, I’m coming at your from the heart. This crisis has shook my world. I have only been able to recall one other recession in my adult life, and in all honesty I was insulated. At the time of the last crisis, I was fortunate to work for a private equity firm whose investments were not as affected as the rest of the world. While I saw the tragic stories in the news, I did not
CARES Act – Paycheck Protection Program Calculator
Click here to copy the spreadsheet we are using for our clients to calculate forgiveness. Also, here is the AICPA Guidelines. Disclaimer: This sheet is for reference only and should not be relied upon as tax, legal, or lending advice. The following is meant to be used as a preliminary tool to estimate the potential forgiveness of the PPP loan proceeds and is not meant to be used as the final calculation of loan forgiveness. We anticipate additional guidance and definitions to be forthcoming over the next few weeks and we will update accordingly. Additional guidance may have a significant
TOP KPI’s FOR CREATIVE AGENCIES
Knowing what metrics to track for your industry is important. Here are some Key Performance Indicators (KPI) to help get you started.
The Ultimate Crisis Playbook
We have been listening and we are taking action! We have worked with other accountants, investors, coaches and more to create this “playbook.” The most important thing a firm can do right now is monitor cash, make a plan, and think ahead. Download your copy of this guide and start today!
Crowdsourced List of PPP Lenders
Crowdsourced List of PPP Lenders Gusto “While some banks are accepting applications from their customers and/or non-customers today, other banks may delay accepting applications until Monday, April 6, or later.” CLICK HERE FOR LIST
Why You Need a Financial Advisor Even More in Uncertain Times
Logistis‘ wonderful CPA, Jeremy Niswonger to lay it down for you! We are living during a period of trying, uncertain times. The current outbreak of the Coronavirus disease (COVID-19), has had a significant impact on the way we go about our daily lives. From how we work, to how we live, to how we relax, no aspect of our lives has gone untouched. With a potential recession on the horizon and so much unknown about how we will move forward as a society, what does that mean for your business? Now more than ever, you will want to turn to your financial advisor
Save money with childcare.
Here is how you can save money by hiring childcare. Let’s face it, child care is expensive! So why not take advantage of your options to get the most out of your child care costs. Below we discuss some quick ways you can earn tax savings on your costs of childcare. Here are some MUSTs! Typically have to be a single filer or MFJ (married filing jointly) Your reason for childcare is “to assure the individual’s (your child) well-being and protection” Total allowed expenses for one child or qualifying individual is up to $3,000 Total allowed expenses for more than
CA Minimum Wages & Employment Law Changes for 2019
Provided by Gusto As usual, the California legislature and various city councils had a busy year regulating the world’s fifth largest economy. Included below are both state and city minimum wage increases as well as summaries of the laws that impact the human resources function. Beginning January 1, 2019, the following minimum hourly wages will be in effect: State—Employers with 26 or more employees: $12.00 State—Employers with 25 or fewer employees: $11.00 Belmont: $13.50 Cupertino: $15.00 El Cerrito: $15.00 Los Altos: $15.00 Mountain View: $15.65 Oakland: $13.80 Palo Alto: $15.00 Richmond: $15.00 San Diego: $12.00 San Jose: $15.00 San Mateo:
CA Employers: Be Prepared for These New Workplace Laws
https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/california-new-workplace-laws-2019.aspx California lawmakers considered a number of workplace-related bills this session addressing sexual-harassment prevention, lactation accommodations, pay equity and more. Gov. Jerry Brown had until the end of September to sign or veto bills. Here’s what employers need to know about new laws that will take effect in 2019 and vetoed bills that may resurface. Anti-Harassment Requirements Employers may need to expand their sexual-harassment-prevention training to comply with new standards. Brown signed SB 1343, which requires businesses with five or more employees to provide sexual-harassment-prevention training to all workers by Jan. 1, 2020, and every two years thereafter. Currently, only businesses