2015 Tax Year

It’s Quarterly Time Again! Second Quarter Due July 31st!

Posted on by Samantha Yeary

In the state of California, employers are required to file both a Quarterly Contribution Return and Report of Wages (DE 9), and a Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) each quarter of the calendar year.  Employers are also required to file a Quarterly Federal Tax Return (941) each quarter of the calendar year.

The deadline to file forms DE 9, DE 9C, and 941 for the second quarter of 2015 is July 31st. Failure to file and/or accurately report all wages and contributions by this date could result in fines and penalties.

It might be tempting to put off paying your payroll taxes and using those funds to pay other debts, but beware! Borrowing from Uncle Sam could cost you more in the end. This is how some businesses get themselves in trouble.

Don’t miss the July 31, 2015 deadline!

Resources

Employment Development Department – http://edd.ca.gov/

International Revenue Service – http://www.irs.gov/

California Paid Sick Leave – What Employers Need To Do NOW

Posted on by Samantha Yeary

As you may already know, the Healthy Workplaces/Healthy Families Act of 2014 (California Paid Sick Leave) went into effect January 1, 2015.

While the accrual of paid sick leave does not begin until July 1, 2015, employers are required to provide labor code notice 2810.5 to all employees hired after 1/1/15 and display the compliant poster provided by the Labor Commissioner as of 1/1/15.

What you need to do now:

  1. Display poster where all employees can see / have access
  2. Provide notice 2810.5 to all employees hired after 1/1/15

Download Poster & Notice 2810.5 here:

Healthy Workplaces/Healthy Families Act of 2014 Poster

Notice 2810.5

What you need to do before July 1st:

  1. Determine the sick leave policy your company will adopt
  2. Determine the best method of accrual / compliance based on your sick leave policy
  3. Draft or amend your policy and prepare to distribute to all employees no later than July 1, 2015
  4. Prepare notice 2810.5 for distribution to all current employees no later than July 8, 2015 (employees hired after 1/1/15 must receive notice immediately as stated above, all other current employees hired prior to 1/1/15 must receive notice by July 8th).
  5. Work with your payroll provider on compliant recordkeeping and wage statement requirements
  6. Develop a strategy for out-of-state employees working in California frequently

Labor laws can be confusing, but non-compliance could be costly and catastrophic to your business. Get started today on your strategy for meeting all of the California sick leave requirements. We will be continually posting important information employers need to know regarding the Healthy Workplace/Healthy Families Act of 2014.

Resources

Department of Industrial Relations: http://www.dir.ca.gov/dlse/Paid_Sick_Leave.htm

Affordable Care Act (ACA) Math of Employer Size

Posted on by Samantha Yeary

As of January 1, 2015, employers employing at least 50 full-time employees, (or a combination of full-time and part-time employees that is equivalent to 50 full-time employees) are considered Applicable Large Employers (ALE’s) and will be subject to the Employer Shared Responsibility Provisions under the Affordable Care Act (ACA).

Employers are required to determine each year, based on their current number of employees, whether they will be considered an applicable large employer for the next year.

Many accounting software programs such as Sage 100 Contractor have built-in features that calculate employee hours per month following the ACA guidelines. Here are some tips from the IRS website on how to calculate full-time and full-time equivalent employees.

Example 1 – Combination of Full and Part Time Employees:

40 full time employees and 20 part time = the equivalent of 50 full-time employees.

Example 2 – Seasonal Workers:

If an employer’s workforce exceeds 50 full-time employees (including full-time equivalents) for 120 days or fewer during a calendar year, and the employees in excess of 50 who were employed during that period of no more than 120 days were seasonal workers, the employer is not considered an ALE.

Example 3 – Average Hours per Calendar Month:

For purposes of the Employer Shared Responsibility provisions, an employee is a full-time employee for a calendar month if he or she averages at least 30 hours of service per week. 130 hours of service in a calendar month is treated as the monthly equivalent of at least 30 hours of service per week.

The total full-time or full-time equivalent hours worked will determine whether or not you are required to file Form 1095-C for each employee. Accurately tracking hours worked per month is required as of 1-1-15. Don’t hesitate to get your ducks in a row. Avoid non-compliance by keeping accurate records now.

Download Draft Forms 1095-C, 1094-C and other Affordable Care Act Forms here
Read our blog on the Model Exchange Notice here

Resources

Internal Revenue Service – Employer Shared Responsibility

http://irs.gov/Affordable-Care-Act/Employers

United State Department of Labor – Employee Benefits Security Administration

http://www.dol.gov/ebsa/healthreform/