Online filing with the EDD will be mandatory for Companies with 10+ Employees in 2017


Beginning Sunday, January 1, 2017, employers with 10 or more employees will be required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department (EDD). Employees with fewer than 10 employees will be subject to this requirement beginning January 1, 2018.

This mandate also applies to out-of-state employers who report payroll taxes to the EDD.

The e-file and e-pay mandate requires the following returns, reports, and payments to be electronically submitted: Continue reading

How to Plan for Health Care Reform in 2013 and 2014 and Avoid Penalties

by Adam Minow, CPA

ImageIn the coming months, many Americans will need to make a decision regarding their health care insurance.  This decision is being prompted by the Patient Protection and Affordable Care Act that President Obama signed into law in 2010, which is also commonly referred to as Health Care Reform or Obamacare. Individuals who do not obtain health insurance coverage by March 31, 2014 may face penalties of up to 1.0% of their income in 2014 (the “Individual Mandate”).  Those penalties increase to up to 2.5% of income in 2016.  The Individual Mandate generally applies to self-employed individuals, unemployed individuals and individuals who are not already covered by another qualifying plan, including employer-sponsored plans, Medicare and COBRA. Continue reading

Should Your New Business Select an LLC, S-Corp, or Both?

Business owners–and even attorneys and accountants–can get twisted up in the debate over which is best, the LLC or the S corporation.  But it’s not necessarily an either/or proposition.  Rather, you can set up an LLC first, and later elect to have the LLC treated as an S corporation.  If your LLC operates an active trade or business, and payroll taxes (SECA taxes) on the owner or owners are high, you may find that an S corporation election is the best choice.

Both organizational forms share the characteristic of “passing-through” their income to the owner(s).  Both also provide their owner(s) limited liability protection.  But each has some distinguishing features, too. You, as a new business owner, will want to consider the differences as you choose the form for your enterprise.

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How to Use a Buy-Out Agreement to Protect Your Business From the Death, Disability, Retirement, or Voluntary Exit of a Business Partner

by Jennifer A. Grady, Esq.

Failing to create Imagea formal transition plan in the event of the death, disability, retirement, or divorce of the business owner, or the transfer or sale of the business, is a drastic mistake that is frequently made by the owners of closely-held corporations.  This lack of planning can be fatal to a business that does not have a formula for valuing tangible property, such as vehicles, real estate, and equipment; and intangible property, such as licenses, trade names, patents, trademarks, client lists, and goodwill.

A buy-out agreement, also known as a buy-sell agreement, is a legally binding contract between co-owners of a business that governs the situation if and when a co-owner dies or leaves the business.  Every co-owned business needs this agreement the moment the business is formed, or as soon as possible after the formation. A buy-out agreement not only protects the remaining business owners when a co-owner intends to leave the company, but also provides protection for the owner who leaves the business.  A buyout agreement acts as a sort of “premarital agreement” to protect each owner’s interests by setting the price and terms for a buyout.  It is sometimes referred to as a “business will.” Continue reading

DOMA UPDATE: Three Immigration Success Stories for Same-Sex Couples Following the Repeal of the Defense of Marriage Act

by Jennifer A. Grady, Esq.

In light of the recent ruling by the Supreme Court of the United States, which struck down Section 3 of the Defense of Marriage Act (DOMA) on June 26, 2013, the federal government must recognize the legal marriages of same-sex couples with regard to federal benefits, which includes immigration law relief.  Since July 2013, immigrant beneficiaries of petitions filed by their same-sex U.S. citizen spouse have finally been able to obtain a Green Card, which grants them status as a Legal Permanent Resident and a path to U.S. citizenship. Continue reading