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

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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

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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.

Read the full article: http://bit.ly/NaHUnO