Effective November 1, 2021, we have merged in the Los Angeles CPA firm of Spectrum Financial Resources.

If you own a business in California please be aware of these two separate reporting requirements to EDD:

This is our annual reminder to include health insurance and long‐term care insurance amounts on W‐2’s for 2% S Corporation shareholders and their related parties. The following family members employed by the company are considered to be related parties: spouse, children and their spouses, grandchildren and their spouses and parents. The reported amount must include premiums for the employee and any dependents. Any of the shareholder’s siblings are not covered by these reporting rules. Adding the amount of the insurance to a W‐2 does not increase tax liability to the company, shareholder or the related parties. On the contrary, this is the only way to correctly receive an income tax deduction for the insurance. Attached please find additional information on this subject.

In an effort to reduce fraud and identity theft, a provision in the Protecting Americans from Tax Hikes (PATH) Act of 2015 has changed the filing deadlines for employer copies of Forms W-2 and 1099-NEC (changed from 1099-MISC for 2020 filing).

The Internal Revenue Service today reminded retirement plan participants and individual retirement account owners that payments, called required minimum distributions, must usually be taken by Dec. 31.

The Internal Revenue Service today issued the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

A healthy cash flow should be the goal of every business. It will let your company sail smoothly on calm waters and in turbulent weather. Point your compass toward the sales cycle and disbursements cycle to help stay on course.