Effective April 1, 2009, California’s base sales tax rate increased 1% to 8.25%. Yes this is not the tax rate paid by residents of California as each county has added percentages to the state’s base sales tax rate. In effect, most Californians are now paying an average of 9% on their retail purchases. In Los Angeles County the new sales [...]

Beginning January 1, 2009, if your personal income tax liability to California exceeds $80,000, or if you are required to make an estimated tax, or extension payment, that exceeds $20,000, you must send the payment electronically to the California Franchise Tax Board. Once either of these preconditions is met, all future payments regardless [...]

With the economy in a spiral, businesses both large and small are faced with the unpleasant task of implementing layoffs. For large businesses, they must comply with the Worker Adjustment and Retraining Notification Act (WARN Act). Most small businesses, while exempt from the WARN Act, are barely staying afloat in a sea of potentially endless liabilities where the mere threat of a wrongful termination claim inches the company ever closer to having to declare bankruptcy. All business facing the potential of layoffs should familiarize themselves with: (1) [...]

For 2009, the standard mileage rate deduction for business use of a vehicle is 55 cents per mile. Pursuant to California Labor Code §2802, California employers are required to reimburse employees for all expenses incurred by the employee in performing their duties, including expenses for travel, dining, and mileage (other than to and from work/home). The employee cannot agree to waive this right to receive reimbursement.

The California Labor Commissioner has also stated that any California employer who reimburses its employees at less than the standard IRS mileage rate (55 Cents for 2009) [...]

The 2009 IRS Tax Calendar for Small Businesses and the Self-Employed (Publication 1518) is now available in English and Spanish. The Tax Calendar is a handy resource to help small business owners meet their tax obligations, and is filled with useful information on common tax filing dates, retirement plans, electronic filing and paying options, forms and more.

Each page highlights different tax issues and tips that may be relevant to small-business owners.