Updates for the Coming New Year - 2015 As the new year begins, we would like to take a moment to notify you of some important law changes that will effect each and every one of us. Some of the new changes effective January 1, 2015 are: ·California minimum wage will remain at $9 per hour. · The wage base for Social Security (OASDI) withholding current wage base will increase to $118,500 from the prior year of $117,000. · There is no wage base limit for Medicare tax; however, the rate will increase by 0.9% for wages in excess of $200,000 for single persons and $250,000 for married couples filing jointly. ·The OASDI rate will remain at 6.2% (unless a last minute change is made) and Medicare rate will remain at 1.45% which totals 7.65%. ·The wage base for State Disability Insurance (SDI) will increase to $104,378 from the prior year of $101,636. ·The SDI rate will decrease to .9%. The maximum amount to withhold for 2015 is $939.40. ·The standard business mileage rate increased to 57.5 cents per mile. ·The California sales tax rate will remain at 8% for most of Riverside county and will remain at 9% for Cathedral City and Palm Springs. ·The State Board of Equalization is requiring all sales tax returns and payments to be e-filed. ·The Employment Development Department is still requiring the registering of all Independent Contractors paid more than $600.00. This is be done using form DE542, Report of Independent Contractors. The EDD may assess a penalty of $24.00 for each failure to comply within the required time frame. Effective July 1, 2015, the Healthy Workplaces, Healthy Families Act of 2014 requires employers to provide paid sick days to employees who work in California for 30 or more days within a year from the commencement of employment. They are to be accrued at a rate of no less than one hour for every 30 hours worked. An employee would be entitled to use accrued sick days beginning on the 90th day of employment. An employer may limit an employee’s use of paid sick days to 24 hours or 3 days in each year of employment. The Act prohibits an employer from discriminating or retaliating against an employee who requests paid sick days and requires employers to satisfy specified posting and notice and recordkeeping requirements. As in prior years, forms 1099 and 1096 will soon need to be prepared. 1099s are required to be distributed to the payee by January 31, 2015. The filing deadline is February 28, 2015. Please be advised that the Internal Revenue Service is continuing to assess penalties ranging from $30 to $100 per 1099 which is filed late, or not filed at all, if you should be subject to examination. The form used to get the required information from the payee is a W-9. This form should be acquired for each person paid any amounts for legal services rendered and each person paid more than $600.00 for services rendered or for rents paid (i.e.: office building rent). Although corporations are exempt from this requirement, professional corporations are not. Thank you for the opportunity to be of service to you in 2014 and the coming New Year.
Posted on: Thu, 01 Jan 2015 00:15:35 +0000
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