Vision Payroll

November 22, 2011

California Announces 2012 UI, ETT, and EDI Rates

Filed under: News — Tags: , , , , — Vision @ 6:29 pm
Pam Harris, Chief Deputy Director, California EDD
Pam Harris, Chief Deputy Director, California EDD
The California Employment Development Department (EDD) recently released the 2012 UI, ETT, and SDI rates. An historical compilation of prior year rates is available in Form DE 3395.

2012 UI, ETT, and SDI Rates

The UI rate schedule in effect for 2012 is Schedule “F+.” This is Schedule F plus a 15% emergency surcharge, rounded to the nearest tenth. Schedule “F+” provides for UI contribution rates from 1.5% to 6.2%.

Exception for Employers Subject to §977(c)

Exception: Employers subject to §977(c) of the CUIC must pay at the highest rate provided by law plus an additional 2%.

Taxable Wage Limit Remains at $7,000

The taxable wage limit is $7,000 per employee.

The Voluntary UI program Is Not in Effect for 2012

The Employment Training Tax (ETT) rate for 2012 is 0.1%. The UI and ETT taxable wage limit remains at $7,000 per employee per calendar year.

SDI Rate Is Set at 1.0%

The State Disability Insurance (SDI) withholding rate for 2012 is 1.0%. The taxable wage limit is $95,585 for each employee per calendar year. The maximum to withhold for each employee is $955.85.

Notices Will Be Mailed December 30

UI, ETT, and SDI tax rates are combined on a single rate notice, Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088). The DE 2088 will be mailed in December, with a mailing date of December 30. Employers will have 60 days from the December 30 mailing date to protest any item on the DE 2088 except SDI and ETT, which are specifically set by law.

New Employer Rate Set at 3.4%

For new employers, the UI tax rate is 3.4% for up to three years. Owners that purchased an established business have the option of acquiring the previous owner’s UI tax rate.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the California unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

November 21, 2011

California Is a Credit Reduction State for 2011

Filed under: News — Tags: , , , , , — Vision @ 6:00 pm
Pam Harris, Chief Deputy Director, California EDD
Pam Harris, Chief Deputy Director, California EDD
According to the California Employment Development Department, California will be a FUTA tax credit reduction state in 2011.

Standard Credit Rates Is 5.4% for 2011

Generally, employers who pay their state unemployment tax by the due date for filing Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, receive a credit 5.4% against their Federal Unemployment Tax Act (FUTA) tax. This credit is claimed on Form 940.

FUTA Wage Base Is $7,000 for 2011

The FUTA wage base is $7,000 for 2011.

Employers in Certain States Are Subject To Credit Reduction

Federal law provides for a reduction in the FUTA tax credit when a state has outstanding federal loans for two years. The credit reduction is calculated on Schedule A of Form 940.

California Is Subject To Credit Reduction for First Time

Since California was not a credit reduction state in 2010, the credit reduction rate will be 0.3% for 2011. California employers will receive a reduced credit of 5.1% for 2011. For the first six months of 2011, the FUTA tax rate was 6.2% and for the last six months of 2011, the FUTA tax rate has been 6.0%. Therefore, California employers will pay an effective rate of 1.1% for the first six months of 2011 and 0.9% for the last six months of 2011. The credit reduction will continue to increase by 0.3 percentage points each year until the loan is paid, e.g., 0.6% in 2012, 0.9% in 2013, etc.

Vision Payroll Will Calculate the Credit Reduction for All California Clients

Contact Vision Payroll if you have any further questions on the California credit reduction.

November 20, 2011

California Releases California Employer’s Guide 2012 (DE 44)

Pam Harris, Chief Deputy Director, California EDD
Pam Harris, Chief Deputy Director, California EDD
The California Employment Development Department (EDD) has announced the release of the California Employer’s Guide 2012 DE 44 Rev. 38 (the Guide). The Guide is published to help employers understand their rights and responsibilities.

Information Presented in Chronological Sequence

Information in the Guide is presented in a chronological sequence, beginning with what employers need to know or do first, such as who is an employer, when to register, who is an employee, and what are wages.

California Generally Follows Federal Law

To simplify reporting requirements, the EDD follows federal tax guidelines and due dates whenever possible; however, California laws and rates may differ from federal laws and rates. The EDD administers payroll tax reporting laws according to the California Unemployment Insurance Code (CUIC) and California Code of Regulations (CCR).

The Guide Is an Important Resource

Regardless of the size of the business, the Guide is an important resource on the procedures required for compliance with California payroll tax laws. It clarifies both the provisions of the CUIC and CCR and their application to the business.

The Guide Provides General Information

The Guide provides general information that applies to the majority of employers. The Guide provides references to additional information on specialized topics. Information on detailed or complex issues that only apply to a small number of employers is not included in the Guide.

Contact Vision Payroll Today

Contact Vision Payroll if you have further questions on the Guide.

July 16, 2011

Marin County Employers May Request 60-Day Extension

Filed under: News — Tags: , , , — Vision @ 2:52 pm
Marin County Employers May Request 60-Day Extension
Marin County Employers May Request 60-Day Extension
According to the California Employment Development Department (EDD), employers in the county of Marin directly affected by the severe rainstorms may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC).

Marin County in a Declared State of Emergency Due to Severe Rainstorms

Written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay.

Vision Payroll Can Assist Marin County Clients with Extension Application

Contact Vision Payroll if you’ve been affected and need to file the extension request.

March 21, 2011

Mendocino and San Luis Obispo County Employers May Request 60-Day Extension

Filed under: News — Tags: , , , , — Vision @ 6:00 pm
Mendocino and San Luis Obispo County Employers May Request 60-Day Extension
Mendocino and San Luis Obispo County Employers May Request 60-Day Extension
According to the California Employment Development Department (EDD), employers in the counties of Mendocino and San Luis Obispo directly affected by the water surge caused by the tsunami may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC).

Mendocino and San Luis Obispo Counties in a Declared State of Emergency Due to Water Surge Caused by the Tsunami

Written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay.

Vision Payroll Can Assist Mendocino and San Luis Obispo Counties Clients with Extension Application

Contact Vision Payroll if you’ve been affected and need to file the extension request.

March 14, 2011

Del Norte, Humboldt, San Mateo, and Santa Cruz County Employers May Request 60-Day Extension

Del Norte, Humboldt, San Mateo, and Santa Cruz County Employers May Request 60-Day Extension
Del Norte, Humboldt, San Mateo, and Santa Cruz County Employers May Request 60-Day Extension
According to the California Employment Development Department (EDD), employers in the counties of Del Norte, Humboldt, San Mateo, and Santa Cruz directly affected by the water surge caused by the tsunami may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC).

Del Norte, Humboldt, San Mateo, and Santa Cruz Counties in a Declared State of Emergency Due to Water Surge Caused by the Tsunami

Written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay.

Vision Payroll Can Assist Del Norte, Humboldt, San Mateo, and Santa Cruz Counties Clients with Extension Application

Contact Vision Payroll if you’ve been affected and need to file the extension request.

March 12, 2011

California Clarifies Tax Treatment of Health Care Coverage of Adult Children

California Clarifies Tax Treatment of Health Care Coverage of Adult Children
California Clarifies Tax Treatment of Health Care Coverage of Adult Children
The California Employment Development Department (EDD) has released a clarification to the original guidance provided on the tax treatment of health care coverage extended to adult children.

Patient Protection and Affordable Care Act Requires Extension up to Age 26

The Patient Protection and Affordable Care Act requires plans and issuers that offer dependent coverage to make the coverage available until a child reaches the age of 26. Both married and unmarried children qualify for this coverage.

Employment Taxes not Applicable To the Value of This Coverage

According to the EDD:

The extended coverage to adult children under the federal legislation referenced above is not considered wages that are subject to Unemployment Insurance (UI), Employment Training Tax (ETT), or State Disability Insurance (SDI), taxes. Existing State law, Section 931 of the California Unemployment Insurance Code (CUIC) excludes payments for employer-provided coverage under accident or health plans to a dependent from being considered taxable income for UI, ETT, or SDI purposes.

Section 931 of the CUIC does not apply to California Personal Income Tax (PIT) provisions. The fair market value for health care coverage to an adult child under the new federal provision is considered reportable income for California PIT purposes and subject to California PIT withholding. The fair market value of the health care coverage is set at the discretion of the employer.

Further Changes Are Expected In California and Other States

Check VisionPayroll.com frequently for updates to taxation of this coverage in California and other states.

March 8, 2011

Modoc County Employers May Request 60-Day Extension

Filed under: News — Tags: , , , — Vision @ 3:58 pm
Modoc County Employers May Request 60-Day Extension
Modoc County Employers May Request 60-Day Extension
According to the California Employment Development Department (EDD), employers in the county of Modoc directly affected by the melting snow pack causing flooding may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC).

Modoc County in a Declared State of Emergency Due To Melting Snow Pack Causing Flooding

Written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay.

Vision Payroll Can Assist Modoc County Clients with Extension Application

Contact Vision Payrollif you’ve been affected and need to file the extension request.

January 30, 2011

Mariposa County Employers May Request 60-Day Extension

Filed under: News — Tags: , , , — Vision @ 5:44 pm
Mariposa County Employers May Request 60-Day Extension
Mariposa County Employers May Request 60-Day Extension
According to the California Employment Development Department (EDD), employers in the county of Mariposa directly affected by the winter storms may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC).

Mariposa County in a Declared State of Emergency Due to Winter Storms

Written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay.

Vision Payroll Can Assist Mariposa County Clients with Extension Application

Contact Vision Payroll if you’ve been affected and need to file the extension request.

December 27, 2010

Kings, Los Angeles, Santa Barbara, Inyo, & San Diego County Employers May Request 60-Day Extension

Kings, Los Angeles, Santa Barbara, Inyo, & San Diego County Employers May Request 60-Day Extension
Kings, Los Angeles, Santa Barbara, Inyo, & San Diego County Employers May Request 60-Day Extension
According to the California Employment Development Department (EDD), employers in the counties of Kings, Los Angeles, Santa Barbara, Inyo, & San Diego directly affected by the winter storms may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC).

Kings, Los Angeles, Santa Barbara, Inyo, & San Diego Counties in a Declared State of Emergency Due to Winter Storms

Written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay.

Vision Payroll Can Assist Kings, Los Angeles, Santa Barbara, Inyo, & San Diego County Clients with Extension Application

Contact Vision Payroll if you’ve been affected and need to file the extension request.

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