rs-california-payroll-tax Archives - Page 5 of 6

How a Tax Attorney Can Help with Your Tax Lien

April 23, 2026December 21, 2016 by Brotman Law

Key Takeaways

All three agencies can issue a lien against personal property, real or personal, tangible or intangible.
The tax law is not only more complex in California, but the state tax representatives are generally more difficult to deal with.
A tax attorney helps to level the playing field when dealing with the state of California and their representatives.

Our last few posts have been about how the various California state tax agencies handle tax liens.

A brief review:

The Board of Equalization (BOE) administers the sales and use tax.
The Franchise Tax Board (FTB) administers and enforces the individual and corporate state income tax laws and property taxes.
The Employee Development Department (EDD) administers payroll tax and unemployment and disability insurance for the state.

Everything You Need to Know About Tax Liens, Pt. 2

April 23, 2026November 23, 2016 by Brotman Law

Everything You Need To Know About Tax Liens 2

In Part 1, you learned what a lien is, how taxpayers are notified of a lien, and what elements are required for a valid lien. In Part 2, you will read how a lien can impact your credit report, who has access to a list of those with liens, and what happens during bankruptcy and other financial events if a lien is involved.

Everything You Need to Know About Tax Liens, Pt. 1

April 23, 2026November 16, 2016 by Brotman Law

The tax community is a house somewhat divided over the effectiveness of liens. On the one hand, the government needs to protect their interests in regards to taxes owed them. On the other hand, tax liens are filed against taxpayers with few or no assets to file a lien against.

What Happens If You Misclassified a Worker?

April 23, 2026October 19, 2016 by Brotman Law

Key Takeaways

What does the employment classification of workers have to do with payroll tax audits.
Previously, we have posted about the difference between employees and independent contractors in the eyes of the IRS and the EDD. Here is a quick reminder.
There is an entire list of factors the EDD (and the IRS) use to determine whether or not someone is an employee. No single factor can be used to make the determination.

What does the employment classification of workers have to do with payroll tax audits?

Everything.

When the Employment Development Department of the State of California decides to audit, the classification of your workers is the auditor’s sole concern. Additionally, the IRS often adopts the results of the EDD audit to use in assessing federal penalties.

For this reason, it is critical to classify your workers properly and supply only the information the auditor asks for, nothing more.

What Are Your Payroll Tax Responsibilities?

April 23, 2026October 12, 2016 by Brotman Law

Key Takeaways

Such employers see this as a cost-saving for their businesses because they not only do not have to pay taxes, they do not have to pay for someone to administer employee taxes.
Social Security and Medicare, otherwise known as FICA, is paid quarterly. FUTA, the federal unemployment tax act, requires an annual return. Employers are required to provide an IRS Form W-2 detailing the wage withholdings.
Very small employers, defined as those with an estimated tax liability of $1,000 or less for a calendar year can file annually.

In a previous post, we talked about the difference between independent contractors and employees. One of the biggest differences, and one that often drives intentional worker misclassification, is that employers must withhold and pay payroll taxes for employees whereas they do not for independent contractors.

Classifying Employees and Independent Contractors

April 23, 2026October 5, 2016 by Brotman Law

You have hired someone to do work for you. Is that person an employee or an independent contractor?

The answer is important because misclassifying an employee as an independent contractor, whether intentionally or through ignorance, can land you in court and in debt for payroll taxes.

There are several tests from a variety of regulatory agencies that are used to try to determine employment status and occasionally changes are made to the standards. Even if you classified certain of your workers correctly before, you might need to revisit the question to ensure you remain in compliance.

California Payroll Tax Problems and the EDD

April 23, 2026August 24, 2016 by Brotman Law

Part of being a business owner is filing and paying payroll taxes for your employees. In California, the Employment Development Department, or EDD, administers these taxes. In addition to receiving tax filings and payments, the EDD also identifies and investigates potential infractions of tax law.

What do you do if you develop tax problems and find yourself on the receiving end of an audit?

California Self Employment Tax 2022: What You Must Know!

April 13, 2026July 6, 2016 by Brotman Law

With so much conflicting information about the California self employment tax process floating around online, it can often be difficult for a lot of people to figure out precisely what these taxes are, how they’re calculated, paid, and what the consequences of non-payment might be.

What Are the California Payroll Tax Penalties If I Don’t Pay?

April 23, 2026June 29, 2016 by Brotman Law

What Are the California Payroll Tax Penalties | Brotman Law

Key Takeaways

Filing of returns and payment of taxes can both be done online or mailed to the EDD.
There are a number of penalties that may be levied for underpayment or non payment of taxes on top of the standard late fees.
Sometimes an employer may operate a dual system, where they report some of the wages paid to a worker, but fail to report others – for example, overtime monies paid in cash.

As an employer, you are obliged to file payroll tax returns and pay payroll taxes. While the obligation can feel burdensome, especially when times are tough and cash flow is slow, this is obligation that you must never delay. Substantial penalties may accrue to any employer who doesn’t file correctly, leaving you in a far worse situation than before.

How to Handle an EDD Lien: Notification, Contributions, and Penalties

April 23, 2026May 25, 2016 by Brotman Law

As a business owner, you are responsible for paying payroll taxes and filing periodic reports in accordance with your obligations. If you do not do so, you risk having a lien recorded against your property by the EDD. The details of tax liens are confusing to many people, but it’s important to understand what a lien is, why they are issued, and what your options are to avoid or discharge the lien.