STORM-LARSEN & COMPANY, INC.
TAX INFORMATION FOR 2008

GENERAL INFORMATION - For Businesses

EXTENSIONS: FILING A REQUEST FOR AN EXTENSION OF TIME TO FILE PERSONAL OR CORPORATE TAX RETURNS DOES NOT EXTEND THE TIME FOR PAYMENT OF TAX DUE. THE AMOUNT OF TAX DUE MUST BE PAID WITH EXTENSIONS. IF THE AMOUNT IS NOT PAID AT THE TIME OF THE EXTENSION A PENALTY OF UP TO 25% OF TAX DUE CAN BE LEVIED.

SOCIAL SECURITY TAX: THIS TAX IS STILL DIVIDED INTO TWO PARTS WITH SEPARATE LIMITATIONS. THE RATE FOR SOCIAL SECURITY IS 6.2% FOR THE EMPLOYER'S SHARE AND THE EMPLOYEE'S SHARE. THIS LIMIT HAS BEEN RAISED TO $102,000. THE TOTAL DOLLAR LIMIT FOR THIS PART IS $6,324.00. THE RATE FOR MEDICARE IS 1.45% FOR THE EMPLOYER'S AND THE EMPLOYEE'S SHARE. THERE IS NO LIMIT TO THIS PORTION OF THE TAX. THE TOTAL DOLLAR LIMIT FOR THIS PART IS NOT LIMITED.

SDI: THE SDI RATE WILL DECREASE TO .8%. THE LIMIT WILL REMAIN AT $83,389.00 THE DOLLAR LIMIT IS $693.58.

SELF-EMPLOYED INDIVIDUALS MAY CHOOSE TO PARTICIPATE IN AN "ELECTIVE COVERAGE PROGRAM". CONTACT US OR THE EDD AT WWW.EDD.CA.GOV.

SELF-EMPLOYMENT TAX: THIS TAX IS STILL DIVIDED INTO TWO PARTS WITH SEPARATE LIMITATIONS. THE RATE FOR SOCIAL SECURITY IS 12.4%. THIS LIMIT HAS BEEN RAISED TO $12,648.00. THE RATE FOR MEDICARE IS 2.9%. THERE IS NO LIMIT TO THIS PORTION OF THE TAX. THE TOTAL DOLLAR AMOUNT FOR THIS PART IS ALSO NOT LIMITED. YOU STILL GET AN ADJUSTMENT TO INCOME OF ½ THE SOCIAL SECURITY TAX DUE.

401K DEFERRALS: THE LIMITATION ON THE EXCLUSION FOR ELECTIVE DEFERRALS STAYS AT $15,500.00. AGE 50+ IS $20,500.00.

MILEAGE RATE: THE OPTIONAL MILEAGE ALLOWANCE FOR THE YEAR 2008 IS 50.5 CENTS A MILE FOR BUSINESS. THE OPTIONAL MILEAGE ALLOWANCE IS 14 CENTS A MILE FOR CHARITY AND 19 CENTS A MILE FOR MEDICAL AND MOVING.

MINIMUM WAGE: THE CALIFORNIA MINIMUM WAGE FOR THE YEAR 2008 WILL INCREASE TO $8.00 PER HOUR.

EARNINGS AFFECTING SOCIAL SECURITY BENEFITS: THOSE WHO ARE ELIGIBLE TO RECEIVE SOCIAL SECURITY BENEFITS MAY HAVE THEIR BENEFITS REDUCED BECAUSE OF EARNED INCOME RECEIVED. THE LIMITS FOR EARNED INCOME ARE AS FOLLOWS: IF YOU ARE UNDER 65 YOU CAN EARN UP TO $13,560.00 WITHOUT AFFECTING YOUR SOCIAL SECURITY BENEFITS. IF YOU ARE 65 OR OLDER YOU CAN HAVE UNLIMITED EARNED INCOME WITHOUT AFFECTING YOUR SOCIAL SECURITY BENEFITS

DEADBEAT PARENTS: IN AN EFFORT TO TRACK DOWN PARENTS WHO ARE NOT PAYING THEIR CHILD SUPPORT, THE STATE HAS INSTITUTED A REPORTING REQUIREMENT FOR NEW EMPLOYEE HIRING. IF YOU ARE ONE OF 17 INDUSTRIES OUTLINED BY THE STATE AND YOU HAVE MORE THAN 4 EMPLOYEES, YOU WILL BE REQUIRED TO FILE. YOU SHOULD BE NOTIFIED BY THE STATE IF YOU ARE REQUIRED TO FILE.

PAYMENTS TO ATTORNEYS MUST BE REPORTED ON FORM 1099-MISC: A PERSON ENGAGED IN A TRADE OR BUSINESS THAT MAKES A PAYMENT IN THE COURSE OF THAT TRADE OR BUSINESS TO AN ATTORNEY IN CONNECTION WITH LEGAL SERVICES (WHETHER OR NOT THE SERVICES WERE PERFORMED FOR THE PAYOR) MUST, WITH EXCEPTIONS, FILE AN INFORMATION RETURN ON FORM 1099-MISC WITH THE IRS FOR THE CALENDAR YEAR IN WHICH THE PAYMENT IS MADE (EFFECTIVE AFTER 1997).

* WARNING: EVEN A $50.00 PAYMENT TO AN ATTORNEY REQUIRES A FORM 1099

PAYOR MUST REQUEST AND ATTORNEY MUST FURNISH TIN (TAXPAYERS INFORMATION NUMBER). GENERALLY, IF THE ATTORNEY DOES NOT FURNISH THE
TIN, THE PAYMENT IS SUBJECT TO BACKUP WITHHOLDING. IF THE ATTORNEY FAILS TO PROVIDE HIS OR HER TIN, 31% BACKUP WITHHOLDING ON THE GROSS AMOUNT APPLIES.

WORKERS' COMPENSATION ISSUES

OVERTIME PAY: BE SURE TO EXCLUDE THE EXCESS OVERTIME PAY FROM THE WAGES REPORTED TO YOUR WORKMAN'S COMPENSATION CARRIER. ONLY THE EXCESS IS EXCLUDABLE.

SUBCONTRACTORS OR OUTSIDE CONTRACTORS: THE MONEY YOU PAY TO SUBCONTRACTORS OR OUTSIDE CONTRACTORS IS SUBJECT TO WORKMAN'S COMPENSATION UNLESS YOU CAN VERIFY TO YOUR WORKMAN'S COMPENSATION CARRIER THAT THE SUBCONTRACTOR OR OUTSIDE SUBCONTRACTOR IS LICENSED (IF HIS OCCUPATION IS ONE THAT REQUIRES A STATE LICENSE) OR THAT THEY CARRY THEIR OWN WORKMAN'S COMPENSATION INSURANCE, AND HAVE THEIR OWN BUSINESS LICENSE.
YOU SHOULD OBTAIN CERTIFICATE OF INSURANCE FROM SUBCONTRACTOR SHOWING PROOF OF INSURANCE.

STATE BOARD OF EQUALIZATION ISSUES

USE TAX FOR BUSINESSES: IF YOU ARE INVOLVED IN ORDERING SUPPLIES OR MATERIALS OUT OF STATE TO AVOID SALES TAX, YOU SHOULD BE AWARE THAT YOU ARE SUBJECT TO USE TAX ON THE DOLLAR AMOUNT PAID FOR THESE ITEMS. USE TAX RATE IS THE SAME AS THE RATE YOU USE FOR OTHER PURCHASES IN YOUR COUNTY.

TAX VARIATIONS BY COUNTY: WITH THE VARIATIONS IN SALES TAX FROM COUNTY TO COUNTY, IT IS IMPORTANT TO UNDERSTAND WHICH RATE YOU CHARGE. SALES TAX IS IMPOSED ACCORDING TO THE COUNTY OF YOUR BUSINESS SITUS UNLESS YOU SHIP BY YOUR OWN CARRIERS (YOUR OWN TRUCKS, AS OPPOSED TO UPS OR THE POSTAL SERVICE). IF YOU USE YOUR OWN CARRIERS, SALES TAX IS IMPOSED AT THE RATE OF COUNTY OF DELIVERY.

INTERNAL REVENUE SERVICE ISSUES

IRS AUDITS: WE HAVE HAD AN INCREASED NUMBER OF AUDITS IN THE PAST YEAR FOR CORPORATIONS, S-CORPORATIONS, SCHEDULE C AND SOLE PROPRETOR. IF YOU HAVE ANY QUESTIONS PLEASE CALL US.

NOTE PAYABLE/RECEIVABLE STOCKHOLDER: ALL AMOUNTS LOANED TO OR BORROWED FROM YOUR CORPORATION OVER $10,000 MUST BE SUBSTANTIATED BY A NOTE STATING INTEREST RATES AND REQUIRED PAYMENTS. TERMS OF THIS NOTE MUST BE MET WITH AT LEAST YEARLY PAYMENTS OF INTEREST. IF INTEREST AND PRINCIPAL ARE NOT PAID THEY CAN BECOME TAXABLE INCOME TO YOU. RATE THIS YEAR IS 5%.

BUSINESS TRAVEL AND ENTERTAINMENT: BUSINESS TRAVEL, PROMOTION AND ENTERTAINMENT DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS ARE LIMITED. GENERAL ENTERTAINMENT, BUSINESS MEALS AND MEALS WHILE TRAVELING ARE LIMITED TO 50% OF THE ACTUAL EXPENSES. TRAVEL AND CONVENTION EXPENSES ARE STILL 100% DEDUCTIBLE. PLEASE SEPARATE EXPENSES FOR THESE DIFFERENT CATEGORIES SO YOU CAN TAKE FULL ADVANTAGE OF ALL DEDUCTIONS. IN ORDER TO CLAIM ANY DEDUCTIONS, A TAXPAYER MUST PROVIDE ADEQUATE RECORDS SHOWING:
1. AMOUNT OF EACH EXPENSE
2. TIME AND PLACE OF ENTERTAINMENT OR MEAL
3. DATES AND LOCATIONS OF TRAVEL
4. BUSINESS PURPOSE
5. BUSINESS RELATIONSHIP OF TAXPAYER TO EACH PERSON BEING ENTERTAINED
6. IDENTITY OF ALL PERSONS AT MEAL
7. FOR AMOUNTS UNDER $75.00 THE RULES ARE RELAXED SOME. BUT THERE STILL
MUST BE A BUSINESS REASON FOR THE EXPENSE

FRINGE BENEFITS: THE FEDERAL GOVERNMENT HAS ALSO BECOME MORE AGGRESSIVE ABOUT THE REPORTING OF TAXABLE AND NON-TAXABLE FRINGE BENEFITS. GENERALLY, THESE COULD BE AUTO/TRAVEL EXPENSES AND UNIFORM ALLOWANCES, DEPENDENT CARE BENEFITS, ETC. AUTO/TRAVEL EXPENSES ARE NOT REPORTED AT ALL IF EMPLOYEES SUBMIT RECEIPTS AND ARE REIMBURSED BASED ON 50.5 CENTS A MILE FOR 2008 OR ACTUAL EXPENSES. IF AN ALLOWANCE IS GIVEN, THIS BECOMES COMPENSATION TO THE EMPLOYEE AND IS TAXABLE FOR FICA AND SDI PURPOSES. IT MUST ALSO BE ADDED TO WAGES ON THE EMPLOYEES' W-2. DEPENDENT CARE BENEFITS ARE NOT TAXABLE FOR EITHER FICA OR INCOME TAX, BUT DO APPEAR ON THE W-2 SEPARATELY FROM COMPENSATION IN BOX 10.

FORM 945, 'ANNUAL RETURN OF WITHHELD FEDERAL INCOME TAX': BEGINNING JANUARY 1, 1994, TAXPAYERS WHO WITHHOLD INCOME TAX (INCLUDING BACKUP WITHHOLDING) FORM NON-PAYROLL PAYMENTS MADE AFTER 1993, MUST FILE FORM 945, 'ANNUAL RETURN OF WITHHELD FEDERAL INCOME TAX'. FOR 2006 FORM 945 MUST HAVE BEEN FILED BY JANUARY 31, 2007. THIS RETURN MUST BE FILED ANNUALLY.

NON-PAYROLL PAYMENTS INCLUDE THE FOLLOWING: PENSION, ANNUITIES, IRAs, MILITARY RETIREMENT, GAMBLING WINNINGS AND BACKUP WITHHOLDING. TAXPAYERS MAY NO LONGER REPORT NON-PAYROLL FORM 941 OR 941E. SEPARATE DEPOSITS ARE REQUIRED FOR NON-PAYROLL (FORM 945) INCOME TAX WITHHOLDING ON PAYMENTS MADE AFTER 2000. TAXPAYERS SHOULD NOT COMBINE DEPOSITS FROM FORM 941 AND FORM 945 TAX LIABILITIES. ALTHOUGH PAYROLL AND NON-PAYROLL LIABILITIES MUST BE REPORTED AND DEPOSITED SEPARATELY, THE RULES ON HOW AND WHEN TO DEPOSIT REMAIN BASICALLY THE SAME.

W-2 FORMS: W-2 FILING REQUIREMENTS CHANGE FOR DEFUNCT BUSINESS - BUSINESSES THAT CLOSE THEIR DOORS AFTER 12/31/00 MUST FILE W-2'S SOONER. FINAL REGULATIONS REQUIRE THAT THE EMPLOYER SEND W-2'S TO THE EMPLOYEES BY THE DATE THAT THE FINAL FORM 941 IS DUE, WHICH IS THE END OF THE MONTH AFTER THE CALENDAR QUARTER IN WHICH OPERATIONS END. FORM W-3 AND THE W-2'S MUST BE FILED WITH SSA ON OR BEFORE THE LAST DAY OF THE SECOND CALENDAR MONTH AFTER THE PERIOD COVERED BY THE EMPLOYER'S FINAL FORM 941.

W-4 FORMS: EMPLOYEES SHOULD FILL OUT A NEW W-4 FORM EACH YEAR. IF 11 OR MORE ALLOWANCES ARE CLAIMED, A COPY SHOULD BE SENT TO THE FTB. IF NO W-4 IS SUBMITTED YOU SHOULD WITHHOLD AS IF THE EMPLOYEE WERE SINGLE WITH ZERO ALLOWANCES.

STATE OF CALIFORNIA ISSUES

OUTSIDE SERVICES AND/OR SUBCONTRACTORS: YOU MUST MAINTAIN A RECORD OF AMOUNTS YOU PAY EACH INDIVIDUAL OR COMPANY. A 1099 FEDERAL FORM MUST BE PREPARED FOR EACH PERSON OR COMPANY YOU PAID $600 OR MORE TO DURING THE YEAR. ONE COPY MUST BE SENT TO THE IRS WITH A FORM 1096. A PENALTY OF $50.00 WILL BE ASSESSED BY THE IRS FOR FAILURE TO FILE OR FAILURE TO FURNISH A CORRECT TAXPAYER'S ID NUMBER. YOU WILL ALSO BE SUBJECT TO IMPOSING BACKUP WITHHOLDING ON THOSE COMPANIES OR INDIVIDUALS YOU USE WHO HAVE BEEN IDENTIFIED BY THE IRS AS HAVING INCORRECT OR SUSPECT ID NUMBERS. IF YOU WOULD LIKE OUR OFFICE TO PREPARE YOUR 1099'S, PLEASE PROVIDE US WITH NAME, SOCIAL SECURITY NUMBER, ADDRESS AND THE AMOUNT PAID FOR EACH PAYEE. FOR PEOPLE WHO ARE IN BUSINESS FOR THEMSELVES, WE STILL NEED THE INDIVIDUAL'S NAME AND SOCIAL SECURITY NUMBER, NOT THE BUSINESS NAME AND EIN. THE ONE TIME SET-UP FEE WILL BE $25.00 FOR 1099'S UNLESS YOU HAVE USED US BEFORE, AND EACH 1099 WILL COST $15.00 AND WILL BE FILED BY MAGNETIC MEDIA WITH THE IRS AND STATE OF CALIFORNIA. IF YOU WOULD LIKE US TO GATHER THE INFORMATION FROM YOUR ACCOUNTING RECORDS, THERE WILL BE AN ADDITIONAL HOURLY ACCOUNTING FEE CHARGED. THESE FORMS MUST BE FILLED BY 2/28/2008; YOUR INFORMATION MUST BE IN OUR OFFICE BY 2/20/2008 FOR TIMELY FILING. LAST YEAR WE PROCESSED 950 1099's.

FORM DE 542: ANY BUSINESS OR GOVERNMENT ENTITY (DEFINED AS A "SERVICE-RECIPIENT") THAT IS REQUIRED TO FILE A FORM 1099-MISC FOR SERVICE PERFORMED BY AN INDEPENDENT CONTRACTOR (DEFINED AS A "SERVICE-PROVIDER). YOU MUST REPORT TO THE EMPLOYMENT DEPARTMENT WITHIN TWENTY (20) DAYS OF EITHER MAKING PAYMENTS OF $600 OR MORE OR ENTERING INTO A CONTRACT FOR $600 OR MORE WITH AN INDEPENDENT CONTRACTOR IN ANY CALENDAR YEAR, WHICHEVER IS EARLIER. THIS INFORMATION IS USED TO ASSIST STATE AND COUNTY AGENCIES IN LOCATING PARENTS WHO ARE DELINQUENT IN THEIR CHILD SUPPORT OBLIGATIONS. THIS IS AN ANNUAL REQUIREMENT SO EVEN IF YOU REPORTED THE INDEPENDENT CONTRACTOR IN 2006 YOU MUST REPORT AGAIN IN 2007.

SERVICE-RECIPIENT (BUSINESS OR GOVERNMENT ENTITY):
· FEDERAL EMPLOYER IDENTIFICATION NUMBER
· CALIFORNIA EMPLOYER ACCOUNT NUMBER
· SOCIAL SECURITY NUMBER
· SERVICE-RECIPIENT NAME/BUSINESS NAME, ADDRESS, AND
TELEPHONE NUMBER

SERVICE-PROVIDER (INDEPENDENT CONTRACTOR):
· FIRST NAME, MIDDLE INITIAL, AND LAST NAME
· SOCIAL SECURITY NUMBER
· ADDRESS
· START DATE OF CONTRACT (IF NO CONTRACT, DATE PAYMENTS
EQUAL $600 OR MORE)
· AMOUNT OF CONTRACT INCLUDING CENTS (IF APPLICABLE)
· CONTRACT EXPIRATION DATE (IF APPLICABLE)
· ONGOING CONTRACT (IF APPLICABLE)

THE EDD MAY ASSESS A PENALTY EQUAL TO $24.00, UNLESS A FAILURE IS DUE TO GOOD CAUSE. IN CASES WHERE THE FAILURE TO SUPPLY THE REQUIRED REPORT OR TO SUPPLY A FALSE OR INCOMPLETE REPORT IS THE RESULT OF A CONSPIRACY BETWEEN AN EMPLOYER AND AN EMPLOYEE, THE EDD MAY ASSESS A PENALTY EQUAL TO $490.00

EMPLOYEE STATUS: THE STATE OF CALIFORNIA HAS BECOME MORE AGGRESSIVE REGARDING EMPLOYEE STATUS. THIS MEANS SOME PEOPLE YOU HAVE BEEN TREATING AS OUTSIDE CONTRACTORS WILL HAVE TO BE CONSIDERED EMPLOYEES, WITH APPROPRIATE EMPLOYMENT TAXES BEING WITHHELD FROM THEIR PAY. A PERSON IS GENERALLY CONSIDERED TO BE AN EMPLOYEE IF YOU AS THE EMPLOYER CONTROL THEIR WORK ENVIRONMENT (I.E., PROVIDE WORK TOOLS, CONTROL WHEN AND WHERE THEY WORK). TWO OTHER TESTS THAT ARE USED TO DETERMINE EMPLOYEE STATUS ARE RISK OF LOSS (IF THE PERSON BEING PAID MAKES MISTAKES RESULTING IN A FINANCIAL LOSS, WHO WOULD PAY), AND WHETHER THE PAYMENTS WERE MADE FOR PERSONAL SERVICES (A TRUE INDEPENDENT CONTRACTOR WOULD BE ABLE TO SEND SOMEONE IN HIS PLACE TO DO THE WORK). ALSO, SOME PEOPLE ARE EMPLOYEES BY DEFINITION. THESE INCLUDE STOCKHOLDERS OF A CORPORATION. IRS FORM SS-8 WILL HELP YOU DETERMINE EMPLOYEE STATUS. IF YOU ARE PAYING THESE TYPES OF PEOPLE AS SUBCONTRACTORS OR BY COMMISSION, YOU NEED TO BEGIN TREATING THEM AS EMPLOYEES.

EDD AUDITS: WE HAVE HAD AN INCREASED NUMBER OF PAYROLL AUDITS IN THE PAST YEAR. PLEASE MAKE SURE YOU ARE COMPLING WITH THE STATE OF CALIFORNIA RULES REGARDING EMPLOYEES.

POSTING NOTICES: ALL CALIFORNIA EMPLOYERS MUST POST THE FOLLOWING NOTICES. THE LAW REQUIRES ALL EMPLOYERS TO POST THEM IN A PROMINENT LOCATION, EASILY SEEN BY EMPLOYEES.

· EMERGENCY NUMBERS - CAL/OSHA REQUIRES THAT EMERGENCY NUMBERS BE POSTED
· WORKERS' COMPENSATION - A NOTICE MUST BE POSTED EXPLAINING WORKERS' COMPENSATION, WHAT IS COVERED AND NOT COVERED AND HOW TO REACH THE EMPLOYER'S CARRIER
· U.S. DEPARTMENT OF LABOR EMPLOYMENT STANDARDS ADMINISTRATION AND CALIFORNIA INDUSTRIAL WELFARE COMMISSION - EMPLOYERS MUST POST CURRENT MINIMUM WAGE STANDARDS.
· CALIFORNIA LABOR CODE PAYDAY NOTICE - EMPLOYERS MUST POST A NOTICE EXPLAINING THE COMPANY PAYDAYS
· U.S. DEPARTMENT OF LABOR EMPLOYEE POLYGRAPH PROTECTION ACT - THIS POSTER EXPLAINS EMPLOYEE RIGHTS CONCERNING POLYGRAPH TESTS AS A CONDITION OF EMPLOYMENT OR AFTER EMPLOYMENT.
· EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (EEOC) - EMPLOYERS MUST POST EEOC-P/E-1, AN EXPLANATION OF EEOC RULES FOR HIRING EMPLOYEES
· CALIFORNIA DEPARTMENT OF FAIR EMPLOYMENT AND HOUSING (DFEH 162) - THIS POSTER DELINEATES CALIFORNIA LAW REGARDING DISCRIMINATION OR HARASSMENT IN EMPLOYMENT SITUATIONS
· NOTICE TO EMPLOYEE (DE-35) - INFORMS EMPLOYEES THAT THEIR EMPLOYERS ARE REQUIRED TO SEND COPIES OF WITHHOLDING ALLOWANCE CERTIFICATION FORM (W-4) TO THE IRS IF THE CERTIFICATE MEETS CERTAIN CONDITIONS.
· CAL/OSHA - PROVIDES AN EXPLANATION OF EMPLOYEE RIGHTS FOR SAFETY AND HEALTH IN THE WORK ENVIRONMENT
· NOTICE TO EMPLOYEES (DE 1857A) - INFORMS EMPLOYEES OF THEIR UNEMPLOYMENT INSURANCE (UI) AND DISABILITY INSURANCE (DI) RIGHTS
· TIME OFF FOR VOTING NOTICE - MUST BE POSTED AT LEAST TEN DAYS BEFORE EVERY STATEWIDE ELECTION

NEW HIRE REPORTING: ALL EMPLOYERS MUST REPORT NEWLY HIRED EMPLOYEES. BEGINNING JULY 1, 1998, ALL EMPLOYERS MUST REPORT THE HIRING OF ALL NEW WORKERS WITHIN 20 DAYS OF HIRE TO THE EMPLOYMENT DEVELOPMENT DEPARTMENT (EDD) (AB 67 CH. 97-606).
EMPLOYERS MUST REPORT THE EMPLOYEE'S NAME, ADDRESS AND SOCIAL SECURITY NUMBER; THE EMPLOYER'S NAME, ADDRESS, FEDERAL AND STATE IDENTIFICATION NUMBER; AND THE FIRST DATE THE EMPLOYEE WORKED. EMPLOYERS MAY USE DE-34, 'REPORT OF NEW EMPLOYEE(S)', OR SEND A COPY OF THE EMPLOYEE'S FORM W-4, 'EMPLOYEE WITHHOLDING ALLOWANCE CERTIFICATE', TO THE EDD. EMPLOYERS MUST TRANSMIT THE REPORT BY FIRST CLASS MAIL, MAGNETICALLY OR ELECTRONICALLY TO THE EDD. EMPLOYERS WHO FILE MAGNETICALLY MUST FILE REPORTS BY TWO MONTHLY TRANSMISSIONS NOT LESS THAN 12 DAYS AND NO MORE THAN 16 DAYS APART. MULTI-STATE EMPLOYERS WHO FILE MAGNETICALLY MAY SELECT ONE STATE IN WHICH THEY HAVE EMPLOYEES TO REPORT ALL NEW HIRES. THE EDD MAY ASSESS A PENALTY EQUAL TO $24.00, UNLESS A FAILURE IS DUE TO GOOD CAUSE. IN CASES WHERE THE FAILURE TO SUPPLY THE REQUIRED REPORT OR TO SUPPLY A FALSE OR INCOMPLETE REPORT IS THE RESULT OF A CONSPIRACY BETWEEN AN EMPLOYER AND AN EMPLOYEE, THE EDD MAY ASSESS A PENALTY EQUAL TO $490.00

571-L: IF YOU HAVE ANY PERSONAL PROPERTY (COMPUTER, OFFICE FURNITURE AND EQUIPMENT, ETC.) IN YOUR BUSINESS, YOU ARE REQUIRED BY THE COUNTY WHERE YOUR BUSINESS IS LOCATED TO FILE A FORM 571-L BY APRIL 1ST OF EACH YEAR.

CITY BUSINESS TAX: EVERY BUSINESS ENTITY THAT OPERATES WITHIN CERTAIN CITY LIMITS ARE REQUIRED TO FILE CITY BUSINESS TAX BASED ON GROSS RECEIPTS FOR THE PRIOR CALENDAR YEAR. YOU MAY BE REQUIRED TO FILE IN SEVERAL CITIES THAT YOU MIGHT OPERATE IN.