HOW CORPORATIONS ARE TAXED
How Corporations Are Taxed It pays to learn the ups and downs of corporate taxation before you start your business. Corporations are taxed differently than other business structures: A corporation is the only type of business that must pay its own income taxes on profits. In contrast, partnerships, sole proprietorships, and limited liability companies (LLCs) are not taxed on business profits; instead, the profits “pass through” the business to their owners, who report business income or losses on their personal tax returns. Understanding Corporate Taxation Because a corporation is a... Read The Rest →
UPDATE ON CALIFORNIA COMMISSION AGREEMENTS (2013)
Reminder: written and signed commission agreements are required by January 1, 2013 It is time to think about that to-do list for year end. One item on that list for all California employers should be to make sure you have updated, accurate, and signed commission agreements on file. Last year AB 1396 was passed, requiring that any employer who pays commissions to employees must have a written contract setting forth “the method by which the commissions shall be computed and paid.” The employer must give a copy of the... Read The Rest →
CALIFORNIA WAGE THEFT PREVENTION ACT (2012)
A recently-passed piece of California legislation that will impact employers is the Wage Theft Prevention Act of 2011 (WTPA), which takes effect January 1, 2012. This law adds a new section to the California Labor Code (Labor Code Section 2810.5). The WTPA requires that employers provide written notice to employees at the time of hiring regarding: 1) rates of pay and the basis for compensation, including whether the rates involve payment per hour, per shift, per day, per week, or by salary, piece, commission, “or otherwise”; 2) any credits or... Read The Rest →