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Pay to Play in CA: Are Californians Entitled to Paid Holidays?

In Business on May 31, 2011 by Sufen Wang Tagged: , , , , , , ,

closed for holiday

Holidays are a great time to get together with family and friends. They can be joyful celebrations of happy times or remembrances of momentous occasions in our nation’s history. People often get time off from work to be able to properly observe national holidays.

But this isn’t necessarily the case for Californians. Did you know that California law does not require an employer to provide employees with paid holiday time off?

In fact, according to this article, the California Department of Industrial Relations states that “hours worked on holidays, Saturdays, and Sundays are treated like hours worked on any other day of the week.” Furthermore, California legislation specifically states that no business is required to “close its business on any holiday, or that employees be given the day off for any particular holiday.”

This not only means that employers can require employees to work on national holidays, but also that they don’t owe employees additional compensation for working during these holidays. However, companies are still mandated by law to pay overtime at a minimum of time-and-a-half to employees for working more than forty hours per week, and that includes time worked during holidays.

Conversely, employers can also shut down business on any holiday without compensating employees for the loss of a day’s work. With so many Californians struggling financially, this can be a significant loss to some employees.

But there are still things to be thankful for. If you work for a California company that does offered you paid holidays off, this means that it’s the employer’s policy, and is not mandated by law. The same goes for holiday pay (usually time-and-a-half). If you work for a company that has a paid holiday time policy, be sure to thank your CEO the next time you see him.

On the Money,

Sufen Wang
Wang Solutions

Articles

Checks and Balances: Keep ’em Honest

In Business on May 24, 2011 by Sufen Wang Tagged: , , , ,

money on the street

Everyone’s asked and been asked this age-old question: If you found money in the street, what would you do? Would you keep it? Try to find the owner? Give it away to somebody else? Burn it as a statement against “The Man?”

This question is supposed to show how honest you are (or aren’t). But even those who are adamant against keeping money found on the street may find themselves tempted when it comes to money found unguarded in the workplace. That’s why, as an employer, it’s a good idea to implement different checks and balances.

By segregating financial responsibilities, you can prevent theft and embezzlement in the workplace. If there’s only one person in charge of all of your accounting tasks, such as making bank deposits, receiving funds, issuing checks, and reconciling checkbooks, it can be easy and very tempting for that person to skim a little off the top for themselves. By assigning different people to different tasks, you ensure that they can keep one another accountable and honest.

krusty the klown

There's a better solution than this.

If you don’t have enough accounting resources to be able to segregate responsibilities, then you should, at the very least, check the books regularly and make sure that your accounting person knows that you’re doing it. Here are a few ways for you to keep an eye on your finances:

  • Maintain a small petty cash fund for the office and reconcile it every week.
  • Review your credit card and bank statements regularly.
  • Take advantages of online services to keep tabs on your business finances.
  • Implementing checks and balances in your business will not only protect your business from theft and embezzlement, but it will also protect your employees from the temptation to act against their better judgment. In the end, they’ll thank you for it.

    On the Money,
    Sufen Wang
    Wang Solutions

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    Goodbye, Snail Mail: The IRS Goes Electronic

    In Taxes on May 17, 2011 by Sufen Wang Tagged: , , ,

    snail mail

    It looks like the IRS is finally catching up to the digital age.

    People have been baffled for years at the IRS’ insistence on sending correspondence via snail mail, despite the fact that lost mail and extended delivery times can lead to delays in resolving taxpayer issues. But the IRS insists that security is paramount, and that e-mail simply isn’t secure enough to guarantee a taxpayer’s privacy.

    But the IRS has been working on an encryption program to allow taxpayers and practitioners (i.e. accountants) to communicate securely with the IRS. They expect to start testing it in early 2012, although it’s still unclear which department or office will start using it.

    Could it be that the days of fat, scary envelopes from the IRS are over? Stay tuned to find out.

    On the Money,

    Sufen Wang
    Wang Solutions

    REMEMBER: the IRS does not yet communicate by e-mail or any other electronic format. If you get any e-mail from a domain name of irs.gov, DO NOT open it. It is not from the IRS or any of its agents/offices.

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    Going Rogue:

    In Accounting & Finances, Business, Taxes on May 11, 2011 by Sufen Wang Tagged: , , , , , ,

    The Risks and Responsibilities of Hiring Independent Contractors

     

    America: it’s the land of the free and the home of the brave. We Americans pride ourselves on our independence, and, now, with the economy still slowly making its way towards recovery, more businesses are hiring independent contractors than ever, and more people are working as independent contractors than ever.

    I recently came across this article by Ronda Jones of Forrest T. Jones & Company. It’s all about what you need to know before you hire an independent contractor or accept work as an independent contractor. It’s a helpful article, and if you’re thinking about hiring an independent contractor, you should definitely give it a read. But here are some tidbits to whet your appetite.

    If you’re thinking about hiring an independent contractor:

      • Consult an attorney and draw up a basic work contract. Make sure that it includes a “hold harmless” clause, a non-competition clause, and insurance clauses, and make sure that it addresses jurisdictional issues in your city and state.
      • Make sure that the independent contractor has adequate insurance to cover their work.
      • Consult your insurance agent to see how hiring an independent contractor will affect your coverage.
      • Request and retain invoices from your contractor.
      • You may also want to run a background check or even run an internet search to make sure that there aren’t any unpleasant surprises in store for you.
      • Make sure that you know how to issue Form 1099-MISC at the end of each tax year for your contractor.

    If you are working as an independent contractor:

    • Review the company’s independent work contract. You may want to have your attorney go over it to make sure that it’s okay to sign. Make sure that you are only held accountable for liabilities resulting from gross negligence or willful misconduct. You may also want to insert a liability limitation cap so that you aren’t still held liable for errors or omissions that are discovered years down the line.
    • Ask the employer for copies of their certificates of insurance so that you can make sure that they have general liability and auto liability insurance, if applicable. You should also ask to be listed under their professional liability or errors & omissions insurance, if applicable.
    • Keep a log of the projects you’ve worked on, just in case your involvement is ever called into question.

    Ask the contractor periodically to meet and review the terms of the contract to make sure that it adequately covers the work that you’re actually being required to do.Working with an independent contractor is a great way to save money for services you need, compared to hiring someone full-time that you don’t really need full-time. Working as an independent contractor is a great way to get work during times when work is difficult to find.

    And if you go about it the right way, then neither party will have to hire Chuck Norris to take out the other.

    • On the Money,
      Sufen Wang
      Wang Solutions

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    Tax Document Hoarders: How Long Should I Keep My Tax Records?

    In Taxes on May 3, 2011 by Sufen Wang Tagged: , , ,

    documents

    We’re now two weeks removed from Tax Day 2011, and, yet, there are still questions regarding our taxes lingering in our minds. Last week, we shared with you when you should expect your tax refund, and, today, we’re going to talk about another hot tax topic: document storage.

    People are often conflicted when it comes to deciding whether to keep or throw away a tax-related document. On the one hand, they don’t want to throw away any important documents. On the other hand, they don’t want to wake up one day, trapped under a pile of tax documents that they didn’t really need.

    In the battle between good recordkeeping and good housekeeping, it’s important to know which documents you really need to keep, and which ones you can actually afford to toss. But it’s discerning the difference that’s the hard part. Fortunately, the IRS has put together a little article to help you decide what you should keep and what you should toss.

    Here are some of the highlights:

  • If you did not report income and it’s more than 25% of your filed gross income, keep records for 6 years.
  • If you filed a fraudulent return, keep records indefinitely.
  • If you did not file a return, keep records indefinitely.
  • If none of the first three apply to you (and let’s hope that they don’t!) and you owe additional tax, keep records for 3 years.
  • If you file a claim for a credit or refund after you file your return, keep records for 3 years from the date you filed your original return or 2 years from the date you filed the tax, whichever is later.
  • If you file a claim for a loss from worthless securities or a bad debt deduction, keep records for 7 years.
  • Keep all employment tax records for 4 years from the date that the tax was either due or paid, whichever is later.
  • Keep all documents related to assets (like property) until the period of limitations expires for the year in which you disposed of the property in a taxable disposition.
  • Keep non-tax-related documents until you’re sure that you don’t need them for other purposes. An insurance company might require you to keep a document for longer than the IRS might.
  • Always keep copies of your filed tax returns. They might come in handy if you ever need to file an amended return.
  • As a rule of thumb, if you’re not confident that you can throw it out, you probably shouldn’t. It’s better safe than sorry. Just be sure to invest in some neat and tidy storage organizers so that you don’t wind up trapped under a pile of your tax documents. Many people complain that their taxes are killing them, but it shouldn’t happen in this way.

    On the Money,
    Sufen Wang
    Wang Solutions

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    Show Me the Money: When Will I Get My Tax Refund?

    In Taxes on April 26, 2011 by Sufen Wang Tagged: , , , ,

    Money

    Another Tax Day has come and gone, and you’ve survived. Whether you filed your taxes the second you got all of the necessary documents or at 11:59pm on April 18th, you’re probably all asking the same question:

    “Where’s my tax refund?”

    Well, if you filed your taxes online this year, the IRS has a handy-dandy refund chart that can show you when your refund will be processed.

    refund cycle chart 2011

    For example, if you e-filed your taxes and they were accepted by the IRS on March 15th (I’m going to assume that you were all good boys and girls and filed early this year), then you should either have gotten a direct deposit on March 25th or a check was processed and mailed out to you on April 1st (no joke).

    If you check the chart and your refund should have gotten to you by now, you can head over to the IRS website to check your refund status. Be sure to have your 2011 tax return handy so that you can enter the necessary information to get your refund status. You can also call the IRS Refund Hotline at 1-800-829-1954, or the IRS TeleTax system at 1-800-829-4477.

    Once you find out the status of your refund, you can proceed from there.

    Just don’t spend it all in one place, now.

    On the Money,
    Sufen Wang
    Wang Solutions

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    The IRS’ Dirty Dozen: The Top 12 Tax Scams of 2011

    In Taxes on April 19, 2011 by Sufen Wang Tagged: , , , ,

    Ja Rule

    Rapper Ja Rule was convicted of tax evasion in March 2011.

    We’ve all heard stories about rich and famous people running afoul of the law — not because of drug use or anything particularly glamorous, but for simple tax evasion. It might seem silly to the rest of the world, but some of these celebrities make a lot of money, and that means that the taxes they pay are significantly higher.

    But celebs aren’t the only people tempted by tax scams. Middle class Americans can get sucked into these scams, too.

    The IRS (Internal Revenue Service) has compiled a list of 2011’s top tax scams. If any of these “Dirty Dozen” sound familiar to you, be sure to avoid them and the people who suggested them to you!

    • Hiding income offshore
    • Identity theft and phishing
    • Tax return preparer fraud
    • Filing false or misleading forms
    • Frivolous legal positions or arguments
    • Nontaxable Social Security benefits with exaggerated withholding credit
    • Abuse of charitable organizations and deductions
    • Abusive retirement plans
    • Disguised corporate ownership
    • Filing phony wage- or income-related returns to reduce wages to zero
    • Misuse of trusts
    • Fuel tax credit scams

    If you’re engaged in any of these, you should know that the IRS is probably onto you, and that you’ll likely be getting audited sometime in the near future.

    But if you’ve never heard of any of them and would like to avoid them in 2012, you can get full descriptions of each of these scams from the IRS.

    On the Money,
    Sufen Wang
    Wang Solutions

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    Hello world!

    In Uncategorized on April 15, 2011 by Sufen Wang

    Welcome to WordPress.com. After you read this, you should delete and write your own post, with a new title above. Or hit Add New on the left (of the admin dashboard) to start a fresh post.

    Here are some suggestions for your first post.

    1. You can find new ideas for what to blog about by reading the Daily Post.
    2. Add PressThis to your browser. It creates a new blog post for you about any interesting  page you read on the web.
    3. Make some changes to this page, and then hit preview on the right. You can alway preview any post or edit you before you share it to the world.