CA Passes Salary History Ban

CA Passes Salary History Ban

AB 168 passed into law on October 12, 2017, amending the California Fair Pay Law by prohibiting all California employers from inquiring into an applicant’s salary history starting January 1, 2018. Specifically, under the new law, all California employers are required to follow these rules during the hiring process: Employers cannot use (rely on) the salary history information of an applicant when determining whether to offer employment to an applicant or Employers cannot use (rely on) the salary history information of an applicant when determining what salary to offer an applicant. Employers cannot seek salary history information, including compensation and benefits, about an applicant. Upon reasonable request, employers must provide the pay scale for a position to an applicant applying for employment. It is important to note that the law does not prohibit an applicant from voluntarily disclosing salary history information to a prospective employer. If an applicant voluntarily and, without prompting, discloses salary history information to a prospective employer, the law does not prohibit that employer from considering the voluntarily disclosed salary history information. Next step for employers California employers should review this new law and provide training to those people involved in the hiring process about the new requirements, as these new requirements impact the interview process.  In addition, all California employers should review their job applications and verify that any inquiries regarding prior salary history or wage rates are removed from the application before January 1st. This information was written by Laurian Rutterbush and shared on https://blog.eplaceinc.com....
The Five Factors of Improving Your Business Credit Score

The Five Factors of Improving Your Business Credit Score

The Five Factors of Improving Your Business Credit Score Are you looking to improve your business credit score? A good business credit score is critical in being approved for trade credit and company financing. Similar to personal credit scores, a business credit score serves as a financial report card in determining credit worthiness. A statistic-driven algorithm derived to assess risk calculates a business’s scores based on several factors. There are five common factors used to calculate a business credit score, although you should keep in mind each credit-reporting agency has its own scoring model. The Five Factors Are: 1. Making Prompt Payments One of the most important factors is paying bills on time. For the best credit score possible, be sure to pay invoices before the due date. The sooner payments are submitted, the better the impact it will be on your business credit score. 2. Creating Positive Trade References Positive payment experiences with suppliers, vendors, or business partners can have an important impact on your business credit ratings and scores. Not all vendors and suppliers share data of payments with business credit-reporting agencies, but you can add trade references to your company’s Dun & Bradstreet (D&B) credit file. If you didn’t know this before, it takes a minimum of three trade references to generate a Paydex® Score with Dun & Bradstreet. 3. Maintaining a Low Credit Utilization Ratio A company’s credit utilization ratio is the percentage of the company’s available credit used. It is calculated by dividing a company’s total outstanding balance on all credit cards by the sum of each card’s limit. This ratio plays a very...
Deductibility Guidelines for Charitable Donations

Deductibility Guidelines for Charitable Donations

Do you enjoy making donations to charities and having the benefit of a tax write-off for your contribution? It’s important to understand the tax provisions that apply to these donations, especially contributions of clothing, household items, and monetary giving. Rules for Clothing and Household Items Clothing and household items must generally be in good condition including furniture, furnishings, electronics, appliances, and linens. Guidelines for Monetary Donations A taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. Bank records include canceled checks, bank, and credit card statements which should show the name of the charity, the date, and the amount paid. Donations of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. For payroll deductions, the taxpayer should retain a pay stub, a Form W-2 wage statement or other document furnished by the employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity. These requirements for the deduction of monetary donations do not change the long-standing requirement that a taxpayer obtain an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more. However, one statement containing all of the required information may meet both requirements. Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of this year count for that year even if the credit card bill isn’t paid until later. If checks are postmarked by December 31, they still qualify...
CA Minimum Wage Increase January 1, 2018

CA Minimum Wage Increase January 1, 2018

January 1, 2018, will bring about another minimum wage increase in California. This change is due to Law SB3 which increases the California minimum wage to $15.00 per hour for large employers by the year 2022. Firms with 25 or fewer employees must meet this minimum pay rate by 2023. Once this rate of $15.00 per hour is reached, rates will then increase up to 3.5 percent (rounded to the nearest 10 cents) in relation to inflation. Below is the chart that shows the minimum wage schedule through 2023. If you have employees exempt from overtime, you’ll have to make sure their wages are adjusted, if necessary, due to this change. California labor law requires that anyone not subject to overtime must earn at least twice the minimum wage. Review your pay scale for any employees currently classified as non-exempt. This will help you keep track of whether or not an employee is to receive overtime pay. It’s also important to make sure you have posted the new labor law poster which reflects this new rate. If an employee’s rate of pay will increase on January 1, they must receive notice from the employer by January 7. However, this notice is not required if the change is reflected on a timely itemized wage statement given no later than January 7. Remember that if you are in the City of Los Angeles or unincorporated cities under county jurisdiction, there is a different pay scale which must be followed as it goes into effect at a faster rate than the state minimum wage. Effective Date Employers With 26 or more Employees Employers...
2017 Federal FUTA Credit Reduction Rates Announced

2017 Federal FUTA Credit Reduction Rates Announced

Are you an employer who must take into consideration the credit reduction when filing your FUTA tax return for 2017? A state is a credit reduction state if it has taken loans from the federal government to meet its state unemployment benefits liabilities and has not repaid the loans within the allowable time frame. If a state has outstanding loan balances on January 1 for two consecutive years and does not repay the full amount of its loans by November 10 of the second year, the FUTA credit rate for employers in that state will be reduced until the loan is repaid. This year there are only two locations that must pay higher taxes above the regular FUTA rate for 2017. These are California and the Virgin Islands. Each must pay an additional 2.1% tax for each employee’s wages up to the $7000 limit. The Virgin Islands is also subject to the Benefit Cost Rate (BCR) additional credit reduction formula for having passed five consecutive January 1’s with an outstanding federal advance. The BCR add-on is an additional 1.1%. The standard FUTA tax rate is 6.0% on the first $7,000 of subject wages, but employers may receive a credit of 5.4% when they file their Form 940 Employer’s Annual Federal Unemployment Tax Return, to result in a net FUTA tax rate of 0.6% (6.0% – 5.4% = 0.6%). The FUTA credit reduction is reported on the annual 940 tax return. Any increased FUTA tax liability due to a credit reduction is considered incurred in the fourth quarter and is due by January 31 of the following year. If you...

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