E-Alert
August 5 , 2009
California's Balanced Budget - Finally
The 2009-2010 budget revision was completed with no new taxes but with numerous revenue enhancers through accelerating tax collections.
As of November 1, 2009, witholding on wages increases by 10%, withholding on supplemental wages increases to 6.6% and withholding on stock options and bonus payments is increases to 10.23%.
Additionally, corporate and individual estimated tax payments due in 2010 will be 30% for the first quarter, 40% for the second quarter, 0% for the third quarter and 30% for the fourth quarter.
Backup witholding on certain payments of 7% will begin on January 1, 2010. Some businesses will need to register with the Board of Equalization by April 15 and pay use tax on purchases made in the prior year.
Although heavily debated, withholding on independent contractors was not included in the budget revision.
If you have any questions regarding the information in this article, or have any other issues you would like to discuss, please feel free to contact the DZH Phillips tax department at 415.781.2500 or email cpas@dzhphillips.com.
####
More e-Alerts, updates & articles »
DZH Phillips LLP is one of the leading public accounting and strategic consulting firms in the San Francisco Bay Area. We provide the long-term relationships, industry expertise, and consistently high-quality service our clients need to make the right decisions today and in the future.
To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained herein (including any enclosures or attachments) was not intended or written to be used, and cannot be used, by the taxpayer for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local law provisions.
For the Media:
DZH Phillips has experts on staff to provide information on a variety of subjects related to tax planning, accounting, and estate planning. We can provide:
• Expert opinions
• Articles
• Tips and advice
Please contact:
Diana DeLonzor
Marketing & Business Development Manager
ddelonzor@dzhphillips.com
Main: (415) 781-2500