As a business owner, it’s your responsibility to remain in compliance with all state laws. But if you’re not a lawyer yourself, is that realistic, or even possible?
California is a state notorious for its uniquely complicated labor laws, and its payroll tax laws are no different. If you’re doing business in this city, you really need a San Diego tax attorney to ensure that you are dotting every I and crossing every T when it comes to payroll.
If you’re not sure what a San Diego tax lawyer could do for you, keep reading. We’ll walk you through the role of a tax lawyer and discuss how to find the best San Diego business tax attorney for your business.
What Are California Payroll Taxes?
California has several different types of taxes levied on the employer for each employee they hire. They are unemployment insurance (UI) tax, employment training tax (ETT), state disability insurance (SDI) tax, and California personal income (PIT) tax.
Seems like it should be simple, right? Can’t you just take the tax out of everyone’s paycheck at equal percentages?
The answer is no. Different types of employment are subject to different payroll taxes. Employees in some industries, such as agriculture, are not subject to certain categories of payroll taxes. If you as an employer took the tax out of their paycheck, you’d be breaking the law.
Furthermore, some positions are subject to all payroll taxes, but only up to a certain amount in certain categories. You can see how this can be confusing.
What Does a Tax Lawyer Do?
In a regular business with several different kinds of employees, it’s possible that each category or even each person within the same category will have a different payroll tax obligation under California law.
The right San Diego tax attorney will be able to correctly classify your employees according to California’s laws. Instead of spending your own time and energy classifying each and every person, you’re free to run your business and let your tax lawyer ensure compliance with the law.
A San Diego tax lawyer will also ensure you are compliant with California’s strict schedule of withholding tax payments from employees. This schedule depends on the average amount of PIT that the business withholds from employees over a period of time.
California’s state government also requires certain reporting on your payroll taxes. Your tax attorney can prepare and file these documents with the state.
Don’t Hesitate to Consult a San Diego Tax Attorney
If you own a business in San Diego, you can’t afford to go without a payroll tax lawyer. California’s many stringent regulations are too thorny for even the savviest of business owners to navigate. Trying to handle it yourself may end up in punitive fines, or worse.
Don’t hesitate to reach out to a San Diego tax attorney. You’ll be doing yourself, your business, and your employees a favor. And you’ll never have to worry about remaining in compliance with tax laws again.