The Washington State Legislature passed Senate Bill 5096 at the conclusion of the 2021 legislative session, enacting a state capital gains tax, which Governor Jay Inslee signed into law May 4, 2021. The tax is a 7% tax, applicable to net long-term gains on capital assets (stocks, bonds, business interests, and other…
Topic: Tax
New Mandatory Payroll Tax Related to Long Term Care
There is a new mandatory payroll tax that will affect nearly all employees in the state of Washington. This long-term care (LTC) tax has not yet raised a lot of attention but is fast approaching. The Employment Security Department (ESD) created the WA Cares Fund that is administering this new payroll tax.
Biden Tax Plan – What You Need to Know
Now that the 2020 general election is over, it is time to consider what federal tax changes President-elect Biden would like to see for 2021 and beyond. Even with the Democrats in control of the Senate, the odds of dramatic tax reform may still be low. Some Democratic Senators, who will be up for re-election in 2022, may be reluctant to support a…
The New Form 1099-NEC: What You Need to Know
Changes are in store this tax season for the more than 70 percent of filers in 2019 who reported information in Box 7 of Form 1099 MISC. Beginning for the tax year 2020 there is a new Form 1099 NEC to report nonemployee compensation. In the past, payments of at least $600 to…
Oregon Corporate Activity Tax – DOR Issuing Notices
The Oregon Department of Revenue (DOR) has recently begun issuing notices regarding the Oregon Corporate Activity Tax (CAT) to taxpayers with business activity within the state. The CAT is effective for tax years beginning on or after January 1, 2020, making 2020 the initial year of implementation.
Seattle Payroll Tax Effective January 1, 2021
On July 6, 2020, the Seattle City Council passed Council Bill (CB) 119810 implementing a variable-rate payroll tax or ‘payroll expense tax’ that applies to businesses with $7 million or more of payroll expense in the most recent calendar year. The tax is intended to assist with the affordable housing crisis, homelessness, and now the COVID-19 pandemic…
Deferred social security tax – Pay now or Pay Later? Who is liable?
In August, a Presidential Memorandum was issued allowing the deferral of the employee’s portion of Social Security tax withholding, which is 6.2% of wages. This is a deferral, not forgiveness…..
IRS Extends Tax Deadline for Nonprofits
Recently the IRS issued Notice 2020-23, giving not-for-profit organizations relief on tax returns and tax payments originally due between April 1, 2020 and July 15, 2020.
Notice 2020-23 provides relief for filers of Form 990, Form 990-EZ, Form 990-N, Form 990-T and Form 990-PF. The returns, along with any tax payments, are now automatically due July 15, 2020. Learn more.
Washington Legislature Has Done It Again—Workforce Education B&O Surcharges Undergo Overhaul
On Feb. 11, less than 45 days after the Workforce Education Investment Act surcharges began Governor Jay Inslee signed S.B. 6492. This bill nixed the three-tier formula and completely overhauled the tax increase implementation.
Have a Side Gig? What You Need to Know About Paying Taxes.
An increasing number of people are taking advantage of opportunities to earn extra income with side jobs or “gigs”. Do you have a Side Gig? If so, this blog post details what you should know about paying taxes in the expanding gig economy.