So Many Changes in 2017! What Do You Need to Do to Prepare? – 5 Star Accounting and Business
5 Star Accounting and BusinessAccounting So Many Changes in 2017! What Do You Need to Do to Prepare?

So Many Changes in 2017! What Do You Need to Do to Prepare?

It’s Goiareyoureadyng Down for Real – Sales/Use Tax That Is!

That’s right. You heard it here! Sales and Use tax is going DOWN! What?

The statewide sales and use tax rate in California is decreasing effective 1/1/17 by 0.25% (down from 7.50% to 7.25%). Be prepared and adjust the sales/use tax rates in your accounting, POS or E-commerce systems before invoicing customers on January 1st!

Marijuana Legal in California – The Impact to Employers

As an employer in California, you may have questions about the recently passed Proposition 64 legalizing the adult use of marijuana in California. Good news employers! Proposition 64 does not revoke your rights as an employer to maintain a drug and alcohol free workplace.

Employers are protected under certain a specific provision and may continue pre-employment drug testing as a condition of employment, refusal to hire applicants with positive drug results, reasonable suspicion testing or may take disciplinary actions or terminate for use.

Don’t Forget! New, Minimum Salary Provisions

The Final Rule takes effect December 1, 2016.

  • Be prepared to raise exempt, salaried employees to the standard, minimum level of $47,476 annually if they aren’t already.
  • The new, minimum annual compensation for highly compensated employees will be $134,004
  • Be prepared to see automatic updates to salary levels every three years from thereon.

You will be allowed to use non-discretionary bonuses and incentive payments (i.e. commissions) to satisfy up to 10 percent of the new standard.

Whew! That’s a lot but you will get through, just be prepared! Call us today at (916) 905-7444 if you need guidance or assistance with the upcoming changes!
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