Key Takeaways Bonuses = Supplemental Income —In California, bonuses are classified as supplemental wages and subject to special withholding rules rather than treated as ordinary wages. Flat State Rate Applies —A flat withholding rate of 10.23% applies to all bonuses in California, regardless of the employee’s regular income bracket. Two Federal Withholding Methods —Employers may […]
Read More + *The following article was updated in March 2024* If you’re a business owner in the state of California, there are several taxes and regulations that need your attention. It’s critical that you pay attention to the rules and comply with the taxing agencies, or you may end up owing the state money down the road. […]
Read More + Most people don’t want to pay California taxes. They end up contacting me because they are going to move to Florida, Texas or Nevada. I warn them to make sure they actually decided to relocate, move their family, move their house, move their driver’s license, move their car registration. If they’re actually moving and intend […]
Read More + *The following article was updated in November 2023* Lottery winnings are taxable as income at federal and state levels. The IRS applies a 24% federal tax, while California state income tax rates from 1% to 13.3% increase total taxes owed. However, the total tax liability could be higher, potentially reaching up to 37%, which is […]
Read More + I’ve received a lot of phone calls over the years from people wanting to leave California. They don’t want to deal with the taxes or the regulations. These individuals who reach out to me want to know about residency audits and whether they will face one when they leave the Golden State. Here is what […]
Read More + President Trump’s new tax changes were talked about significantly after it was signed and went into effect July 4, 2025. As the year comes to a close, the “One Big Beautiful Bill” is making headlines again as taxpayers start thinking about the 2026 tax season. There has been a lot of discussion about the changes […]
Read More + It’s not quite the end of 2025 and tax season may seem like quite a way off. However, as a taxpayer and business owner, there are things you can do now to prepare to file taxes in 2026. Taking an hour or two when your San Francisco business has some year-end down time may help […]
Read More + People often ask me what they should do when they want to talk with a government taxing agent, but they do not have the money or resources to hire an attorney. This is a very common question among San Francisco tax payers and business owners. It’s perfectly fine to reach out to a representative from […]
Read More + California is one of the most sought-after places to live. However, the Golden State’s highest individual income tax rate is 13.3%. I receive a lot of phone calls from individuals who are about to sell their business or a large asset and they don’t want to pay California income tax on that sale. Unfortunately, if […]
Read More + Most business owners are familiar with the IRS and also the California Employment Development Department (EDD). But there’s an equally important department that every business owner needs to be aware of — the California Department of Tax and Fee Administration (CDTFA). I am often asked by California tax payers and San Francisco business owners what […]
Read More + 