San Francisco 2013 Payroll Expense Tax Statement

Link to 2013 Payroll Expense Tax Statement eFiling

As required by our Payroll Expense Tax and Business Registration Ordinance all businesses with a taxable San Francisco payroll expense greater than $150,000 must file a Payroll Expense Tax Statement for their business annually by the last day of February for the prior calendar year (Jan. 1st – Dec. 31st). The Payroll Expense tax rate is 1.5% or .015. You calculate the Payroll Expense Tax by multiplying the business’ annual San Francisco payroll expense by 1.5% or .015, the Payroll Expense Tax rate.

Businesses must also renew their Business Registration for the next fiscal year (July 1st – June 30th) if they plan to conduct business during the new fiscal year. The 2014 – 2015 business registration renewal is due on May, 31, 2014.

A business is required to file if its San Francisco payroll expense was over $150,000 and it was operating for any portion of time in 2013.

  • Statements must be filed online and transmitted before midnight 02/28/2014
  • Payments must be received or postmarked on or before 02/28/2014
  • Penalties, interest, and fees will be imposed after 02/28/2014
  • The Power of Attorney Declaration as referenced in the Certification tab can be viewed at www.sftreasurer.org/businessforms
Please have the following data ready:
  • Amount of 2013 payroll expense (both globally and for San Francisco)
  • Number of taxable employees for each San Francisco location in 2013
  • Your seven (7) digit Business Account Number. Note that your Business Account Number is your Business Certificate Number with a leading zero
  • Last four (4) digits of your Federal Taxpayer Identification Number

2013 California Tax Table

2013 California Tax Table

Find Your Tax:

Read down the column labeled “If Your Taxable Income Is …” to find the range that includes your taxable income from Form 540, line 19.
Read across the columns labeled “The Tax For Filing Status” until you find the tax that applies for your taxable income and filing status.

2013 California Tax Rates and Exemptions

The rate of inflation in California, for the period from July 1, 2012, through June 30, 2013, was 1.7%. The 2013 personal income tax brackets are indexed by this amount.

Corporate tax rates

Entity type Tax rate
Corporations other than banks and financials 8.84%
Banks and financials 10.84%
Alternative Minimum Tax (AMT) rate 6.65%
S corporation rate 1.5%
S corporation bank and financial rate 3.5%

Individual tax rates

  • The maximum rate for individuals is 12.3%
  • The AMT rate for individuals is 7%
  • The Mental Health Services Tax Rate is 1% for taxable income in excess of $1,000,000.

Exemption credits

Filing Status/Qualification Exemption amount
Married/Registered Domestic Partner (RDP) filing jointly or qualifying widow(er) $212
Single, married/RDP filing separately, or head of household $106
Dependent $326
Blind $106
Age 65 or older $106

Phaseout of exemption credits

Higher-income taxpayers’ exemption credits are reduced as follows:

Filing status Reduce each credit by: For each: Federal AGI exceeds:
Single $6 $2,500 $172,615
Married/RDP filing separately $6 $1,250 $172,615
Head of household $6 $2,500 $258,927
Married/RDP filing jointly $12 $2,500 $345,235
Qualifying widow(er) $12 $2,500 $345,235

When applying the phaseout amount, apply the $6/$12 amount to each exemption credit, but do not reduce the credit below zero. If a personal exemption credit is less than the phaseout amount, do not apply the excess against a dependent exemption credit.

Standard deductions

The standard deduction amounts for:

Filing status Deduction amount
Single or married/RDP filing separately $3,906
Married/RDP filing jointly, head of household, or qualifying widow(er) $7,812
The minimum standard deduction for dependents $1,000

Reduction in itemized deductions

Itemized deductions must be reduced by the lesser of 6% of the excess of the taxpayer’s federal AGI over the threshold amount or 80% of the amount of itemized deductions otherwise allowed for the taxable year.

Filing status AGI threshold
Single or married/RDP filing separately $172,615
Head of household $258,927
Married/RDP filing jointly or qualifying widow(er) $345,235

Nonrefundable Renter’s credit

This nonrefundable, non-carryover credit for renters is available for:

  • Single or married/RDP filing separately with a California AGI of $36,955 or less.
    • The credit is $60.
  • Married/RDP filing jointly, head of household, or qualifying widow(er) with a California AGI of $73,910 or less.
    • The credit is $120.

Miscellaneous credits

  • Qualified senior head of household credit
    • 2% of California taxable income
    • Maximum California AGI of $67,520
    • Maximum credit of $1,272
  • Joint custody head of household credit/dependent parent credit
    • 30% of net tax
    • Maximum credit of $416

AMT exemption

Filing status Amount
Married/RDP filing jointly or qualifying widow(er) $84,640
Single or head of household $63,481
Married/RDP filing separately, estates, or trusts $42,319

AMT exemption phaseout

Filing status Amount
Married/RDP filing jointly or qualifying widow(er) $317,401
Single or head of household $238,051
Married/RDP filing separately, estates, or trusts $158,700

FTB cost recovery fees

Fee type Fee
Bank and corporation filing enforcement fee $96
Bank and corporation collection fee $287
Personal income tax filing enforcement fee $78
Personal income tax collection fee $170

The personal income tax fees apply to individuals and partnerships, as well as limited liability companies that are classified as partnerships. The bank and corporation fees apply to banks and corporations, as well as limited liability companies that are classified as corporations. Interest does not accrue on these cost recovery fees.

2013 California Tax Rate Schedules

Schedule X — Single or married/RDP filing separately

If the taxable income is
Over But not over Tax is Of amount over
$0 $7,582 $0.00 plus 1.00% $0
$7,582 $17,976 $75.82 plus 2.00% $7,582
$17,976 $28,371 $283.70 plus 4.00% $17,976
$28,371 $39,384 $699.50 plus 6.00% $28,371
$39,384 $49,774 $1,360.28 plus 8.00% $39,384
$49,774 $254,250 $2,191.48 plus 9.30% $49,774
$254,250 $305,100 $21,207.75 plus 10.30% $254,250
$305,100 $508,500 $26,445.30 plus 11.30% $305,100
$508,500 AND OVER $49,429.50 plus 12.30% $508,500

Schedule Y — Married/RDP filing jointly, or qualifying widow(er) with dependent child

If the taxable income is
Over But not over Tax is Of amount over
$0 $15,164 $0.00 plus 1.00% $0
$15,164 $35,952 $151.64 plus 2.00% $15,164
$35,952 $56,742 $567.40 plus 4.00% $35,952
$56,742 $78,768 $1,399.00 plus 6.00% $56,742
$78,768 $99,548 $2,720.56 plus 8.00% $78,768
$99,548 $508,500 $4,382.96 plus 9.30% $99,548
$508,500 $610,200 $42,415.50 plus 10.30% $508,500
$610,200 $1,017,000 $52,890.60 plus 11.30% $610,200
$1,017,000 AND OVER $98,859.00 plus 12.30% $1,017,000

Schedule Z — Head of household

If the taxable income is
Over But not over Tax is Of amount over
$0 $15,174 $0.00 plus 1.00% $0
$15,174 $35,952 $151.74 plus 2.00% $15,174
$35,952 $46,346 $567.30 plus 4.00% $35,952
$46,346 $57,359 $983.06 plus 6.00% $46,346
$57,359 $67,751 $1,643.84 plus 8.00% $57,359
$67,751 $345,780 $2,475.20 plus 9.30% $67,751
$345,780 $414,936 $28,331.90 plus 10.30% $345,780
$414,936 $691,560 $35,454.97 plus 11.30% $414,936
$691,560 AND OVER $66,713.48 plus 12.30% $691,560

Individual Filing Requirements

If your gross income or adjusted gross income is more than the amount shown in the chart below for your filing status, age, and number of dependents, then you have a filing requirement.

Filing Status Age as of December 31, 2013* California Gross Income California Adjusted Gross Income
Dependents Dependents
0 1 2 or more 0 1 2 or more
Single or head of household Under 65 $15,702 $26,569 $34,719 $12,562 $23,429 $31,579
65 or older $21,002 $29,152 $35,672 $17,862 $26,012 $32,532
Married/RDP filing jointly or separately Under 65 (both spouses/RDPs) $31,406 $42,273 $50,423 $25,125 $35,992 $44,142
65 or older (one spouse) $36,706 $44,856 $51,376 $30,425 $38,575 $45,095
65 or older
(both spouses/RDPs)
$42,006 $50,156 $56,676 $35,725 $43,875 $50,395
Qualifying widow(er) Under 65 N/A $26,569 $34,719 N/A $23,429 $31,579
65 or older N/A $29,152 $35,672 N/A $26,012 $32,532
Dependent of another person (Any filing status) Under 65 More than your standard deduction
65 or older More than your standard deduction

* If you turn 65 on January 1, 2014, you are considered to be age 65 at the end of 2013.

Source

2013 California 540 Tax Forms – Personal Income Tax

Individual Income Tax Forms

540 Form 2013 California Resident Income Tax Return (Fill-in & Save)
540 Instructions 2013 Instructions for 540 Form, California Resident Income Tax Returns
540 Tax Table 2013 Tax Table for 540 Tax Return
540-2EZ Form (Math) 2013 California Resident Income Tax Return (Fill-in & Save)
540-2EZ Form 2013 California Resident Income Tax Return (Fill-in & Save)
540-2EZ Instructions 2013 Instructions for 540-2EZ Form, California Resident Income Tax Return
540-2EZ Tax Table 2013 Tax Table for 540-2EZ Tax Return

California Sales Tax Audit Procedure

GENERAL 0416.05
Some retailers, when accounting for total sales, record only the sales price of the merchandise
in the sales account and credit sales tax reimbursement to a reserve account. This procedure
contemplates a separation of the sales price from the sales tax on either sales tickets or cash
register readings. In any event, sales tax collected is not included in reported gross sales.
Other retail establishments such as markets, taverns, and restaurants often find that separation
of the sales price from tax reimbursement is not practical, and the entire amount charged the
customer is credited to sales. In the latter cases, the taxpayer is entitled to a deduction for sales
tax included in total sales provided it can be proved to the satisfaction of the board that they have
not absorbed the tax but have actually taken it into consideration in determining the total sales
price of the merchandise.

AUDITING PROCEDURE 0416.10
In cases where a sales tax accrual account is maintained, the clerical accuracy and propriety of the
amounts posted to that account should be verified. A sales tax accrual account showing credits
only slightly in excess of taxes paid, or payments in excess of collections, does not necessarily
indicate errors in reporting.
In reconciling the accrual account, the auditor should adjust for tax on the measure of cash
discounts, bad debts claimed, refunds of tax to customers who were charged in error and for
any other instances where the taxpayer did not debit the accrual account where such a charge
was in order. In addition, the auditor should adjust for such items as reported self-consumed
merchandise and any other sales reported on which the taxpayer did not accrue tax. If any excess
debit or credit of tax still exists, after making the above adjustments, it should be the taxpayer’s
responsibility to explain such excesses.
In cases where a deduction is claimed for sales tax included in reported gross sales, the auditor
should determine:
(a) That total amounts of sales tickets are entered in the sales journal.
(b) If sales tickets are not prepared, that sales tax is rung up on the cash register if it is added
to selling prices.
(c) That where sales tax is not added to sales prices, effect was given to the tax by the retailer
in determining the total sales prices.
Regulation 1700 establishes the presumption that the selling price includes tax
reimbursement if the taxpayer posts or provides the notices contained in Regulation
1700(a)(2)(C) 1 and 2. Failure by the taxpayer to satisfy these presumptions does not
preclude acceptance of other evidence to support the tax included deduction. Claimed
“tax included” deductions should be allowed unless there is sufficient evidence to rebut
the taxpayer’s claim. The mere failure to comply with the presumptions of Regulation
1700 is in itself insufficient proof that the retailer has not included the tax in the selling
price.
This deduction is computed after the balance of the audit is completed and is based on audited
sales (purchases subject to use tax not included) minus deductions. In order to avoid the allowance
of sales tax included on disallowed deductions on which sales tax was not charged, the audited
taxable sales (tax included) should be decreased by the amounts of such disallowed sales. Sales
tax included in taxable sales may then be computed by multiplying taxable sales (tax included)
by a factor

 

Factors for other current tax rates are:
Tax RateFactor
6.50% .061033
7.00% .065421
7.125% .066511
7.25% .067599
7.375% .068685
7.50% .069767
7.625% .070848
7.75% .071926
7.85% .072786
7.875% .073001
7.925% .073431
8.00% .074074
8.25% .076212
8.50% .078341
8.75% .080460
Sales tax included should be allowed in all audits where sales have been estimated if the basic
factors in the estimate include sales tax. For example, where prices which include sales tax are
used to develop a mark-up of purchases, the sales estimated by the mark-up method will have
the tax included.

California Employee Tips

 

No employer shall collect, take, or receive any gratuity or part thereof, paid, given to, or left for
an employee by a patron, or deduct any amount from wages due an employee on account of such
gratuity, or require an employee to credit the amount, or any part thereof, of such gratuity against
and as a part of the wages due the employee from the employer. (Labor Code section 351.) If this
prohibition is violated, any amount of such gratuities received by the employer will be considered
a part of the gross receipts of the employer and subject to tax.
Optional tips are not included in gross receipts and are not subject to tax.
Mandatory tips, such as those applied by a restaurant when a party exceeds a specific number of
patrons, are considered part of gross receipts and subject to tax. Each restaurant may have its
own policy with respect to the specific number of patrons necessary before a charge for tipping is
mandatory. Ex: “A 17% gratuity will be added to parties of 8 or more.”
The auditor should discuss tipping with the taxpayer and if necessary examine the taxpayer’s
payroll records as verification of the taxpayer’s policies.

2012 California 540 & 540A Tax Forms – Personal Income Tax

Income Tax Forms

540 2EZ Form (Math) 2012 California Resident Income Tax Return (Fill-in with math features & save)
540 2EZ Form 2012 California Resident Income Tax Return
540 Form 2012 California Resident Income Tax Return (Fill-in & Save)
540A Form 2012 California Resident Income Tax Return (Fill-in & Save)
540ES Form 2012 Estimated Tax for Individuals (Fill-in)
540NR Form (Long) 2012 California Nonresident or Part-Year Resident Income Tax Return (Long) (Fill-in & Save)
540NR Form (Short) 2012 California Nonresident or Part-Year Resident Income Tax Return (Short) (Fill-in & Save)
540X Form 2012 Amended Individual Income Tax Return (Fill-in)

More forms

2012 California Tax Calulator

This calculator does not figure tax for the Form 540 2EZ.

2012 Tax Rates and Exemptions

E-file options

2012  Income Tax News

Tax Rate Increase – For taxable years beginning on or after January 1, 2012, the
maximum personal income tax rate increased to 12.3%.

Qualified Small Business Stock – The California Court of Appeals has determined
that provisions of R&TC Sections 18038.5 and 18152.5 are unconstitutional
and therefore are invalid and unenforceable. See Schedule CA (540), line 13
instructions for more information if you reported a federal qualified small
business stock (QSBS) deferral or exclusion on your federal Form 1040.

Donated Fresh Fruits or Vegetables Credit – For taxable years beginning on
or after January 1, 2012, and before January 1, 2017, qualified taxpayers who
donate fresh fruits or fresh vegetables to a California food bank may receive
a credit equal to 10% of the donation’s costs. For more information get form
FTB 3811, Donated Fresh Fruits or Vegetables Credit or go to ftb.ca.gov and
search for credit for fresh fruits.

Voluntary Contributions – You may contribute to the following new funds:
• California YMCA Youth and Government Fund
• California Youth Leadership Fund
• School Supplies for Homeless Children Fund
• State Parks Protection Fund/Parks Pass Purchase

Community Development Financial Institutions Investment Credit – The
Community Development Financial Institutions Investment Credit has been
extended for taxable years beginning on or after January 1, 2012, and before
January 1, 2017.

Net Operating Loss – For taxable years beginning on or after January 1, 2012,
California has reinstated the NOL carryover deductions.
For taxable years beginning in 2010 and 2011, California suspended the net
operating loss (NOL) carryover deduction. Taxpayers continued to compute and
carryover NOLs during the suspension period. However, taxpayers with modified
adjusted gross income of less than $300,000 or with disaster loss carryovers
were not affected by the NOL suspension rules.
Also, California modified the NOL carryback provision. For more information, see
form FTB 3805V, Net Operating Loss (NOL) Computation and NOL and Disaster
Loss Limitations — Individuals, Estates, and Trusts.

 Read more

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California State and Federal Income Tax Forms

California State Income Tax Forms

Form 540 – 2013 California Residents
Form 540 2EZ – 2013 California Resident
Form 540NR – CA part-year or nonresident
Form 540 ES – 2013 estimated tax
FTB 3567 – Installment Agreement Request

More California State  tax forms and publications

Federal Forms

 

Form W-4 – 2014 Employee’s Withholding Allowance Certificate
Form W-9 – Request for Taxpayer Identification Number and Certification
Form 1040-ES –  Estimated Tax for Individuals
Form 1040 – U.S. Individual Income Tax Return
Form 941 – 2011 Employer’s QUARTERLY Federal Tax Return

More Federal forms and publications

Check for latest forms

California Hurricane Sandy Tax Relief: Guidance for Filing an Extension Request for Holder Notice Reports

The purpose of this notice is to provide Holders and Agents of Holders impacted by Hurricane Sandy with guidance for filing an extension request for Holder Notice Reports due by
October 31, 2012. The Controller is extending the due date to November 13, 2012, if a holder is eligible.
Who is eligible for an extension?
Any holder, or agent of a holder, whose ability to convey their Holder Notice Report to the State of California by the October 31, 2012, due date is impaired by Hurricane Sandy.
What qualifies as a condition of eligibility for an extension?
Serious occurrences that severely limit the ability of the Holder or Holder’s Agent to file a Holder Notice Report by the filing due date because of loss of communications, building access, transportation, or mail and parcel delivery.
What must I do to submit my report under this extension?
You must include a completed “Holder Request for Extension of Due Date” form (http://www.sco.ca.gov/Files-UPD/form_rptg_extensionrequest.pdf) along with your Holder Notice Report.
Under Section 2, Request Information – write in “Extension due to Conditions of Hurricane Sandy.”
Under Section 2, Reason for Extension – Provide a detailed explanation for your request, referencing one of the conditions listed above.
Please remember to sign and date your “Holder Request for Extension of Due Date” form.
Submit the Holder Notice Report and the “Holder Request for Extension of Due Date” so it is received in our office no later than November 13, 2012.

Source

State of California Franchise Tax Board Power of Attorney – Form 3520

Click here to get form: Power of attorney (3520) – State of California Franchise Tax Board

Use this FTB 3520, Power of Attorney Declaration, to grant authority to an individual to receive confidential tax information, or to represent you before Franchise Tax Board.
You can also use this form to authorize an individual to receive information from our nontax programs, such as Court-Ordered Debt Collections, Vehicle Registration Collections, etc.

Other Acceptable Forms of POA Declarations
They also accept these POA declarations:
• IRS Power of Attorney and Declaration of Representative (Form 2848) or IRS Tax Information Authorization (Form 8821), if you modify to state that they apply to Franchise Tax Board matters.
• A joint Board of Equalization/Franchise Tax Board/Employment Development Department Power of Attorney (BOE 392). You must check the “FTB box” to authorize representation
• General or durable POA declarations.
• Handwritten authority documents.

If you do not use our FTB 3520, ensure that your declaration includes:
• Your name, address, phone number, and social security number or business identification number.
• The name, address, phone number, and fax number of your representatives.
• A clear statement that grants a person (or persons) authority to represent you before the Franchise Tax Board, and specifies the actions authorized.
• The specific matters and tax years or income periods.
• For estate tax matters, the decedent’s name and date of death, and the representative’s authorization.
• Your signature and the date. If you file a joint declaration, then both spouses/RDPs must sign and date it.

Read more here