Avoiding Common Sales and Use Tax Problems State Board Of Equalization

Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
State Board Of Equalization
Avoiding Common Sales and
Use Tax Problems
About This Presentation
The contents of these slides do not constitute written advice
from the Board of Equalization under Revenue and Taxation
Code, Section 6596.
The following presentation is to be used only as an aid to
illustrate general tax concepts, but it does not address every
situation.
The Revenue and Taxation Code, regulations, court decisions
and other applicable laws generally control the decision making
process.
Throughout this presentation, you’ll find reference cites in the
bottom right hand corner of the screen. They are found in the
Board of Equalization’s Business Taxes Law Guide, Volume I,
which is available on our website at www.boe.ca.gov.
Please contact Board of Equalization staff for a comprehensive
response to your specific questions.
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Presumptions of the Tax Code
• All sales are taxable unless otherwise specifically
exempted
• Claimed exemptions must be supported by
documentation
• Taxpayer is responsible for maintaining and
providing documentation for potential examination
Common Types of Noncompliance
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Untaxed Purchases from Out-of-State Vendors
•
Withdrawal from Resale Inventory for Own Use
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Unsupported Sales for Resale
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Difference Between Recorded and Reported Taxable
Sales
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Reported Sales Lower than Expected Sales Based
Upon a Markup on Purchases
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Errors in Compiling Return
•
Difference Between Tax Accrued and Tax Paid
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Inadequate Records Resulted in Unreported Sales
Unsupported Sales in Interstate Commerce Delivered
to Instate Customer
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Untaxed Purchases From
Out-of-State Vendors
Items purchased without payment of California tax:
• Purchase for own use (not resale inventory) and
• From out-of-state businesses (including online
purchases)
Withdrawal from Resale Inventory
for Own Use
Inventory items
purchased with a
resale certificate
without payment
of tax
Resale Inventory
Items withdrawn
Use Tax
from inventory for
= Due on
use other than
Cost
resale (including
use as gifts and free
samples or for
personal use)
Gift
=
Use Tax
Due on
Cost
Roseville Small Business Seminar of October 30, 2014
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Use Tax for Individuals
• Can be reported on California Income Tax Return
• Can be reported on Sales & Use Tax Return
• Can be reported on BOE individual Use Tax
Return
Sales For Resale
Common ways to document sales for resale
(examples to follow):
• A Resale Certificate
• A Purchase Order containing
all the essential elements
of a resale certificate
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Basic Elements of a Resale Certificate
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Purchaser’s name
Purchaser’s address
Purchaser’s valid seller’s permit number
Item(s) being purchased
Statement that purchase is “for resale”
Authorized purchaser’s signature
Date resale certificate is signed
Purchaser’s title
Purchaser’s type of business activity
Seller’s name
Resale Certificate Verification
To verify Seller’s Permit number(s)
submitted on resale certificates, retailers
may call
888-225-5263
or access our website at
www.boe.ca.gov (Click Verify Permit)
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Resale Certificate Verification
Resale Certificates
• Available at some stationery stores, form BOE-230,
in Regulation 1668, and in Publication 73
• Must be filled out completely
• Must be taken timely and in good faith
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Purchase Order Used as
a Resale Certificate
Must specifically state “For Resale.”
Statements of “Nontaxable,” “Exempt,” or
“Taxable - No” do not fulfill this requirement
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Purchase Order and
a Resale Certificate
• Purchase Orders that
state “For Resale”
must contain the
same information as
required for a resale
certificate
• The resale certificate
will often say “see
purchase order”
About a Seller’s Permit
• Allows sales to be made in
California
• Provides a seller’s permit
number used to issue a resale
certificate for purchases of
inventory items without paying
tax
• Does not allow buying items for
personal or business use
without paying tax
• Permit must be issued in the
owner’s name for each business
address
Roseville Small Business Seminar of October 30, 2014
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Penalties for Improper Use
of Resale Certificates
• Misuse of resale certificate is
a misdemeanor
• The penalty is $500 or 10%
of the amount of tax per
transaction, whichever is
greater
Recorded vs. Reported Taxable Sales
Comparison between taxable
sales per your books and
records and taxable sales
reported to the BOE
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Verifying Your Sales Using
Mark-up Analysis
Verifying Your Sales Using
Mark-up Analysis
Generally for businesses such as
Grocery Stores, Liquor Stores, Restaurants,
etc.
Involves total sales, cost of goods sold,
and gross profit amount
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Verifying Your Sales Using
Mark-up Analysis
$ 100,000 Sales
- 75,000 Cost of Goods Sold
$25,000 Gross Profit
$25,000 ÷ $75,000 = 33.33% Markup
Verifying Your Sales Using
Mark-up Analysis
Gross Profit ÷ Cost of Goods Sold
= Mark-up
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Verifying Your Sales Using
Mark-up Analysis
Verifying Your Sales Using
Mark-up Analysis
Taxable + Nontaxable Sales = Total Sales
$100,000 Total Sales
- 75,000 Cost of Goods Sold
= $25,000 Gross Profit
Gross Profit divided by Cost of Goods Sold = Mark-up
Percentage
$25,000 ÷ $75,000 = 33.33% Markup
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Using Taxable Markup Analysis
to Verify Taxable Sales
In a business with both
taxable and exempt sales
(i.e. grocery store), the
markup for both taxable and
exempt products must be
examined separately.
Reported Taxable Sales Lower
than Expected Sales Based Upon
a Markup on Taxable Purchases
Taxable + Nontaxable Sales = Total Sales
Joe Reported:
TaxableSales
Exempt Sales = Total Sales
$33,000
$67,000
+
= $100,000
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Reported Taxable Sales Lower than Expected
Sales Based Upon a Markup
on Taxable Purchases
Taxable
$33,000 Sales
-$30,000 Cost of Goods Sold
$ 3,000 Gross Profit
$3,000 ÷ $30,000 = 10% Markup
Mark-up Analysis on
Non-taxable Food Sales
Non-taxable Food
$67,000 Sales
- $45,000 Cost of Goods Sold
$22,000 Gross Profit
$22,000 ÷ $45,000
= 49% Markup
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Reported Taxable Sales Lower
than Expected Sales Based Upon
a Markup on Taxable Purchases
Corrected Taxable Sales =
Cost of Taxable Goods Sold x Mark-up Factor
(from shelf test)
Joe’s Corrected Taxable Sales =
$30,000 Cost of Goods Sold x (100% + 30%) =
$39,000
Application of Mark-up to Taxable
Purchases
Calculated (Audited) Taxable Sales
Taxable Sales Reported
Difference
$39,000
-$33,000
$6,000
Amount assessed in the audit by Al = $6,000
Roseville Small Business Seminar of October 30, 2014
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Tax Accrued
Tax accrued, which is the amount of tax collected
from customers or recorded as amounts due to
the state, is compared to tax paid.
Required Records
Records must be maintained for at least four (4) years.
Examples of Records:
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Sales Invoices
Cash Register Tapes
Sales Journals
Purchase Invoices
Cancelled Checks
Purchase Journals
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Resale Certificates
Exemption Certificates
Purchase Orders
Shipping Documents
Schedules
Working Papers used in
preparing tax returns.
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Sales in Interstate Commerce
Common ways to document sales in interstate
commerce:
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Bills of Lading
Freight Invoices
Delivery Receipts
Correspondence
Unsupported Sales in Interstate Commerce
Delivered to Instate Customers
• Delivery to a purchaser in California
for subsequent shipment to another
state is taxable.
• When the goods are diverted by
the purchaser in transit to a California
location, the exemption is lost.
• Drop shipments.
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Taxpayer Information Section
• 800-400-7115
711 (TTY)
• Mon. - Fri. 8am to 5pm
• 1-1 Assistance
• 24 hr. fax-back service
• Recorded Information
Taxpayers’ Rights Advocate
888-324-2798
If you have been unable to resolve a disagreement with
the BOE and you would like to know more about your
rights under the law.
www.boe.ca.gov/tra/tra.htm
Roseville Small Business Seminar of October 30, 2014
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BOE Offers Free 1 - 1 Assistance
• A staff consultant will review
your business operation and
record keeping system.
• Call your local BOE office
today
to make an appointment.
Get it in Writing
Requests for written advice can be
emailed to the Board of
Equalization at:
www.boe.ca.gov/info/email.html
or mailed directly to the BOE field
office nearest you.
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
We wish you success
in your business venture.
We welcome your comments and suggestions.
2013
Forms of Ownership
Presented by
Small Business Education and Outreach Section
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
2013
Sole
Proprietorships
Sole Proprietorship
Characteristics
Business’
No formal
taxable year is
The simplest
transfer of
the same as
form of doing
assets to start
business.
the owner’s
business.
taxable year.
Sole Proprietorship
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Sole Proprietorship Characteristics
•Sole proprietors use Schedule C to
report the business’ profit or loss on
their Form 540 income tax returns
whether distributed or not.
•Losses generally offset other
income.
•Sole proprietor is not considered to
be an employee of the business.
Sole Proprietorship
2013
General
Partnerships
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Partnership Characteristics
Two or more persons
carrying on a business for
profit.
Flexible form of business
and relatively easy to set
up.
Partners decide
thewritten agreement is
A formal
organization'sadvisable.
structure and A formal written agreement
distribution of profits and
is advisable.
losses.
Partnerships
Partnership Characteristics
•Not a separate taxable entity.
•Partnership files informational
return using Form 565.
•Partners report profit or loss on
their individual Form 540 income
tax returns whether distributed or
not.
•Losses may be limited.
Partnerships
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
California Legal Entities
Limited
Partnerships
Limited
Liability
Partnerships
Corporations
Limited
Liability
Companies
These legal entities are taxed.
Legal Entities
California Legal Entities
Formed by filing the appropriate document or form
with the Secretary of State (SOS).
Limited Partnership
• Certificate of Limited
Partnership
• Form LP-1
Limited Liability
Partnership
• Begin as General
Partnership
• Application to
Register a Limited
Liability Partnership
• Form LLP-1
Taxed annually until formally closed.
Legal Entities
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
California Legal Entities
Formed by filing the appropriate document or form
with the SOS.
Limited Liability
Company
Corporation
• Articles of
Incorporation
• Various Forms
• Minimum Tax
• Articles of
Organization
• Form LLC-1
• Annual Tax and Fee
Taxed annually until formally dissolved or cancelled.
Legal Entities
2013
Limited
Partnerships
Partnerships
& Limited
Liability
Partnerships
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Limited Partnership
General Partner
Limited Partner
• Manages business
affairs.
• Personally assumes
all partnership debts.
• Only provides capital.
• May not participate
in management.
• Liability limited to the
amount of
investment.
Taxed annually until formally closed.
Partnerships
Limited Liability Partnership
Only used by persons licensed to
practice:
Public Accountancy
Law
Architecture
Engineering
Land Surveying
Partnerships
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Limited Partnership and Limited
Liability Partnership Characteristics
•Not a separate taxable entity.
•Subject to $800 annual tax.
•Partnership files informational
return using Form 565.
•Partners report profit or loss on
their individual Form 540 income
tax returns whether distributed or
not.
•Losses may be limited.
Partnerships
2013
C Corporations
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
C Corporation Characteristics
A separate legal entity
owned by
shareholders.
Must register with SOS
before conducting
business.
Can be costly to set up and maintain.
Can be costly to set up
Option of choosing an
Option of choosing an income year other
and maintain.
income year other than
than the calendar year.
the calendar year.
C Corporations
C Corporation Characteristics
•Files using Form 100.
•Taxed annually on its earnings at a
rate of 8.84% on net income.
•Subject to $800 minimum tax.
•Shareholders taxed on distributed
dividends.
C Corporations
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
2013
S Corporations
S Corporations
S Corporation Characteristics
A separate legal entity owned by
shareholders.
Must register with SOS before conducting
business.
Election is made for S corporation status.
S Corporations
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
S Corporation Characteristics
No more than 100 shareholders.
Only one class of stock.
Shareholder can only be individuals,
estates, or certain trusts.
S Corporations
S Corporation Characteristics
•A hybrid business entity.
•Files using Form 100S.
•State tax rate of 1.5% of net
income. Not subject to federal tax.
•Subject to $800 minimum tax.
•Shareholders report profit or loss
on their individual Form 540
income tax returns whether
distributed or not.
S Corporations
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
2013
LLC
Limited Liability
Companies
(LLC)
LLC Characteristics
A separate legal entity owned by
members.
Must register with SOS before conducting
business.
A hybrid business entity.
Restriction may apply to professional
services that require license, certification
or registration.
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
LLC Characteristics
IRS corporation classification: follow
corporation rules.
IRS partnership classification: follow
partnership rules.
For California only. A single member
classification: follow sole proprietor rules.
LLC
LLC Characteristics
Single Member and Partnership
•Single or partnership classified
LLCs file using Form 568.
•Subject to $800 annual tax.
•Maybe subject to an LLC fee
based on total income (gross
income plus cost of goods).
•Members report their share of
profit or loss on Form 540 income
tax returns whether distributed or
not.
LLC
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
LLC Characteristics
C Corporation Classification
•C Corporation classified LLCs file
using Form 100.
•Taxed annually on its earnings at
a rate of 8.84% on net income.
•Subject to $800 minimum tax.
•Members receive profits and
losses like C corporation
shareholder.
LLC
LLC Characteristics
S Corporation Election
•S Corporation classified LLCs file
using Form 100S.
•State tax rate of 1.5% on net
income. Not subject to federal tax.
•Subject to $800 minimum tax.
•Members report their share of
profit or loss on Form 540 income
tax returns whether distributed or
not.
LLC
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Forms of Ownership Information
FTB Publication 1123, Franchise Tax
Board’s Guide to Forms of Ownership
Forms of Ownership
Susan Maples
FTB Small Business Liaison
Telephone
•916.845.6724
Email
•[email protected]
ftb.ca.gov
Contact Information
Roseville Small Business Seminar of October 30, 2014
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Lila Fedler
Technical Advisor to the
Taxpayers Advocate
Telephone •916.845.7474
Email
•[email protected]
Contact Information
Brenda Voet
Technical Advisor to the
Taxpayers Advocate
Telephone •916.845.5613
Email
•[email protected]
Contact Information
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Recordkeeping for
Small Business/Self
Employed Individuals
Date
Necessity of Books and Records
• Monitor the business’s progress
• Prepare financial statements
• Keep track of deductible expenses
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Roseville Small Business Seminar of October 30, 2014
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Necessity of Books and Records
• Prepare tax returns
• Prepare for examination
• Business
–Verify expenses
–Proof of payment not enough
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Books and Records
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Records
Tax purpose of a record
Accounting entry
Accounting book
Income statement
Balance sheet
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Roseville Small Business Seminar of October 30, 2014
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UETA Definition of Electronic
Books and Records
Uniform Electronic Transaction Act defines
electronic records that, by electronic means, are:
•Created
•Generated
•Sent
•Communicated
•Received, or
•Stored
75
Recordkeeping Requirements
•
Internal Revenue Code §6001 and related
Income Tax Regulations under §1.6001-1;
generally provides that everyone must keep
adequate records.
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Record Types Needed
Gross Receipts
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Cash register tapes
Receipt book
Sales
Invoices
Credit charge slips
Forms 1099
77
Record Types Needed
Purchases and Expenses
• Amount paid
• Amount was for business purchases
78
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Record Types Needed (Cont’d)
Charitable Contributions, Travel, Transportation,
Entertainment, Gifts
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Amount
Each date
Description
Explanation of business benefit gained
79
Record Types Required
Employment Taxes
• Names
•Addresses and
•Taxpayer identification numbers for individuals
• who work for you or
• performs services and receives payment
80
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Record Types Needed - Assets
•Property used in business must be substantiated
•Maintaining records that show
•When and how property acquired
•Purchase price, and
•Use of property
81
Maintenance of Books and Records
• Use the method that works best
• Records should say:
–what was received
–from whom
–for what reason
• Keep records timely
82
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Responsibility of Books and
Records
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Taxpayer/business owner responsible for
maintaining adequate books and records
If paid preparer used, preparer’s records
needed also
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How Long to Keep Records
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Generally, three years from filing date to
examine tax return
Tax records must be kept at least until
statute of limitations expires
Certain tax returns much longer
Keep source records (checks, receipts, and
proof of business purpose) at least three
years
84
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
How Long to Keep Records (Cont’d)
•Until deduction no longer claimed
•Employment tax records, four years
•Assets, until sold or removed
•IRA contributions, permanently
•Broker statements, expiration of limitation period
•Improvements to residence, until sold
•Net operating losses, until statute of limitations
expired on last tax return claiming a loss
•Follow state recordkeeping laws also
85
IRS Resources
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Publication 15, Circular E - Employers Tax
Guide
Publication 463, Travel, Entertainment, Gift, and
Car Expenses
Publication 535, Business Expenses
Publication 536, Net Operating Losses
Publication 547, Casualties, Disasters and
Thefts
Publication 556, Examination of Returns, Appeal
Rights & Claims
86
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
IRS Resources
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Publication 594, The IRS Collection Process
Publication 3498, The Examination Process
Publication 5, Appeal Rights and Preparation of
Protests for Unagreed Cases
Circular 230, Regulations Governing the
Practice of Attorneys, Certified Public
Accountants, enrolled Agents, Enrolled
Actuaries, and Appraisers before the Internal
Revenue Service
Publication 583, Starting a Business and
Keeping Records
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IRS Resources (Cont’d.)
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Publication 225, Farmers Tax Guide
Publication 1066-C, A Virtual Small Business
Workshop CD
Publication 2194, Disaster Losses Kit for
Individuals
Publication 2194B, Disaster Losses Kit for
Businesses
Publication 4758, Reconstructing Your Records
Publication 4796, IRS Records at Your
Fingertips
Visit IRS.gov
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Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Employee
or
Independent
Contractor
Introductions
Ling Wu
Employment Tax Consultant
www.edd.ca.gov
Taxpayer Assistance Center:
1-888-745-3886
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Objectives
• Discuss importance of proper
worker classification.
• Explain the differences between
employees and independent
contractors.
• Define common law, statutory and
exempt employment.
• Identify resources to help properly
classify workers.
Reasons to Properly Classify Workers
•
Avoid reclassification audits and investigations
by the EDD, Internal Revenue Service, and/or
Department of Industrial Relations due to:
 Worker claims – unemployment/injury.
 Worker informants.
 Competitor informants
•
Prevent additional taxes, penalties, and
interest.
•
Avert possible revocation of state or local
licenses.
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Misclassification Example
One worker, earning
$20,000 for one year
(tax year 2013)
Employer A
(Correctly classifies
worker as employee)
Employer B
(Misclassifies worker as
independent
contractor)
UI (3.4 percent)*
$238
$238
$7
$7
*New employer rate
ETT (0.1 percent)
SDI (1.0 percent)
$200
PIT (6.0 percent)
$1,200
Total due for one year
$245
$1,645**
** Plus penalty and interest
Types of Workers
 Independent
Contractors
 Employees
 Common Law
 Statutory
 Exempt
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Employee and Independent Contractor
 Common Law Employee:
An individual who performs services
for you and is subject to your control
regarding what will be done AND how
it will be done.
 Independent Contractor:
An individual who performs services
for you BUT you control only the
result of the work.
Common-Law Factors
EDD’s Primary Factor
Right of Direction and Control
EDD’s Secondary Factors:
Distinct trade or occupation
Supervision
Skill level
Tools and place of work
Length of time
Method of payment
Regular part of business
Belief of the parties
Extent of actual control
Services benefit the principal
Profit/loss
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Secondary Factors
FACTORS
EMPLOYEE
INDEPENDENT CONTRACTOR
Distinct trade or
occupation
No separately
established business
Separately established business
Supervision
Follows procedures
Own methods
Skill level
Training
Own expertise
Tools and place of work Business provides
Worker provides
Length of time
Continuous
Isolated event
Method of payment
Guaranteed payment
Sets rate and pay date
Regular part of
business
Vital to business
Incidental to business
Belief of parties
Employee
Independent contractor
Extent of actual control
Owner sets work
schedule
Worker sets schedule
Services benefit
principal
Benefits owner's
business
Benefits owner as individual
Profit or loss
No investment or
financial risk
Investment and financial risk
Statutory Employees
Employee by law under a specific statute.
Examples include, but not limited to:
Corporate officers
Unlicensed contractors
Certain Limited Liability Company (LLC)
members
Resources:
DE 231SE, Statutory Employees
DE 231PC, Payments to Corporate Officers
DE 231LLC, Limited Liability Entities
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Exempt Employees
Certain employees are not subject
to specific taxes or withholding
provisions. Examples include:
 Domestic workers  Direct sellers
 Family members  Real estate agents
Resource:
DE 231EE, Exempt Employment
Additional Resources
DE 44, California Employer’s Guide
DE 231, Employment
DE 38, Employment Determination Guide
DE 1870, Determination of Employment Work
Work Status
Employee or Independent Contractor Course at:
website:
www.edd.ca.gov/Payroll_Taxes/Web_Based_Seminars.htm
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Independent Contractor Reporting
DE 542, Report of Independent Contractor(s)
 File timely to avoid penalty and interest.
 Report within 20 days if you are making
payments totaling more than $600 or
entering into a contract of $600 or more,
whichever occurs earlier.
When Hiring New Employees
• Submit DE 34, Report of New
Employee(s).
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
New Employee Reporting
• Locate parents who are
delinquent in their child
support obligations.
• Report new hires or
rehires within 20 days.
• File timely to avoid penalty
and interest.
e-Services for Business
• Fast, easy, and secure way
to manage your payroll taxes
online.
• View and edit returns
or reports prior to submission.
• Available 24 hours a day, 7 days
a week.
https://eddservices.edd.ca.gov/index.html
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
e-Services for Business Features
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Register for employer account
File returns and reports online
Make payments by EFT or credit card
Review account balance
View payroll tax rates
Make account updates
View previous returns and payments
Close account
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Business Loan
Readiness
Anthony Rucker
Senior Loan Officer
California Capital FDC
(916) 442-1729
“C”s of Lending
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•
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Cash Flow
Credit
Collateral
Capital
Capacity
Character
Clarity (Presentation)
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Cash Flow
•
money in and money out
Credit
•
the
performance
of past debt
obligations
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Collateral
•
the liquidation value of assets
pledged to secure the loan
Capital
•
amount of one’s own money
contributed to the business, or
equity injection
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Capacity
•
one’s experience, training, and
education to run a business
Character
•
combined with credit and
capacity, the subjective
influence in a loan decision
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Clarity (Presentation)
•
the presentation of your business
plan or business loan proposal to a
lender
Types of Loans
•
•
•
Term Loan
Lines of Credit
Hybrids
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Monthly Payment
•
•
•
Loan Amount
Interest Rate
Length of Repayment Period
Contact Information
Anthony Rucker
California Capital FDC
2000 “O” Street, Suite 250
Sacramento, CA 95811
Office Number: (916) 442-1729
[email protected]
Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Marketing YOUR Business
on the ‘Net
Michael Saccomano,
Capital Region SBDC
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What We’ll Touch on Today
FREE Local & Regional Promotion
Google, Yahoo, Bing, YP … they all do it
Making Social Networks work for you
FaceBook, Twitter, Pinterest, LinkedIn …
Other Free / Low-cost promotional ideas
Blogs, eMail Marketing …
Domain Names, Websites, Hosting, …
Q&A
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Seminar Presentations
FREE Local &
Regional Promotion
No Website Required
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Local / Regional Promotion
(no website required)
Google, Bing, Yahoo, YP, …
they all do it – for FREE
Displays on Maps searches
AND many regular searches near the Top of page 1
Tell Visitors all about your business
(description, hours, pictures, keyword searches, …)
A local example
Try “Honda auto repair, Roseville”
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Seminar Presentations
Local & Regional Promotion:
- Ex: Google Plus (aka Maps)
Requires a free Google Plus Account
Log in to yours, or create one
Will ask you to locate your business listing,
Or click on Google Maps, “put your business .. “
Fill in the blanks – be thorough
You will be able to edit/enhance immediately
Don’t want to give your address? There may be a
way to hide it later on
You MUST verify before listing is active!
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Local & Regional Promotion:
- Bing, Yahoo, YP.com …
Bing Places for Business
Log-in to your Microsoft account (or sign up)
Locate your business, or www.BingPlaces.com
Yahoo Local
Log-in to your Yahoo account (or sign up)
Locate your business or SmallBusiness.Yahoo.com
YP.com (AT&T Yellow Pages)
Locate your business, or www.MyFreeYP.com
You’ll be asked to sign in or create an account
All ask for about same info as Google asked
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Seminar Presentations
Should Social Networks
be part of your Marketing?
You do NOT have to do them all
– or maybe none fit your needs!
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Are Social Networks for You?
FaceBook
Many businesses consider this a ‘must have’ site
YouTube
YouTube gets more searches than Google
Twitter
If following your every move is what you need ...
LinkedIn
“The” site for building business relationships
Pinterest
FaceBook done with pictures
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Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
More Social Networks ??
More alphabet soup
Tumblr
StumbleUpon
RSS
and a few dozen more???
Start with the “names” and then look at specialized
networks that might fit your business?
Don’t get carried away – A few managed well are better
than a bunch poorly maintained!
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YouTube
Do it yourself video sharing, with VERY High
visibility
Can be created by almost anything (phone, camera,
etc) and uploaded from almost any platform
YouTube reports more searches than Google
Get creative – going viral can get you visibility in the
millions
Making it fun vastly increases your traffic
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Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Twitter
Create a following for your business or service
in short bursts
Not for every business, but maybe …
Notable successes include personalities, politicians,
etc
Also very popular: food carts, others that move
around and need to be found
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Other FREE /Low Cost
Promotional Opportunities
And still No Website Required
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Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Blogs
Blog - “ a discussion or informational site published
on the World Wide Web and consisting of discrete
entries ("posts") typically displayed in reverse
chronological order “
Become the ‘expert’ in your field
Great visibility builder IF you able to make frequent
and consistent postings
WordPress.com – Free (basic), highly visible, fairly
easy to learn. (WordPress.org for themes, add-ins)
Blogger.com – Googles version, also free
You may want (need) to host somewhere else for all
the add-ins to work
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Other Promotional Opportunities
eMail Marketing
For periodic contact w customers and prospects
Allows self-subscription and self un-subscription
Be professional
Spell and syntax check; no animations
Get important info in the body (attachments may
not be opened) - if attachments PDF them
Commercial programs make it easy, and ‘spam free’
Mail Chimp – free for first 2000 names
Constant Contact – widely used @ $15/mo +
Microsoft Office 365 @ $3.99/mo +
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Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
What Kind of Website
Do You REALLY Need?
You can spend $0 to $1,000’s
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What are Your Website Requirements ?
Basic info?
Static, single visit, basically an online yellow page ad
Google Places, FaceBook et al may suffice for some
businesses
Expanded information?
More info, may change periodically, repeat visitors?
May need a more sophisticated software program
On-line sales?
Shopping cart? Merchant Account? …
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Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Free Websites
Google Sites (sites.google.com)
Originally very basic, but they have been upgrading
Limited starter templates, but you build on others
Example: www.AutoServiceOutlet.com
WordPress (can be more than just a blog)
Hosting at WordPress allows basic website, other
hosting services allow expanded features
Extensive templates, and lots more for sale at low $
Example: www.sbdc.net
Bing & Yahoo - basic sites are Free
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Where do you go from here?
Work that local promotion
Complete Google, Bing, YP & Yahoo Maps, ..
Schedule time weekly to edit, monitor results, …
Implement any of the other promo’s that fit
your goals
If you create a blog you should spend time regularly
If you create social networking, keep it current
If you setup eMail Marketing, put the links on your
website, blog, etc, etc
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Roseville Small Business Seminar of October 30, 2014
Seminar Presentations
Where do you go from here? (Sales Pitch)
Capital Region SBDC offers Free counseling
Schedule help, and/or a website audit
If a group of you want to work on something in
more depth together
ask office to schedule a small group counseling session?
And remember, we also can help you with
Business plans, loans, QuickBooks, print marketing,
social media, etc, etc,
(916) 563-3210 or visit www.SBDC.net for more
info
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