Industry Updates










Anaheim Enterprise Zone

By Ed Lieber, CPA, ELLS CPAs & Businesses Advisors

The waiting is over!  Anaheim received its Enterprise Zone final designation, with effective start date of February 1, 2012!  Yes, enterprise zones are still around in California.  What you heard on the news was the elimination of economic development agencies.  Enterprise zones have NOT been eliminated!  Orange County has two enterprise zones – Anaheim and Santa Ana. 

If you think your business is located in an enterprise zone, give us a call at 714.569.1000, to learn about all of the tax incentives that may be available to you!

Posted 1/23/2012

Payroll Tax Cuts; To Cut Or Not To Cut?

By Brett Adoph, Payday Payroll

With the expiration of the payroll take cuts just around the corner, there has been a lot be debate on this topic. Check out this great article about what the GOP candidates are saying about the cuts, here.

For more information call Brett Adolph, Payday Payroll at 714.467.3434

Posted 12/19/11

Temporary Debt Refinance Program

By Robert Dodge, Southland EDC

Earlier this month the SBA announced a major revision of the 504 Temporary Debt Refinance Program. This program allows small business owners to borrower up to 90% of the appraised value of owner occupied real estate. In addition, they can now take cash out and use it for eligible business expenses. Attached is a sheet that summarizes these changes, click here.

For more information about this program call Robert Dodge at 714.868.0012

Posted 11/21/11


Anaheim Enterprise Zone News

By Ed Lieber, CPA ELLS CPAs & Business Advisors

ELLS CPAs share infomration about the recently appointed Anaheim Enterprise Zone. Check it out our blog, click here.

Posted 11/16/11

Record Level Earnings for Community Bank

By Jesus Leon, Community Bank

Commuunity Bank shares an earnings report fofr the third quarter of 2011. They are reporting a year-to-date increase of 19%! For more information click here. 

For more information call Jesus Leon at 714.704.2369
Posted 11/16/11


HR Update from PayDay Workforce Solutions

By Brett Adolph, Payday

HR Alerts

Changes to OSHA Recordkeeping Requirements. Published on June 22, 2011, in the Federal Register, the federal Occupational Safety and Health Administration (OSHA) proposed changes to its current requirements on recordkeeping and reporting of employee injuries and illnesses. OSHA is seeking comments from the public until September 20, 2011.

Proposed Rules Related to Health Insurance Exchanges. Published on July 15, 2011, in the Federal Register, the U.S. Department of Health and Human Services (HHS) issued two proposed rules: (1) Establishment of Exchanges and Qualified Health Plans and (2) Standards Related to Reinsurance, Risk Corridors and Risk Adjustment. In regards to the operation of health insurance exchanges under the Patient Protection and Affordable Care Act (PPACA), the rules assist with the maintenance of premium stability in the exchanges upon formation. Public comments are due on or before September 28, 2011.

Unemployment Discrimination Legislation. Introduced on July 12, 2011, by the U.S. House of Representatives, the proposed Fair Employment Opportunity Act of 2011 would prohibit employers and employment agencies from discriminating against the unemployed or placing job advertisements or posts stating that unemployed individuals are unqualified.

Final SEC Whistleblower Program Rules. Effective August 12, 2011, the U.S. Securities and Exchange Commission (SEC) issued final rules to implement the Dodd-Frank whistleblower program, such that publicly traded employers should not interfere with an employee’s communication efforts with the SEC or take any adverse actions against an employee for exercising his or her rights under the whistleblower provisions.


Community Bank Reports 46% Increase in 2011 First Quarter Earnings. Click Here

Community Bank is offering AMAZING Deals on Owner Occupied Real Estate. Click Here

Check out These Equipment Financing Rates! Click Here

By Jesus Leon, Community Bank

For more information about Community Bank call Jesus H. Leon at 714.7042369

Check References Before Hiring
By Brett Adolph, Payday Payroll

Everyone practice has or has had a problem employee at some point. Handling employees can be difficult and scary because of the legal ramifications associated if not handled properly. Nip problem employees in the bud by calling references before hiring. Here is an great blog about this process, click here.


For more information please contact Brett at (714) 467-3434 (office), (562) 889-0730 (mobile) or via e-mail at brett@paydayonesource.com 


Small Employer Health Insurance Tax Credit
By Ed Lieber, ELLS CPAS & Business Advisors

Check out my presentation about the Small Employer Health Insurance Tax Credit, click here.

For more information call 714.569.1000



Payroll Requirements for 2011
By Brett Adolph, Payday Payroll

As  of  January 1, 2011, many businesses will be required to make federal tax deposits electronically.  If you are processing your payroll in-house, you need to know about these changes.

Your options for making your federal tax deposits include:
1.Using the Web site or the voice response system.
oYou must be enrolled in EFTPS (Electronic Fund Transfer Payment System) to pay via either system. If you recently were pre-enrolled in EFTPS and cannot find your PIN, call (888)434-7338. Payments must be scheduled by 8 p.m. ET the day before the due date to be received timely.
2.Asking your financial institution to initiate an ACH Credit payment on your behalf.
oThis option requires an EFTPS enrollment, but your banking information is not part of that enrollment. Financial institutions are not required to initiate payments for you, and may charge you a fee if they offer this service. Check in advance for cutoff times, which may be earlier than if you make a payment yourself using EFTPS.
3.Asking another trusted third party such as Payday Payroll Service (see contact information below) to make the payment for you.
4.In extraordinary circumstances, asking your financial institution to make a same-day tax wire payment for you.
oFinancial institutions are not required to do this, and may charge you a fee.  Check with your financial institution in advance for cutoff times.

Do you need more information or the link to the website mentioned above? 
Please contact Brett at (714) 467-3434 (office), (562) 889-0730 (mobile) or via e-mail at brett@payday2000.com



FREE Breakfast Seminar : How to Leaverage an Integrated Lean & AS9100 System. Click here for details.


How can you protect you and your cash from employee theft?

By Ed Lieber, ELLS  CPAs & Business Advisors

The responsibilities of receiving funds, disbursing funds, writing checks, signing checks, and reconciling bank accounts are often given to a single employee when in fact these duties should be separated.  Having one employee responsible for all cash-related functions makes your business vulnerable to fraud. We all want to trust employees but often times employees have external pressures that result in workplace theft.

Here are a few steps that you can take to protect you and your company:

1. Have monthly bank statements mailed to the owner’s home.
2. The owner should review each month’s bank statement for unusual transactions such as declining deposits and unfamiliar payees.
3.  The owner should also look for signatures or endorsements that look forged, missing checks, check numbers that are out of order, and checks where the payee listed does not match the name in the check register.

Business owners should also consider an independent review of the cash accounts and bank statements by an anti-fraud specialist. Click here to fill out a risk assessment checklist and send it in to be reviewed by one of our Certified Fraud Examiners. For more information about our anti-fraud services call ELLS CPAs at 714.569.1000.




New Payroll Taxes on Tap

By Brett Adolph, Payday Payroll

Currently, the 1.45% Medicare tax portion of Social Security tax applies to "earned income," such as wages, but not "unearned income." Effective in 2013, the new health care law creates two new taxes:

*An additional 0.9% Medicare tax is imposed on earned income of joint filers above $250,000 ($200,000 for single filers).

*A 3.8% Medicare tax is imposed on "net investment income" of joint filers with a modified adjusted gross income (MAGI) above $250,000 ($200,000 for single filers). For this purpose, net investment income includes interest, dividends, royalties, rents, gains from dispositions of property and passive activity income, but not distributions from qualified retirement plans and IRAs.


AS9100 Certification Readiness Review click here.
By Gary Drake, CMTC

HIRE Act Update click here.
By Brett Adolph, Payday Payroll

Breaking News from Barney and Barney: Healthcare Reform Bill. Click here.

Are You Considering Changing Employees to Independent Contractors?

By Brett Adolph, Payday Payroll

This is a common question that we get from our clients. Although it is advantageous to the business to have independent contractors over employees, make sure that yours qualify for the designation.

According to the IRS, people engaged in an independent trade, business, or profession in which they offer their services to the general public generally are not employees. However, whether such people are employees or independent contractors depends on the facts in each case. The general rule is that an individual is an independent contractor if you have the right to control or direct only the result of the work and not the means and methods of accomplishing the result. If workers must follow your instructions on when, where, and how to do the work, they are more likely to be employees. The law favors classifying workers in an employee status whenever possible.

Although classifying an individual as an independent contractor can be a valid and appropriate business choice, employers need to exercise extreme caution in making the proper distinction between employees and bona fide independent contractors. Failure to make the correct decision is risky business.  In addition to back taxes or premiums, sanctions can include civil fines, interest, and criminal prosecution.

For the IRS list of questions to consider in determining whether an individual is an employee or an independent contractor, click here



Year End Tax Reminders

By ELLS CPAs

Time is running out on many tax savings and lucrative business credits. Extensions have been slow in materializing as Congress focuses its attention on Healthcare legislation while business is taking a back seat, at least for now. There are still opportunities for tax saving strategies that can be implemented before the final bell on December 31st and we encourage you to look over the list and call your ELLS advisor if you think you may want to act on any of them.

New Sales Tax deduction for motor vehicles! Whether you itemize or take the standard deduction, you can increase your deduction by the amount of sales tax you paid on the purchase of any number of new motor vehicles (including motorcycles and motor homes) that were purchased after February 16th and before December 31st 2009. Sales tax on only the first $49,500 of purchase price qualifies. The phase out begins at $250,000 (married) or $125,000 (single) taxpayers.

Energy-saving tax credits: The credit percentages for building envelope components (windows, doors) is now 30% and the maximum credit is $1,500. Also applies to furnaces, furnace fans, central a/c and water heaters. Credit is available in 2010 and there is no phase out.

Employers who offer Flexible Spending Accounts: As part of their Cafeteria Plan have until Dec 31st to change the rules to enable employees to have another 2 ½ months in 2010 to spend their 2009 allotments. The first $13,000 of gifts ($26,000 for married couples) made by a donor to each donee in calendar year 2009 is excluded from the amount of the donor’s taxable gifts. You must act no later than Dec 31st to take complete advantage of annual gift tax exclusions. Unused annual exclusions can’t be carried over and are forever lost. The check must be presented in the calendar year for which completed gift treatment is sought. The donee should be sure to deposit and cash the check before year-end, so that there’s no doubt as to when the gift was made.

Machinery and Equipment: Most new machinery and equipment (as well as software) bought and placed in service in 2009 qualifies for a 50% bonus first year depreciation deduction. This benefit has not yet been extended beyond 2009. Individual taxpayers who are at least 70 ½ years old may contribute to charities directly from their IRAs without having the amount of their contribution included in their gross income. High-income taxpayers who are over AGI limits for a Cloverdell Education Savings Account (CESA) can contribute to a qualified 529 tuition plan instead. There are no AGI limits on contributions to 529 plans. Distributions from 529 plans are tax free only if used to pay for higher education.

Businesses of all sizes can now carry back operating losses for up to five years To claim a full deduction on the 2009 return for a contribution of “qualified appreciated stock” to a private foundation, the private foundation must be set up and the contribution made before December 31, 2009. A self-employed person who wants to contribute to a Keogh plan for 2009 must establish that plan before the end of 2009. If that is done, deductible contributions for 2009 can be made as late as the taxpayers extended tax return due date for 2009. Business taxpayers can claim a deduction under Code Section 199 to offset income from domestic manufacturing and other domestic production activities. Since the rate of deduction will increase to 9% in 2010 from 6% in 2009, taxpayers in this case should consider deferring some of their domestic production activity income from 2009 to 2010. Again, check with your ELLS advisor for further details on any of the above tax-saving strategies.