Anyone who is considered an employer in California must comply with payroll tax obligations, whether or not you may object to them! Yes, some of the programs they fund have questionable track records of abuse by workers and mismanagement by the CA E.D.D. Nevertheless, this article is a good summary provided by Gehres Law Group. Excerpt below.
There are four payroll tax programs in California which are administered by the Employment Development Department. These payroll taxes include:
Unemployment tax: Unemployment tax must be paid on the first $7,000 in wages employers pay to each employee during the calendar year. Employers pay this tax on a quarterly basis. Tax rates vary based on factors including whether the employer is a new employer as well as the employer’s experience with the unemployment program. Taxes could vary between 1.5% and 6.2%. This tax funds unemployment payments for workers who are laid off from their jobs.
Employment training tax: Employment training tax is charged at a rate of .1% of the first $7,000 in wages employers pay to employees during each calendar year. The tax provides funding to train employees in industries necessary to keep California businesses competitive. Employers pay this tax.
State disability insurance: State disability insurance is funded by a tax on employee wages. Employees pay this tax. Employers must withhold .9% of the first $110,902 in wages that are paid to employees during each calendar year. The taxes fund short-term disability payments and paid leave for eligible workers who take time off to care for a new child or for a sick child, parent, grandparent, sibling, spouse, or other close relative
California personal income tax withholding: California personal income taxes are paid by workers on income they earn within the state of California. Employers must withhold an appropriate amount of money from an employee’s entire salary based on the information provided by employees on their W-4 forms.
Employers are responsible for the payment and/or collection of each of these payroll taxes as well as for the timely submission of payroll tax forms and payments of all taxes due.
Real example of California and Federal Taxes Withheld by Employee and Employer
The Los Angeles City Council voted and approved new regulations for recreational cannabis businesses. Recreational marijuana will officially spread like wildfire on January 1, 2018, per California state law. This will be a boon for industrial real estate landlords as cannabis growers and cultivation operations typically pay premium industrial rental rates compared to regular warehouse and manufacturing users. Pot growers often pay in excess of 2X the market rate. Some key rules are below from the L.A. Times article. The mayor is expected to sign the ordinance soon.
Under the new regulations, pot shops can open their doors only in specific commercial and industrial zones and must operate at least 700 feet from schools, public parks and libraries, child care centers, alcohol and drug treatment centers and other “sensitive” sites, as well as from other pot retailers.
Other kinds of marijuana businesses, including growers and manufacturers, would be confined to industrial zones and banned within 600 feet of schools. And marijuana manufacturers that use volatile solvents would also be prohibited within 200 feet of residential areas.
To prevent an “undue concentration” in neighborhoods, city leaders also decided to cap the number of pot shops, growers, manufacturers and marijuana “micro-businesses,” which do a combination of things, allowed in each community.
Although the local CPI has hovered between 0-2% since the recession. In 2017 we have seen it steadily rise above 2% to a current 2.5%. This will affect the annual increase increments for new leases signed. Historically industrial escalation clauses demanded a floating increase between 3-5%, whatever the CPI at the time.
The City of Los Angeles developed The LA Business Portal, which provides all of the information you need to plan, start, manage, and grow your business. This is a good resource for business owners moving into the city limits. There is guidance on zoning, compliance, employees, registration, etc…
Former American Apparel Facility.
Classic Brick Buildings, BowTruss Roof Roof, Great Natural Light.
Creative Campus conversion: art gallery, live/work.
Warehouse, Manufacturing, or Cannabis/Cultivation/Growing Uses.
Skylights, Sprinklers, Gated Parking.
1,200 AMPS of power, 120/240 Volts, 3 phase.
Adjacent to Slauson Central Retail Plaza: Starbucks, Fatburger, etc.
10 minutes south of DTLA Arts District.
For sale.
