Newsletter
 
 

 

 

 

 

 
The partners and staff of Gary S. Riccio would like to wish all our clients and friends health and prosperity in 2001.

Following is a summary of the 2000 federal tax brackets and miscellaneous other items:

Single Individual
Taxable Income Bracket
$ 0- $26,250 15%
26,250-63,550 28%
63,550-132,600 31%
132,600-288,350 36%
Over 288,350 39.6%


Joint Return
Taxable Income Bracket
$0-43,850 15%
43,850-105,950 28%
105,950-161,450 31%
161,450-288,350 36%
Over 288,350 39.6%


Irrevocable Trusts
Taxable Income Bracket
$0-1,750 15%
1,750-4,150 28%
4,150-6,300 31%
6,300-8,650 36%
Over 8,650 39.6%


2000 standard deduction for those of you not itemizing is as follows:

Single filers $4,400
Single filers-age 65 $5,500
Joint filers $7,350
Joint filers-age 65 $9,050


The 2000 personal exemption is $2,800.

Gift and estate tax credit equivalent remains at $675,000 for 2001.


EDD - Independent Contractor Reporting Requirements

By now, if you have your own business, you have probably received a letter and fact sheet from the Employment Development Department regarding new legislation and reporting requirements relating to independent contractors, effective January 1, 2001.
The reason we are including it in our newsletter is that it applies to ANY BUSINESS that is required to file the form 1099-Misc. for services performed by an independent contractor.
The reason you need to be aware of this is as follows (and we are quoting directly from the EDD fact sheet):.

“You must report to EDD within twenty (20) days of EITHER making payments totaling $600 or more, OR entering into a contract for $600 or more with an independent contractor in any calendar year, whichever is earlier.”

For purposes of this new reporting requirement, an independent contractor is defined as an individual who is not an employee of the business or government entity for California purposes and who receives compensation or executes a contract for services performed either in or outside of California. Therefore, for example, a partnership, corporation or other form of legal entity for this reporting process would not fall under the definition of independent contractor and thus would not need to be reported on Form DE-542 (the 1099 filing requirements are unchanged).

The reporting form number is DE-542. To obtain forms and/or information call (916) 657-0259. You can also access their internet site at www.edd.ca.gov.


Next Page


Content and graphics copyright ©2005, Gary S. Riccio.
HTML and design copyright ©1997, ABC Internet.
Revised: January 12, 2001

Web site design and maintenance provided by:

ABC Internet