California state tax laws are very strict and numerous. These laws can make it difficult for any business to ensure they are reporting all they need to. For example, some businesses may not realize the new employee reporting requirement. Businesses also need to know the tax rate, how to obtain resale certificates and what the large corporate understatement penalty is.
New employee reportingTax laws in California require that the hiring of new employees be reported to the state. This aids the state in finding tax and child support debtors.
Employment Development Department of the State of California provides more information on this requirement.
Tax rateThe California state tax rate is the amount of taxation on the sales and use within the state. The sales and use tax rate changes intermittently.
California State Board of Equalization provides more information on what the tax rate is and how it is calculated.
Resale certificatesBusinesses that purchase items for resale can become registered sellers with the state by obtaining resale certificates. This certificate stipulates that the purchaser does not have to pay tax at the time of the purchase, because the item is going to be resold.
California Tax Service Center provides more information on resale certificates.
Large corporate understatement penaltyCalifornia requires that businesses understand the large corporate understatement penalty. This penalty is applied to corporations that fail to report all taxes. The penalty is for 20% of the total amount that was understated, whenever the corporation fails to report taxes in excess of $1 million.
State of California Franchise Tax Board provides more information about large corporate understatement penalties.
E-ServicesMany of California's taxes can be paid online through e-services. In addition, e-services also allow businesses to make changes to address information and to register for an employee account number.
Employment Development Department offers more information about e-services.
Alcoholic beverage tax programThe alcoholic beverage tax program is a program that collects a tax at the sale, distribution and importation of alcoholic beverages. It is an excise tax collected on a per-gallon sale.
California Department of Alcoholic Beverage Control provides more information.