One of the most common problems that employees come across when filing their taxes are not only do you have to be real careful about what you declare, but also that there are many instances where one can get in trouble with the law. For instance, California requires residents and employers throughout the state to maintain a Workers' Compensation Insurance policy.
This means if your company is being sued for any reasons related to negligence or injury of an employee, it may be required by law that they also file for this insurance as part of their defense. In order to maintain the policy, their employer will file an Employee Safety and Insurance Plan form W-2 consisting of two parts:
1.Obviously, the part where you'll be paying for the coverage to be in effect. 2.The other piece is that you'll need to certify that the company does indeed carry the insurance. If this is not true, then they could be held liable for all damages incurred even if they have no knowledge on what happened and in which way it occurred.
The issue is that many employees feel as though they're being pressured by higher ups (their bosses) to certify what's happening and in many cases these are quite glib with these forms. In order to get this done correctly, it's always a good idea to have a qualified professional look over the filings beforehand. Here's a rundown of some of the issues that you might run into and how to handle them in order to remain in compliance:
1.The False Certification:
This is just one of those things that can happen without your knowledge and it'd be best if you kept an eye on these filings. According to California law, it's possible for an employer and employee to come forward with their own story on what happened in the event that there are no witnesses (that's why it's very important for employees to report work accidents).
The issue is that there are employees who may be intimidated by their boss and in many cases they don't want to make waves because they're afraid they'll get fired (it's really sad when this happens). The employee may sign the form without knowing that their boss is going to go ahead and state something completely contradictory. What ends up happening is that there's now a discrepancy between what the employer said on the form and what was originally said by the employee. It can get very confusing for both parties if this occurs:
2.You were terminated for signing the form.
3.You stated that the company was covered by workers' compensation on the form and you were fired after signing it.
The safest thing to do is to hire a qualified professional before filing anything with the state in order to make sure that what you're saying is accurate and truthful. This might cost a little bit upfront but it's possible that you could end up saving yourself thousands of dollars in penalties, fines and even jail time if it's found out that you've been lying on your taxes.
In general, the filings for California can be very tricky and it's important to always make sure that you stay on top of things in order to avoid any complications later on.
It's always best to hire a qualified professional before filing anything with the state as they will be able to provide you with reliable information.
In most states, when employees file their taxes, they are supposed to declare all of their income as taxable as opposed to only declaring some of it. For this reason, most individuals pay a higher tax rate than they should if they only declare some of their wages rather than the whole amount.
This means if your company is being sued for any reasons related to negligence or injury of an employee, it may be required by law that they also file for this insurance as part of their defense. In order to maintain the policy, their employer will file an Employee Safety and Insurance Plan form W-2 consisting of two parts:
1.Obviously, the part where you'll be paying for the coverage to be in effect. 2.The other piece is that you'll need to certify that the company does indeed carry the insurance. If this is not true, then they could be held liable for all damages incurred even if they have no knowledge on what happened and in which way it occurred.
The issue is that many employees feel as though they're being pressured by higher ups (their bosses) to certify what's happening and in many cases these are quite glib with these forms. In order to get this done correctly, it's always a good idea to have a qualified professional look over the filings beforehand. Here's a rundown of some of the issues that you might run into and how to handle them in order to remain in compliance:
1.The False Certification:
This is just one of those things that can happen without your knowledge and it'd be best if you kept an eye on these filings. According to California law, it's possible for an employer and employee to come forward with their own story on what happened in the event that there are no witnesses (that's why it's very important for employees to report work accidents).
The issue is that there are employees who may be intimidated by their boss and in many cases they don't want to make waves because they're afraid they'll get fired (it's really sad when this happens). The employee may sign the form without knowing that their boss is going to go ahead and state something completely contradictory. What ends up happening is that there's now a discrepancy between what the employer said on the form and what was originally said by the employee. It can get very confusing for both parties if this occurs:
2.You were terminated for signing the form.
3.You stated that the company was covered by workers' compensation on the form and you were fired after signing it.
The safest thing to do is to hire a qualified professional before filing anything with the state in order to make sure that what you're saying is accurate and truthful. This might cost a little bit upfront but it's possible that you could end up saving yourself thousands of dollars in penalties, fines and even jail time if it's found out that you've been lying on your taxes.
In general, the filings for California can be very tricky and it's important to always make sure that you stay on top of things in order to avoid any complications later on.
It's always best to hire a qualified professional before filing anything with the state as they will be able to provide you with reliable information.
In most states, when employees file their taxes, they are supposed to declare all of their income as taxable as opposed to only declaring some of it. For this reason, most individuals pay a higher tax rate than they should if they only declare some of their wages rather than the whole amount.
