Frequently Asked Questions
Answers to Commonly Asked Questions
- Why do I need a CPA?
- How much do you charge?
- How long should I keep financial records?
- Under what circumstances do I have to pay my employees for meal and rest periods?
- What are the requirements for independent contractors reporting (Form DE 542) to the Employment Development Department?
Why do I need a CPA?
At GYL Decauwer LLP, our CPAs provide a wide range of services, including financial planning and guidance to strategies that ease your tax burden. For example, we can help with:
- Complex tax returns that include rental properties, a small business and investment activities.
- Accounting and bookkeeping services, as well as training in computer software (e.g., QuickBooks) and assistance with payroll and/or sales tax processing.
- Preparation of financial statements for bank presentations and subsequent loan processing, as well as for your company's management to make pivotal short- and long-term business decisions.
How much do you charge?
Our initial consultation is free. This meeting allows us to get to know each other and enables us to assess your financial needs and opportunities. Because every client is unique -- with differing needs -- our initial meeting, similar to our overall service, is designed specifically to uncover and understand your goals. At the end of our meeting, we will determine action steps, one of which is to develop a proposal that outlines our mutually agreed upon services
and fee structure. That way, you know exactly what you will receive for your investment. No surprises. Our fees range from hourly billing to fixed fee engagements.
How long should I keep financial records?
That depends:
- Tax returns, documents relating to tax liability and year-end financial statements should be retained permanently.
- Bank statements should be stored for three years.
- Payroll records should be saved for seven years.
- Other statements can be destroyed at your discretion; however, it's a good idea to consult with your accountant before disposing of any financial records.
Under what circumstances do I have to pay my employees for meal and rest periods?
Lunch or meal periods do not count as time worked if they meet two requirements:
- The meal period must normally be at least 30 minutes in duration.
- The workers must be completely relieved from their duties during that time.
For example, if office workers are required to eat at their desks, the time spent must be treated as hours worked. On the other hand, breaks of up to 20 minutes for snacks or coffee must be treated as compensable rest periods. Such rest periods are generally thought to benefit the employer by promoting worker efficiency.
What are the requirements for independent contractors reporting (Form DE 542) to the Employment Development Department?
- Who must report. Any business or government entity that is required to file a federal Form 1099-Misc for services performed by an independent contractor.
- When must the information be reported. You must report information to the Employment Development Department within 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.
- What information must be reported. As a business owner, you must report your business' Federal employer identification number, California employer account number and the business name, address and telephone number. You must also report the independent contractor's first and last name, Social Security number, address, start date of contract, amount of contract (including cents), contract expiration date and any ongoing contracts. This information must be included on the Report of Independent Contractors, Form DE 542.
As you see, accounting is a critical component for the success of businesses and individuals alike. To find out how we can help you, contact us today to schedule a free consultation.