14 Feb

2011 CA Environmental Fee – Action Required

Posted at

10:40pm

in

Dear Valued Client,

In 2011, Vensure changed the way that we report and pay state unemployment taxes in California from what is referred to as “PEO reporting” to “Client reporting.” This means, as you already know, that we report and pay state unemployment taxes to the California EDD using your account number and tax rate.

California also imposes an Environmental Fee (nice way of saying “tax”) on businesses or organizations who employed 50 or more employees, for more than 500 hours each, during the calendar year. To determine the amount of the fee, calculate how many individuals were employed for more than 500 hours during the year. For example, if you paid 60 individuals, but only 45 worked more than 500 hours, then you do not owe any fees. The Environmental Fee is administered by the Board of Equalization (“BOE”) and they cross-reference filed returns against the EDD’s database.

As a result, the Environmental Fee return, form 501EF, must be filed and paid under your BOE account number before February 29, 2012. Vensure will provide you with a report showing the number of hours worked by each co-employee no later than February 17, 2012. In order to accurately complete the return, you will need to combine that report with any pre-Vensure hours worked by both co-employees and employees who were terminated prior to becoming our client.

If you don’t already have a BOE account, you will need to complete the application, which can be found at: www.boe.ca.gov/pdf/boe400-efa.pdf.

There is a 3 – 5 business day turn-around time to get your BOE account number, so please complete the registration and fax to the BOE as quickly as possible. The fax number for the BOE is (916) 445-6122.

To access Form 501EF, please visit: www.boe.ca.gov.

If you have questions or need additional information, please contact your CRM or:

Sean Drappo
Tax Specialist
taxes@vensure.com
(800) 409-8958 ext. 1330.

Thank you for being a Vensure client. We appreciate your business and the opportunity to serve you.

Kind regards,

Robert Attridge
V.P. of Operations
Vensure Employer Services