Understanding Multistate Tax Filing: What Business Owners Need to Know

Posted on by AlisaNaCPA

If your business operates across state lines—whether through remote employees, online sales, or physical presence—you’re likely subject to multistate tax filing requirements. As states become more aggressive in enforcing their tax laws, it’s crucial for business owners to understand their obligations to avoid penalties and interest.

What Triggers Tax Filing in Another State?

Each state has its own rules for determining whether your business has nexus, the legal term for a sufficient connection to require tax registration. Nexus can be established by:

  • Having a physical office or store in the state
  • Employing workers or contractors in the state
  • Owning or leasing property (including inventory in a warehouse)
  • Reaching a certain level of sales or transactions (economic nexus)

With the rise of e-commerce and remote work, many businesses unknowingly create nexus in multiple states.

Common Taxes That May Require Multistate Filing

Once nexus is established, your business may be required to register, collect, or file for several types of taxes:

1. State Income Tax

If your company earns income from business activities in a state, you may need to apportion income and file a return in that state—even if you’re based elsewhere. The rules vary depending on whether you’re a pass-through entity, C corporation, or sole proprietor.

2. Sales and Use Tax

After the landmark South Dakota v. Wayfair, Inc. decision, states can require out-of-state sellers to collect sales tax based on sales volume alone. If you sell tangible goods or taxable services online, you may have sales tax nexus in multiple states—even if you have no physical presence there.

3. Payroll Taxes

If you employ remote workers or contractors in another state, you’ll need to comply with local withholding, unemployment insurance, and other employer tax requirements for that jurisdiction.

4. Franchise and Gross Receipts Taxes

Some states impose taxes based on revenue or the mere right to do business in the state, regardless of profit. These include Washington’s Business & Occupation (B&O) Tax, Texas’s Franchise Tax, and Ohio’s Commercial Activity Tax.

How to Stay Compliant

Navigating multistate tax rules can be overwhelming, but a proactive approach can protect your business and support growth:

  • Evaluate where your business has nexus—both physical and economic
  • Register appropriately with each state’s tax authority
  • Track sales thresholds for each state where you operate
  • Maintain accurate records of income, payroll, and business activities by location
  • Work with a tax professional to file the correct forms and apportion income properly

Let’s Simplify Multistate Compliance Together

At Alisa Na CPA, we help businesses of all sizes understand and meet their multistate tax obligations. Whether you’re expanding into a new market or unsure about your current filings, we’ll guide you through the process with clarity and peace of mind.

Precision Matters: Why Your Finances Deserve the Same Attention as Your Patients

Posted on by AlisaNaCPA

For physicians, nurses, therapists, and other healthcare professionals, each day demands sharp focus, accountability, and unwavering commitment. Caring for patients is more than a job—it’s a calling that involves constant judgment and responsibility.

Yet, while many in healthcare dedicate their lives to others’ well-being, their own financial health often takes a back seat. Too often, I’ve seen busy professionals delay planning or assume financial matters will sort themselves out later. Unfortunately, inaction can be costly.

Over the years, I’ve had the privilege of advising healthcare professionals across a variety of settings. One thing is clear: your financial decisions extend well beyond the exam room—and the sooner they’re addressed with the same precision as your clinical work, the better your outcomes will be.

Medicine Is Science. Finance Is Strategy.

The income structure of medical professionals differs significantly from that of the average salaried employee. Even hospital-based providers with fixed salaries may receive additional income from lectures, consulting, research participation, or stipends for academic involvement. Private practice owners face even more complexity—with revenue tied to clinical income, real estate holdings, equipment leases, partner agreements, and more.

What complicates matters further is how this income is taxed. It’s common for healthcare professionals to be automatically categorized as high-income earners and taxed accordingly, without consideration for the nuance of their financial structure.

Here’s what matters: Income should not be viewed simply in dollar terms—it must be evaluated in terms of structure.

For example, the way you structure your practice—whether as a sole proprietorship, S-Corporation, or PLLC—can significantly impact your tax liability and long-term wealth. Two physicians with identical incomes may face very different outcomes depending on how their finances are organized.

The difference isn’t just what you know. It’s how—and when—you apply that knowledge.

Common Financial Mistakes Among Healthcare Professionals

Despite high earning potential, many healthcare professionals face avoidable financial pitfalls. The three I see most often:

1. Lack of Expense Awareness

Busy schedules leave little time to track spending or review budgets. As a result, income may be high, but end-of-year cash flow is unclear, and financial decisions are made reactively.

2. No Asset Protection Planning

Professionals working in medicine face inherent legal risk. Yet many retain all assets in their personal name—without the protection of a trust, family LLC, or tailored asset-diversification plan.

3. Delayed Retirement Planning

It’s common to hear: “I’ll catch up later.” But with access to advanced retirement vehicles like Defined Benefit Plans and Cash Balance Plans, healthcare professionals have powerful options—if started early. Waiting often means missed tax advantages and diminished compounding potential.

A CPA’s Role: Beyond Tax Filing

Many view CPAs as simply tax preparers. But in my practice, I approach accounting as much more:
a strategic partner helping professionals design the financial architecture of their lives.

Whether you’re preparing to launch a clinic, reviewing a lease agreement, evaluating partner contracts, or planning for retirement, the decisions you make today can have lasting implications. My goal is to guide you through those decisions with clarity, insight, and long-term vision.

As a healthcare professional, you are trained to approach every diagnosis with precision, thoroughness, and care. I believe your finances deserve the same.

Let’s design a structure that reflects not just your current needs—but your future goals, your family, and your legacy.

2025년 2분기 워싱턴주 판매세율 변경

Posted on by AlisaNaCPA
Notification from Washington Department of Revenue: 2025년 2분기 워싱턴주 판매세율 변경이 있습니다. 2025년 2분기 업데이트는 아래의 Sales Tax Rate Tools 를 통해 자세히 보실수 있습니다.

Local sales tax rate changes in the following areas beginning January 1st, 2025:
로컬 세일즈 판매 및 사용세 변경 공지

Motor vehicle tax rates

Motor vehicle rate change notices

로컬 위치코드 및 세율의 전체 목록은 아래의 웹 사이트에서 확인할 수 있습니다:
Local sales & use tax | Washington Department of Revenue

2025 Minimum Wage Resources

  • Washington State (LINK): 워싱턴주 노동산업부(L&I)는 2025년 1월 1일부터 워싱턴주의 최저 임금을 시간당 $16.66로 인상한다고 발표했습니다.
  • Seattle (LINK): 2025년 1월 1일부터 모든 고용주는 사업 규모에 관계없이 시간당 $20.76의 동일한 최저 임금을 지불해야 합니다. 소규모 고용주는 더 이상 시애틀의 최저 임금 조례에 따른 직원의 최소 보상 요건에 대해 직원의 의료 혜택 플랜에 대한 팁 및/또는 지불금을 계산할 수 없습니다.
  • Bellingham (LINK): 2025년 1월 1일부터 벨링햄시 최저 임금은 워싱턴 주 최저 임금보다 $1.00 높은 $17.66 입니다. 2025년 5월 1일부터 시 최저 임금은 해당 워싱턴 주 최저 임금보다 $2.00 높습니다.
    이후 매년 2026년부터 시 최저 임금은 매년 1월 1일부터 적용되는 워싱턴 주 최저 임금보다 $2.00 높은 금액으로 설정됩니다. 시는 새로운 주 최저 임금이 발표된 후 2주 이내에 시 최저 임금을 확정할 것입니다.
  • Burien (LINK): 20명 이하의 정규직 근로자(FTE)를 보유한 고용주는 이 조례에서 면제됩니다.

    • “레벨 1 고용주”는 킹 카운티에서 500명 이상의 FTE를 고용하는 프랜차이즈 가맹점을 포함한 모든 고용주 또는 총 500명 이상의 FTE를 고용하는 프랜차이즈 가맹점을 의미합니다. 2025년 1월 1일 오전 12시 1분부터 레벨 1 고용주는 각 직원에게 워싱턴 주 시간당 최저 임금보다 최소 $4.50의 높은 시간당 최저 임금을 지불해야 합니다.
    • “레벨 2 고용주”는 프랜차이즈 가맹점을 포함하여 킹 카운티에서 21 – 499명의 FTE를 고용하는 모든 고용주를 의미합니다. 2025년 7월 1일 오전 12시 1분부터 레벨 2 고용주는 각 직원에게 워싱턴 주 시간당 최저 임금보다 최소 $3.50 높은 시간당 최저 임금을 지불해야 합니다.
    • “레벨 3 고용주”는 FTE가 20명 이하인 모든 고용주를 의미합니다. FTE가 20명 이하인 고용주는 이 조례에서 면제됩니다.
  • Everett (LINK): 2025년 7월 1일부터 시행됩니다. 워싱턴에 500명 이상의 직원이 있는 고용주의 경우 $20.24/시간, 15명과 500명 사이의 직원을 가진 고용주의 경우 $18.24/시간입니다. 직원이 14명 이하인 고용주는 영향을 받지 않습니다.
  • King County (unincorporated) (LINK): 2025년 1월 1일부터 킹 카운티의 unincorporated 지역의 최저 시급은 $20.29입니다.

    사업 규모와 총 수익에 따라 세 가지 일시적인 예외가 있습니다. 귀하의 사업장이 이 관할권에 속하는지 여부는 ArcGIS Web Application웹 응용프로그램에 사업장 주소를 입력하여 확인하십시오.
  • Renton (LINK): 적용 대상 고용주는 시에서 근무한 시간에 대해 직원에게 다음과 같은 최저 시급 이상을 지급해야 합니다:

    위에서 설명한 대기업 또는 중견 규모 고용주에 속하지 않는 고용주는 새로운 최저 임금 요율의 적용을 받지 않지만 워싱턴 주 최저 임금 요건을 계속 충족해야 합니다.
  • SeaTac (LINK): 2025년 최저 임금: 시간당 $20.17. 생활임금 상승률(2.35%)은 미국 노동부가 계산한 9월 1일 이전 12개월 동안의 도시 임금 근로자 및 사무직 근로자 소비자 물가지수(CPIW)를 사용하여 계산되었습니다. 따라서 SeaTac Municipal Code(SMC) 섹션 7.45.050에 따라 시 내 접객 및 운송 직원에게 적용되는 생활 임금은 2025년 1월 1일부터 $20.17로 인상됩니다.
  • Tukwila (LINK): 2025년 1월 1일부터 Tukwila 최저 시간당 임금은 다음과 같습니다:

    2025년 7월 1일부터 중간 규모 고용주는 최저 임금을, 대규모 고용주 최저 시간당 임금 $21.10와 동일하게 인상해야 합니다. 그리고 이후로 중간 규모 고용주의 최저 임금은 대규모 고용주 요율과 동일합니다.

The Quarter 2, 2025, Washington State sales tax rate changes

Posted on by AlisaNaCPA
Quarter 2, 2025 Update — Sales Tax Rate Tools
The Quarter 2, 2025, Washington State sales tax rate changes are now available.

Local sales tax rate changes in the following areas beginning January 1st, 2025:
Local sales & use tax change notices

Motor vehicle tax rates

Motor vehicle rate change notices

A complete list of location codes and tax rates can be found  here on the website.

2025 Minimum Wage Resources

  • Washington State (LINK): The Washington State Department of Labor & Industries (L&I) announced an increase in the state’s minimum wage to $16.66 per hour, effective on January 1, 2025.
  • Seattle (LINK): Starting January 1, 2025, all employers, regardless of schedule size, will be required to pay the same minimum wage of $20.76 per hour. Small employers will no longer be able to count tips and/or payments toward an employee’s medical benefit plan toward an employee’s minimum compensation requirements under Seattle’s Minimum Wage Ordinance.
  • Bellingham (LINK): On January 1, 2025, the city minimum wage will be set at $1.00 above the applicable Washington State minimum wage ($17.66). Starting May 1, 2025, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage. Every year after, starting in 2026, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage, effective on January 1 every year. The city will establish the city minimum wage within two weeks of the publication of the new state minimum wage.
  • Burien (LINK): Employers with 20 or fewer full-time equivalents (FTEs) are exempt from the ordinance.

    • “Level 1 employer” means all employers, including franchisees, that employ 500 or more FTEs in King County or franchisors who employ 500 or more FTEs in the aggregate. Effective January 1, 2025 at 12:01 a.m., Level 1 employers shall pay each employee an hourly minimum wage of at least $4.50 over the Washington State hourly minimum wage.
    • “Level 2 employer” means all employers, including franchisees, that employ 21 – 499 FTEs in King County. Effective July 1, 2025 at 12:01 a.m., Level 2 employers shall pay each employee an hourly minimum wage of at least $3.50 over the Washington State hourly minimum wage.
    • “Level 3 employer” means all employers with 20 or fewer FTEs. Employers with 20 or fewer FTEs are exempt from this ordinance.
  • Everett (LINK): Effective July 1, 2025. $20.24/hour for employers with more than 500 employees in Washington and $18.24 for employers with between 15 and 500 employees. Employers with 14 or fewer employees are not to be affected.
  • King County (unincorporated) (LINK): On January 1, 2025, the minimum hourly wage in unincorporated King County will be $20.29.

    There will be three temporary exceptions, based on business size and gross revenue. Please check whether or not your business falls under this jurisdiction by entering your business address here:  ArcGIS Web Application.
  • Renton (LINK): Covered employers will be required to pay a new higher minimum wage for hours worked in the City. Covered employers are required to pay employees not less than the minimum hourly wage as follows:

    Employers that do not fall within the Large or Mid-Size Employer described above are not covered by the new minimum wage rates but must continue to meet the State of Washington minimum wage requirements.
  • SeaTac (LINK): 2025 Minimum Wage: $20.17 per hour The increase in the living wage rate (2.35%) has been calculated using the consumer price index for urban wage earners and clerical workers, (CPIW) for the twelve (12) months prior to September 1 as calculated by the United States Department of Labor. Therefore, in accordance with SeaTac Municipal Code (SMC) Section 7.45.050, the living wage rate in effect for hospitality and transportation employees within the City will increase to $20.17, effective January 1, 2025.
  • Tukwila (LINK): Effective January 1st, 2025, Tukwila Minimum Wage hourly rates will be:

    (On  July 1st, 2025, mid-size employers are required to increase their minimum wage rate to equal the large employer rate of $21.10) Going forward, mid-size employer minimum wage will be the same as the large employer rate.

2025년 1분기 워싱턴주 판매세율 변경

Posted on by AlisaNaCPA
Notification from Washington Department of Revenue: 2025년 1분기 워싱턴주 판매세율 변경이 있습니다. 2025년 1분기 업데이트는 아래의 Sales Tax Rate Tools 를 통해 자세히 보실수 있습니다.

Local sales tax rate changes in the following areas beginning January 1st, 2025:
로컬 세일즈 판매 및 사용세 변경 공지

숙박 요금 판매세율 변경 공지

로컬 위치코드 및 세율의 전체 목록은 아래의 웹 사이트에서 확인할 수 있습니다:
Local sales & use tax | Washington Department of Revenue

2025 Minimum Wage Resources

  • Washington State (LINK): 워싱턴주 노동산업부(L&I)는 2025년 1월 1일부터 워싱턴주의 최저 임금을 시간당 $16.66로 인상한다고 발표했습니다.
  • Seattle (LINK): 2025년 1월 1일부터 모든 고용주는 사업 규모에 관계없이 시간당 $20.76의 동일한 최저 임금을 지불해야 합니다. 소규모 고용주는 더 이상 시애틀의 최저 임금 조례에 따른 직원의 최소 보상 요건에 대해 직원의 의료 혜택 플랜에 대한 팁 및/또는 지불금을 계산할 수 없습니다.
  • Bellingham (LINK): 2025년 1월 1일부터 벨링햄시 최저 임금은 워싱턴 주 최저 임금보다 $1.00 높은 $17.66 입니다. 2025년 5월 1일부터 시 최저 임금은 해당 워싱턴 주 최저 임금보다 $2.00 높습니다.
    이후 매년 2026년부터 시 최저 임금은 매년 1월 1일부터 적용되는 워싱턴 주 최저 임금보다 $2.00 높은 금액으로 설정됩니다. 시는 새로운 주 최저 임금이 발표된 후 2주 이내에 시 최저 임금을 확정할 것입니다.
  • Burien (LINK): 20명 이하의 정규직 근로자(FTE)를 보유한 고용주는 이 조례에서 면제됩니다.

    • “레벨 1 고용주”는 킹 카운티에서 500명 이상의 FTE를 고용하는 프랜차이즈 가맹점을 포함한 모든 고용주 또는 총 500명 이상의 FTE를 고용하는 프랜차이즈 가맹점을 의미합니다. 2025년 1월 1일 오전 12시 1분부터 레벨 1 고용주는 각 직원에게 워싱턴 주 시간당 최저 임금보다 최소 $4.50의 높은 시간당 최저 임금을 지불해야 합니다.
    • “레벨 2 고용주”는 프랜차이즈 가맹점을 포함하여 킹 카운티에서 21 – 499명의 FTE를 고용하는 모든 고용주를 의미합니다. 2025년 7월 1일 오전 12시 1분부터 레벨 2 고용주는 각 직원에게 워싱턴 주 시간당 최저 임금보다 최소 $3.50 높은 시간당 최저 임금을 지불해야 합니다.
    • “레벨 3 고용주”는 FTE가 20명 이하인 모든 고용주를 의미합니다. FTE가 20명 이하인 고용주는 이 조례에서 면제됩니다.
  • Everett (LINK): 2025년 7월 1일부터 시행됩니다. 워싱턴에 500명 이상의 직원이 있는 고용주의 경우 $20.24/시간, 15명과 500명 사이의 직원을 가진 고용주의 경우 $18.24/시간입니다. 직원이 14명 이하인 고용주는 영향을 받지 않습니다.
  • King County (unincorporated) (LINK): 2025년 1월 1일부터 킹 카운티의 unincorporated 지역의 최저 시급은 $20.29입니다.

    사업 규모와 총 수익에 따라 세 가지 일시적인 예외가 있습니다. 귀하의 사업장이 이 관할권에 속하는지 여부는 ArcGIS Web Application웹 응용프로그램에 사업장 주소를 입력하여 확인하십시오.
  • Renton (LINK): 적용 대상 고용주는 시에서 근무한 시간에 대해 직원에게 다음과 같은 최저 시급 이상을 지급해야 합니다:

    위에서 설명한 대기업 또는 중견 규모 고용주에 속하지 않는 고용주는 새로운 최저 임금 요율의 적용을 받지 않지만 워싱턴 주 최저 임금 요건을 계속 충족해야 합니다.
  • SeaTac (LINK): 2025년 최저 임금: 시간당 $20.17. 생활임금 상승률(2.35%)은 미국 노동부가 계산한 9월 1일 이전 12개월 동안의 도시 임금 근로자 및 사무직 근로자 소비자 물가지수(CPIW)를 사용하여 계산되었습니다. 따라서 SeaTac Municipal Code(SMC) 섹션 7.45.050에 따라 시 내 접객 및 운송 직원에게 적용되는 생활 임금은 2025년 1월 1일부터 $20.17로 인상됩니다.
  • Tukwila (LINK): 2025년 1월 1일부터 Tukwila 최저 시간당 임금은 다음과 같습니다:

    2025년 7월 1일부터 중간 규모 고용주는 최저 임금을, 대규모 고용주 최저 시간당 임금 $21.10와 동일하게 인상해야 합니다. 그리고 이후로 중간 규모 고용주의 최저 임금은 대규모 고용주 요율과 동일합니다.

The Quarter 1, 2025, Washington State sales tax rate changes

Posted on by AlisaNaCPA
Quarter 1, 2025 Update — Sales Tax Rate Tools
The Quarter 1, 2025, Washington State sales tax rate changes are now available.

Local sales tax rate changes in the following areas beginning January 1st, 2025:
Local sales & use tax change notices

Lodging rate change notices

A complete list of location codes and tax rates can be found  here on the website.

2025 Minimum Wage Resources

  • Washington State (LINK): The Washington State Department of Labor & Industries (L&I) announced an increase in the state’s minimum wage to $16.66 per hour, effective on January 1, 2025.
  • Seattle (LINK): Starting January 1, 2025, all employers, regardless of schedule size, will be required to pay the same minimum wage of $20.76 per hour. Small employers will no longer be able to count tips and/or payments toward an employee’s medical benefit plan toward an employee’s minimum compensation requirements under Seattle’s Minimum Wage Ordinance.
  • Bellingham (LINK): On January 1, 2025, the city minimum wage will be set at $1.00 above the applicable Washington State minimum wage ($17.66). Starting May 1, 2025, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage. Every year after, starting in 2026, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage, effective on January 1 every year. The city will establish the city minimum wage within two weeks of the publication of the new state minimum wage.
  • Burien (LINK): Employers with 20 or fewer full-time equivalents (FTEs) are exempt from the ordinance.

    • “Level 1 employer” means all employers, including franchisees, that employ 500 or more FTEs in King County or franchisors who employ 500 or more FTEs in the aggregate. Effective January 1, 2025 at 12:01 a.m., Level 1 employers shall pay each employee an hourly minimum wage of at least $4.50 over the Washington State hourly minimum wage.
    • “Level 2 employer” means all employers, including franchisees, that employ 21 – 499 FTEs in King County. Effective July 1, 2025 at 12:01 a.m., Level 2 employers shall pay each employee an hourly minimum wage of at least $3.50 over the Washington State hourly minimum wage.
    • “Level 3 employer” means all employers with 20 or fewer FTEs. Employers with 20 or fewer FTEs are exempt from this ordinance.
  • Everett (LINK): Effective July 1, 2025. $20.24/hour for employers with more than 500 employees in Washington and $18.24 for employers with between 15 and 500 employees. Employers with 14 or fewer employees are not to be affected.
  • King County (unincorporated) (LINK): On January 1, 2025, the minimum hourly wage in unincorporated King County will be $20.29.

    There will be three temporary exceptions, based on business size and gross revenue. Please check whether or not your business falls under this jurisdiction by entering your business address here:  ArcGIS Web Application.
  • Renton (LINK): Covered employers will be required to pay a new higher minimum wage for hours worked in the City. Covered employers are required to pay employees not less than the minimum hourly wage as follows:

    Employers that do not fall within the Large or Mid-Size Employer described above are not covered by the new minimum wage rates but must continue to meet the State of Washington minimum wage requirements.
  • SeaTac (LINK): 2025 Minimum Wage: $20.17 per hour The increase in the living wage rate (2.35%) has been calculated using the consumer price index for urban wage earners and clerical workers, (CPIW) for the twelve (12) months prior to September 1 as calculated by the United States Department of Labor. Therefore, in accordance with SeaTac Municipal Code (SMC) Section 7.45.050, the living wage rate in effect for hospitality and transportation employees within the City will increase to $20.17, effective January 1, 2025.
  • Tukwila (LINK): Effective January 1st, 2025, Tukwila Minimum Wage hourly rates will be:

    (On  July 1st, 2025, mid-size employers are required to increase their minimum wage rate to equal the large employer rate of $21.10) Going forward, mid-size employer minimum wage will be the same as the large employer rate.

2025-03 Reminder: Combined Excise Tax Filing Due

Posted on by AlisaNaCPA
Summary Read:
A reminder that the deadline for filing the February 2025 Washington State combined excise tax return is approaching. Businesses should submit their sales information by March 20, 2025, to avoid late filing. Also included are recent updates to local sales tax rates effective January 1, 2025, and changes to state and city minimum wages.

This is a friendly reminder that the due date to file the February 2025 Washington State Department of Revenue excise tax return is approaching.

If you have not provided the information to our office yet, please send us your February* sales (or Quarter sales for Quarterly fliers and Annual sales for Annual fliers) information by Thursday morning (03/20/25) to ensure timely filing.
Notification from Washington Department of Revenue:

Quarter 1, 2025 Update — Sales Tax Rate Tools

The Quarter 1, 2025, Washington State sales tax rate changes are now available.
Local sales tax rate changes in the following areas beginning January 1st, 2025:

Local sales & use tax change notices

Lodging rate change notices

A complete list of location codes and tax rates can be found here on the website.
2025 Minimum Wage Resources

Washington State: https://www.lni.wa.gov/news-events/article/24-24

The Washington State Department of Labor & Industries (L&I) announced an increase in the state’s minimum wage to $16.66 per hour, effective on January 1, 2025.

Seattle: https://www.seattle.gov/laborstandards/ordinances/minimum-wage?utm_medium=email&utm_source=govdelivery

Starting January 1, 2025, all employers, regardless of schedule size, will be required to pay the same minimum wage of $20.76 per hour. Small employers will no longer be able to count tips and/or payments toward an employee’s medical benefit plan toward an employee’s minimum compensation requirements under Seattle’s Minimum Wage Ordinance.

Bellingham: https://cob.org/services/business/city-minimum-wage

On January 1, 2025, the city minimum wage will be set at $1.00 above the applicable Washington State minimum wage ($17.66).

Starting May 1, 2025, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage.

Every year after, starting in 2026, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage, effective on January 1 every year. The city will establish the city minimum wage within two weeks of the publication of the new state minimum wage.

Burien: https://www.burienwa.gov/city_hall/laws_regulations/minimum_wage

Employers with 20 or fewer full-time equivalents (FTEs) are exempt from the ordinance.

“Level 1 employer” means all employers, including franchisees, that employ 500 or more FTEs in King County or franchisors who employ 500 or more FTEs in the aggregate. Effective January 1, 2025 at 12:01 a.m., Level 1 employers shall pay each employee an hourly minimum wage of at least $4.50 over the Washington State hourly minimum wage.

“Level 2 employer” means all employers, including franchisees, that employ 21 – 499 FTEs in King County. Effective July 1, 2025 at 12:01 a.m., Level 2 employers shall pay each employee an hourly minimum wage of at least $3.50 over the Washington State hourly minimum wage.

“Level 3 employer” means all employers with 20 or fewer FTEs. Employers with 20 or fewer FTEs are exempt from this ordinance.

Everett: Local Minimum Wage Rates

Effective July 1, 2025. $20.24/hour for employers with more than 500 employees in Washington and $18.24 for employers with between 15 and 500 employees. Employers with 14 or fewer employees are not to be affected.

King County (unincorporated): Minimum wage in unincorporated King County – King County, Washington

On January 1, 2025, the minimum hourly wage in unincorporated King County will be $20.29.
There will be three temporary exceptions, based on business size and gross revenue.

Please check whether or not your business falls under this jurisdiction by entering your business address here: ArcGIS Web Application.

Renton: https://www.rentonwa.gov/city_hall/finance/2024_labor_standards

Covered employers will be required to pay a new higher minimum wage for hours worked in the City. Covered employers are required to pay employees not less than the minimum hourly wage as follows:
Employers that do not fall within the Large or Mid-Size Employer described above are not covered by the new minimum wage rates but must continue to meet the State of Washington minimum wage requirements.
SeaTac: https://www.seatacwa.gov/home/showpublisheddocument/38011/638634620180370000

2025 Minimum Wage: $20.17 per hour

The increase in the living wage rate (2.35%) has been calculated using the consumer price index for urban wage earners and clerical workers, (CPIW) for the twelve (12) months prior to September 1 as calculated by the United States Department of Labor. Therefore, in accordance with SeaTac Municipal Code (SMC) Section 7.45.050, the living wage rate in effect for hospitality and transportation employees within the City will increase to $20.17, effective January 1, 2025.

 

Tukwila: https://www.tukwilawa.gov/departments/finance/minimum-wage-and-fair-access-to-additional-hours-of-work/

Effective January 1st, 2025, Tukwila Minimum Wage hourly rates will be:
(On July 1st, 2025, mid-size employers are required to increase their minimum wage rate to equal the large employer rate of $21.10) Going forward, mid-size employer minimum wage will be the same as the large employer rate.

If you have questions, be sure to reach out to us.

Sincerely,

ALISA NA CPAs & Advisors

Important Due Dates & Tax Supporting Documents are Due

Posted on by AlisaNaCPA
Summary Read
2024 tax filing deadlines are quickly approaching! To ensure timely filing, please upload your tax documents to our secure client portal by the following dates:

  • Partnerships (Form 1065) and S Corporations (Form 1120S): February 15, 2025
  • Individuals (Form 1040 and FBAR filings) and C Corporations (Form 1120): March 15, 2025

Keep in mind that penalties and interest may apply if taxes owed are not paid by the original IRS due dates. For further assistance or to request an extension, please contact our office.

Dear Clients, 

To ensure timely preparation of your tax return, please contact our office for your client organizer as soon as possible.

Please upload your 2024 tax documents to our secure portal by the deadlines listed below.
*If you have not yet submitted tax source documents for Partnership and S Corporation tax returns by February 15th, please contact us to request an extension. 

If you are unable to upload your documents by the deadlines mentioned above, please contact our office to request an extension. However, please note that if you have a tax liability, late payment penalties and interest may begin to accrue from the original due date, even if an extension is filed.

To assist with your tax preparation, we have prepared a personalized client organizer for you. This includes a set of questions to help us identify any changes that may impact on your tax return, as well as a record of documents you have previously submitted.

If you would like to receive this organizer, please contact us via email or phone, and we will be happy to provide it.

Once all your tax source documents are ready, please upload them to our secure portal and notify us by email or phone to confirm receipt. Please note that we can only begin preparing your tax return after all required documents have been received.

For the 2024 Tax Prep Checklist, Tax Preparation Workflow Information, and a secure upload link, please go to Income Tax Preparation Process page.

Should you have any questions, please feel free to reach out. Our team is available to assist and support you.

2025-02 Reminder: Combined Excise Tax Filing Due

Posted on by AlisaNaCPA
Summary Read:
A reminder that the deadline for filing the January 2025 Washington State combined excise tax return is approaching. Businesses should submit their sales information by February 18, 2025, to avoid late filing. Also included are recent updates to local sales tax rates effective January 1, 2025, and changes to state and city minimum wages.

This is a friendly reminder that the due date to file the January 2025 Washington State Department of Revenue excise tax return is approaching.

If you have not provided the information to our office yet, please send us your January* sales (or Quarter sales for Quarterly fliers and Annual sales for Annual fliers) information by Tuesday morning (02/18/25) to ensure timely filing.
Notification from Washington Department of Revenue:

Quarter 1, 2025 Update — Sales Tax Rate Tools

The Quarter 1, 2025, Washington State sales tax rate changes are now available.
Local sales tax rate changes in the following areas beginning January 1st, 2025:

Local sales & use tax change notices

Lodging rate change notices

A complete list of location codes and tax rates can be found here on the website.
2025 Minimum Wage Resources

Washington State: https://www.lni.wa.gov/news-events/article/24-24

The Washington State Department of Labor & Industries (L&I) announced an increase in the state’s minimum wage to $16.66 per hour, effective on January 1, 2025.

Seattle: https://www.seattle.gov/laborstandards/ordinances/minimum-wage?utm_medium=email&utm_source=govdelivery

Starting January 1, 2025, all employers, regardless of schedule size, will be required to pay the same minimum wage of $20.76 per hour. Small employers will no longer be able to count tips and/or payments toward an employee’s medical benefit plan toward an employee’s minimum compensation requirements under Seattle’s Minimum Wage Ordinance.

Bellingham: https://cob.org/services/business/city-minimum-wage

On January 1, 2025, the city minimum wage will be set at $1.00 above the applicable Washington State minimum wage ($17.66).

Starting May 1, 2025, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage.

Every year after, starting in 2026, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage, effective on January 1 every year. The city will establish the city minimum wage within two weeks of the publication of the new state minimum wage.

Burien: https://www.burienwa.gov/city_hall/laws_regulations/minimum_wage

Employers with 20 or fewer full-time equivalents (FTEs) are exempt from the ordinance.

“Level 1 employer” means all employers, including franchisees, that employ 500 or more FTEs in King County or franchisors who employ 500 or more FTEs in the aggregate. Effective January 1, 2025 at 12:01 a.m., Level 1 employers shall pay each employee an hourly minimum wage of at least $4.50 over the Washington State hourly minimum wage.

“Level 2 employer” means all employers, including franchisees, that employ 21 – 499 FTEs in King County. Effective July 1, 2025 at 12:01 a.m., Level 2 employers shall pay each employee an hourly minimum wage of at least $3.50 over the Washington State hourly minimum wage.

“Level 3 employer” means all employers with 20 or fewer FTEs. Employers with 20 or fewer FTEs are exempt from this ordinance.

Everett: Local Minimum Wage Rates

Effective July 1, 2025. $20.24/hour for employers with more than 500 employees in Washington and $18.24 for employers with between 15 and 500 employees. Employers with 14 or fewer employees are not to be affected.

King County (unincorporated): Minimum wage in unincorporated King County – King County, Washington

On January 1, 2025, the minimum hourly wage in unincorporated King County will be $20.29.
There will be three temporary exceptions, based on business size and gross revenue.

Please check whether or not your business falls under this jurisdiction by entering your business address here: ArcGIS Web Application.

Renton: https://www.rentonwa.gov/city_hall/finance/2024_labor_standards

Covered employers will be required to pay a new higher minimum wage for hours worked in the City. Covered employers are required to pay employees not less than the minimum hourly wage as follows:
Employers that do not fall within the Large or Mid-Size Employer described above are not covered by the new minimum wage rates but must continue to meet the State of Washington minimum wage requirements.
SeaTac: https://www.seatacwa.gov/home/showpublisheddocument/38011/638634620180370000

2025 Minimum Wage: $20.17 per hour

The increase in the living wage rate (2.35%) has been calculated using the consumer price index for urban wage earners and clerical workers, (CPIW) for the twelve (12) months prior to September 1 as calculated by the United States Department of Labor. Therefore, in accordance with SeaTac Municipal Code (SMC) Section 7.45.050, the living wage rate in effect for hospitality and transportation employees within the City will increase to $20.17, effective January 1, 2025.

 

Tukwila: https://www.tukwilawa.gov/departments/finance/minimum-wage-and-fair-access-to-additional-hours-of-work/

Effective January 1st, 2025, Tukwila Minimum Wage hourly rates will be:
(On July 1st, 2025, mid-size employers are required to increase their minimum wage rate to equal the large employer rate of $21.10) Going forward, mid-size employer minimum wage will be the same as the large employer rate.

If you have questions, be sure to reach out to us.

Sincerely,

ALISA NA CPAs & Advisors

2024-12 Preparing for 2024 Tax Filing: Essential tips and Key Tax update

Posted on by AlisaNaCPA

Happy Holidays from Alisa Na CPAs and Advisors!

With 2025 approaching, we want to share essential tips for our individual and business clients.

The Internal Revenue Service encouraged taxpayers to take key steps now to prepare for filing their 2024 federal income tax returns next year. There are several things’ taxpayers can do to get ready as the end of 2024 nears and the start of the 2025 tax season approaches.

Gather and organize 2024 tax documents

To make tax time easier, taxpayers should establish an adequate record-keeping system, either electronic or paper, to organize all essential documents in one place. This includes year-end income forms such as Forms W-2 from employers, Forms 1099 from banks or other payers, Forms 1099-K from third-party payment networks, Forms 1099-NEC for nonemployee compensation, Forms 1099-MISC for miscellaneous income, Forms 1099-INT for interest income and records of all digital asset transactions.

Having all necessary documentation ensures taxpayers can file an accurate return and reduces the likelihood of processing delays or refund issues.

Please download our 2024 Tax Prep Checklist to help you gather and organize your 2024 Individual Tax documents. We also have a Tax Organizer for Small Business (Sch. C) and Rental Property (Sch. E).

IRS Online Account

Individuals can create or access their IRS Online Account at Online account for individuals. Currently, the IRS Online Account is not available for Business accounts. With an IRS Online Account, you can:

  • View, make, and cancel payments.
  • Set up or change payment plans and check their balance.
  • View key details from their most recent tax return, such as adjusted gross income.
  • Request an Identity Protection PIN.
  • Get account transcripts to include wage and income records.
  • Sign tax forms like powers of attorney or tax information authorizations.

Get an Identity Protection Personal Identification Number (IP PIN)

An IP PIN is a six-digit number that prevents someone else from filing a federal tax return using an individual’s Social Security number or Individual Taxpayer Identification Number. It’s a vital tool for ensuring the safety of taxpayers’ personal and financial information.

The best way to sign up for an IP PIN is through the IRS Online Account. If an individual cannot create an Online Account, alternative methods, such as in-person authentication at a Taxpayer Assistance Center, are available.

Deadline for 2024 last quarterly estimated payment is Jan. 15, 2025

Taxpayers with non-wage income—such as unemployment benefits, self-employment income, annuity payments, or earnings from digital assets—may need to make estimated or additional tax payments. The Tax Withholding Estimator on IRS.gov can help wage earners determine if they need to make an additional payment to avoid an unexpected tax bill when filing their return.

Prepare to include digital assets on taxes in 2025

Like previous filing years, taxpayers must report all digital asset-related income when they file their 2024 federal income tax return.

When filing 2024 federal income tax returns, taxpayers will be asked to answer “Yes” or “No” to the following question:

“At any time during the tax year, did you:(a) receive (as a reward, award or payment for property or services); or (b) sell, exchange or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”

Taxpayers who answer “Yes” must report all income related to their digital asset transactions.

Be sure to keep records that prove their purchase, receipt, sale, exchange, or any other disposition of the digital assets, and that includes the fair market value, as measured in U.S. dollars, of all digital assets received as income or as a payment in the ordinary course of a trade or business. Information on how to report digital asset transactions, including calculating capital gain or loss, determining basis, and reporting the income on the correct form, can also be found on the digital assets landing page.

Understand refund timing and how to avoid delays

Several factors can influence the timing of a refund after the IRS receives a tax return. While the IRS issues most refunds in less than 21 days, taxpayers are advised not to depend on receiving a 2024 federal tax refund by a specific date. Some returns may require additional review and take longer to process if there are possible errors, missing information, or indications of identity theft or fraud.

Additionally, under the PATH Act, the IRS cannot issue refunds for tax returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before mid-February.

Use direct deposit for a faster refund

Filing electronically and selecting direct deposit remains the fastest and safest way for taxpayers to receive their 2024 tax refunds. Direct deposit ensures quicker access to refunds compared to receiving a paper check. Please provide the most updated bank account information to your tax preparer for a faster refund.

Key Tax Updates

  • Washington’s Long Term Capital Gain Tax – Washington’s Long Term Capital Gain Tax of 7% is due on April 15, 2025, for long-term gains greater than $270,000 (except for real estate and several other circumstances).  There are penalties for not paying in April.  Please get in touch with us in February if you would like to schedule a consultation regarding this. For more detail, please click here to visit the Department of Revenue’s page.
  • The child tax credit – The child tax credit is $2,000 for dependent children under 17 (The refundable portion of the child tax credit is $1,700).  You qualify for the full 2024 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 for a single return ($400,000 if filing a joint return).
  • IRS gift exclusion – The IRS gift exclusion is $18,000 in 2024 and $19,000 in 2025, respectively.  Gifts above these amounts should be reported on the gift tax return.
  • Federal lifetime gift and estate tax – As of January 1, 2024, the federal lifetime gift, estate, and GST tax exemption amount increased to $13,610,000 per person.
  • Educator Credit – You can deduct up to $300 of unreimbursed classroom expenses if you are an eligible educator. If both spouses are educators and file jointly, they can deduct up to $600 (with each individual capped at $300).
  • Interest Rate – Due to inflation, the underpayment or late interest rate for individual taxpayers will increase to 8% in 2024. Please consider making estimated payments by April 15th, even if you request an extension to file your tax return.
  • Social Security benefit and wage base – Social Security benefits will increase by 2.5% beginning in 2025. Social Security wage base will increase to $176,100 in 2025.
  • IRS Business Mileage rate – The IRS standard mileage rates are 67 cents per mile for business purposes in 2024 and 70 cents per mile beginning Jan. 1, 2025. Standard mileage rates | Internal Revenue Service
  • Form 1099-K – Taxpayers who received over $5,000 ($2,500 in 2025 and $600 in calendar year 2026 and thereafter) in payments for goods and services through an online marketplace or payment app in 2024 should expect to receive a Form 1099-K in January 2025. However, they can send you a Form 1099-K with lower amounts. Although the IRS is taking a phased approach to implementing the Form 1099-K reporting threshold, companies could still send the form for over $600. Whether or not you receive a Form 1099-K, you must still report any income on your tax return.
  • Student Loan Forgiveness – Student Loan Forgiveness will not be taxable on Federal returns but may be taxable in some states.
  • Charitable contributions – We recommend obtaining receipts for all charitable contributions. For more details, please check IRS website: Charitable contribution deductions | Internal Revenue Service
  • EV credit – In 2025, you can get a tax credit for electric vehicles (EVs) tax credit of up to $7,500 for a new EV or $4,000 for a used EV. New EV credit is divided into two parts: $3,750 for meeting battery part requirements and $3,750 for meeting critical minerals requirements. Vehicles that satisfy both conditions are eligible for the full $7,500 credit. The income limits for the EV credit are $300,000 for married filing jointly and $150,000 for Single filers.
  • Home energy credit – If you make qualified energy-efficient improvements to your home after Jan. 1, 2023, you may qualify for a tax credit of up to $3,200. You can claim credit for improvements made through 2032. The maximum credit you can claim each year is:
    • $1,200 for energy-efficient property costs and specific energy efficient home improvements, with limits on exterior doors ($250 per door and $500 total), exterior windows and skylights ($600), and home energy audits ($150).
    • $2,000 per year for qualified heat pumps, water heaters, biomass stoves, or biomass boilers.
  • The Maximum Retirement contributions for 2024
    • $7,000 for Traditional IRA or Roth IRAs ($8,000 if you are age 50 or older)
    • $16,000 for SIMPLE IRAs ($19,500 if you are age 50 or older)
    • $23,000 for 401ks ($30,500 if you are age 50 or older)
    • $69,000 for SEP IRAs (Contributions cannot exceed the lesser of 25% of the employee’s compensation or $69,000 for 2024)
  • The Maximum Health Savings Account (HSA) contributions for 2024
    • $4,150 for Self-only coverage
    • $8,300 for Family coverage
    • Those 55 and older can contribute an additional $1,000 as a catch-up contribution.

 

If you have questions, be sure to reach out to us.