Starting January 1, 2018, employers in Washington will be required to provide their employees with paid sick leave.
Initiative 1433, which was approved by Washington State voters in fall 2016, contains 4 primary changes to state law:
- Requires employers to provide paid sick leave to most employees beginning January 1, 2018.
- Increases the minimum wage over the next several years. 01/01/2018 increase to $11.50/hr.
- Ensuring tips and service charges are given to the appropriate staff and,
- Protects employees from retaliation when exercising their rights under the Minimum Wage Requirements and Labor Standards Act.
As the year draws to a close, there are several tax-saving ideas you should consider. Use this checklist to make sure you don’t miss an opportunity before the year is out.
- Retirement distributions and contributions. Make final contributions to your qualified retirement plan, and take any required minimum distributions from your retirement accounts. The penalty for not taking minimum distributions can be high.
- Consider RMD donation. If you don’t need your required minimum distribution, consider donating it to charity. Ask us about how to accomplish this before year-end.
- Investment management. Rebalance your investment portfolio, and take any final investment gains and losses. Capital losses can be used to net against your capital gains. You can also take up to $3,000 of capital losses in excess of capital gains each year and use it to lower your ordinary income.
- Last-minute charitable giving. Make a late-year charitable donation. Even better, make the donation with appreciated stock you’ve owned more than a year. You often can make a larger donation – and get a larger deduction – without paying capital gains taxes.
- Noncash contribution opportunity. Gather up noncash items for donation, document the items and give those in good condition to your favorite charity. Make sure you get a receipt from the charity, and take a photo of the items donated just in case.
- Gifts to dependents and others. You may provide gifts to an individual of up to $14,000 this year, without needing to file a gift tax return. Remember that all gifts given (birthdays, holidays, etc.) count toward the total.
- Organize records now. Start collecting and organizing your end-of-year tax records. Estimate your tax liability and make any required estimated tax payments.