Business Advisory Archives - Page 3 of 9 - Wouch Maloney CPAs & Business Advisors

Employee or Independent Contractor

May 22, 2024/in Business Advisory /by Wouch Maloney

New guidance went into effect on how to determine whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA) on March 11, 2024. The final rule rescinds the 2021 Independent Contractor Rule.

While companies have the right to control how, when, and where employees perform work, they do not have that right with contractors and freelancers.

The Old Rule

The 20-Factor Test was one of the primary systems the IRS used to assess whether a worker has been classified correctly by the companies that hire them. The 20-factor test, commonly known as the “Right-to-Control Test” was designed to evaluate who controls how the work is performed. The general goal was to understand whether a business has the right to direct and control a worker’s actions. It focused on:

Behavioral control
Financial control
Nature of the relationship

The New and Final Rule

The Final Rule formally rescinds the Prior Rule and provides a new interpretation of the independent contractor analysis altogether. The Final Rule focuses on economic reality of the relationship to determine whether a worker should be classified as an employee or an independent contractor.

According to the Department of Labor (revised March 2024): “If the economic realities show that the worker is economically dependent on the employer for work, then the worker is an employee. If the economic realities show that the worker is in business for themself, then the worker is an independent contractor. The economic realities of the entire working relationship are looked at to decide whether a worker is an employee or an independent contractor.”

Companies should consider the below six factors in making the correct classification.

Any opportunity for profit or loss a worker might have. Does the worker have opportunities for profit or loss based on managerial skills? Relevant facts include whether the worker negotiates their pay, decides to accept or decline work, hires their own workers, purchases material and equipment, or engages in other efforts to expand a business or secure more work, such as marketing or advertising.
The financial stake and nature of any resources a worker has invested in the work. This factor looks at whether the worker makes investments that are capital or entrepreneurial in nature. Investments by a worker that support the growth of a business, including by increasing the number of clients, reducing costs, extending market reach, or increasing sales, weigh in favor of independent contractor status.
The degree of permanence of the work relationship. This factor primarily looks at the nature and length of the work relationship. Work that is sporadic or project-based with a fixed ending date (or regularly occurring fixed periods of work), where the worker may make a business decision to take on multiple different jobs indicates independent contractor status. Work that is continuous, does not have a fixed ending date, or may be the worker’s only work relationship indicates employee status.
The degree of control an employer has over the person’s work. This factor looks at things like a company’s ability to control the performance of work and the economic aspects of the working relationship.
Whether the work the person does is essential to the employer’s business. This factor considers whether the work is “critical, necessary, or central” to a company’s primary business, which would suggest an employee status.
A factor regarding the worker’s skill and initiative. This factor primarily looks at whether the worker uses their own specialized skills together with business planning and effort to perform the work and support or grow a business. The fact that a worker does not use specialized skills (for example, the worker relies on the employer to provide training for the job) indicates that the worker is an employee.

“The goal of the test is to decide if the worker is economically dependent on the employer for work or is instead in business for themself. All factors should be considered. No single factor determines a worker’s status, and no one factor, or combination of factors are more important than the other factors. Instead, the totality of the circumstances of the working relationship should be considered,” according to the Department of Labor’s Fact Sheet 13.

Documentation

Companies should conduct a full review of current independent contractor engagements and ensure compliance with the new rule. Employers who misclassify employees as independent contractors may be subjected to monetary penalties, including fines, back wages, and other compensation owed to the misclassified employee. It’s imperative to set up policies and procedures surrounding your documentation process to help properly determine worker classification under the new federal guidelines.

As always, should you have questions on this or other matters affecting you or your business, please call 215.675.8364 or email us to speak with a CPA today.

DISCLAIMER: The WM Update, WM Wednesday Wisdom, WM Daily Update, and other related communications are intended to provide general information, as of the date of this communication, and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

To read the entire rule, visit: Federal Register

Year-End Reminders

December 20, 2023/in Business Advisory /by Wouch Maloney

Less than two weeks remain in 2023. For this WM Wednesday Wisdom, we are providing a recap of the tax planning articles and year-end reminders we have published over the past few weeks. We want to make certain you have the information you need before December 31st.

Year-End Reminders and Articles

In case you missed it! Please click on the topic of interest below to read that article.

Holiday Hours

All Wouch Maloney offices will be closed on Monday, December 25, 2023 and Monday, January 1, 2024.

Questions

If you have questions about these year-end reminders including tax planning or other accounting, tax or advisory services, please call 215.675.8364 or email us to speak with a CPA today.

DISCLAIMER: The WM Update, WM Wednesday Wisdom, WM Daily Update, and other related communications are intended to provide general information, as of the date of this communication, and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Mitigate Risk by Cross-Training Employees

October 18, 2023/in Business Advisory /by Wouch Maloney

For small businesses, cross-training can be particularly valuable and an effective way to mitigate risk. With fewer employees, the loss of a key team member can have a significant impact on operations. By cross-training multiple employees in key functional areas, you can help to mitigate risk and ensure that your business can continue to function effectively, even in the face of unexpected absences.

Key areas for a cross-training program:

Document your key processes. You cannot cross-train if you don’t know the process. These written processes will turn into training documents as you implement your program. The first step is identifying key processes and procedures and having your current people that are doing these functions to get them down on paper or documented through short videos.
Communicate to your team. Inform employees before starting a cross-training program. Help your team understand the purpose as to why the company is cross-training your team which may include preparation for organizational growth, new industry standards, to cover functions when someone is on vacation, or to adjust to a changing structure that’s focused around roles and responsibilities. Continue to communicate with your team throughout the process with status updates and next steps.
Present cross-training as an opportunity. Your employees may be more resistant to cross-training if it feels like it’s an obligation or a threat to their roles. You can help them feel motivated by highlighting the benefits, like developing different skill sets and having a better understanding of how their contributions positively impact other parts of the business.
Start with a small pilot program. Test the waters with a select group of employees to get a better understanding of what works and what needs to be tweaked. You can then expand the program later as you gain insight and experience.
Determine cross-training hours. Figure out how much time can be dedicated to cross-training for each team to still run efficiently. This may include setting aside a few hours each day or setting aside full days for a certain period of time to focus on cross-training. If your business is seasonal, ramp up cross-training during your low seasonal period.
Listen to feedback. You may learn that some employees have already started cross-training on their own. You can use this kind of valuable feedback to fine-tune your official cross-training program.

In today’s fast-paced business environment, it’s more important than ever to ensure that your company can continue to function smoothly even if key employees are unavailable. Cross-training isn’t just about risk mitigation for your business – it’s also about employee development. Long-term benefits may include improved productivity, reducing the risk of work disruption, boosting employee morale, and preparing your business for unexpected situations.

If you have questions about how these changes may affect you, please call 215.675.8364 or email us to speak with a business advisory professional today.

Revised Form I-9

August 9, 2023/in Business Advisory /by Sweta Joshi

All U.S. employers must properly complete Form I-9 for each person they hire, regardless of whether the individual is a U.S. citizen, permanent resident, or non-citizen. The U.S. Citizenship and Immigration Services (USCIS), part of the U.S. Department of Homeland Security (DHS), recently requested money from Congress to hire approximately 700 new positions in 2023, signaling a likely increase in Form I-9 audits. This makes Form I-9 compliance especially critical for employers in 2023.

The current I-9 Form version expires on October 31, 2023. Current employees with valid I-9 Forms on file do not need to complete new Form I-9s. However, all new hires and certain re-hires will need to complete new Form I-9s starting on November 1, 2023.

Overview of Form I-9 changes:

Reduced Sections 1 and 2 to a single sheet. No previous fields were removed. Multiple fields were merged into fewer fields when possible, such as in the employer certification.
Moved the Section 1 Preparer/Translator Certification area to a separate Supplement A that employers can use when necessary. This supplement provides three areas for current and future preparers and translators to complete as needed. Employers may attach additional supplements as needed.
Moved Section 3 Reverification and Rehire to a standalone Supplement B that employers can use as needed for rehire or reverification. This supplement provides four areas for current and subsequent reverifications. Employers may attach additional supplements as needed.
Removed use of “alien authorized to work” in Section 1 and replaced it with “noncitizen authorized to work” and clarified the difference between “noncitizen national” and “noncitizen authorized to work.”
Ensured the form can be filled out on tablets and mobile devices by downloading onto the device and opening in the free Adobe Acrobat Reader app.
Removed certain features to ensure the form can be downloaded easily. This also removes the requirement to enter N/A in certain fields.
Improved guidance to the Lists of Acceptable Documents to include some acceptable receipts, guidance, and links to information on automatic extensions of employment authorization documentation.
Added a checkbox for E-Verify employers to indicate when they have remotely examined Form I-9 documents.

Alternatives to Form I-9 Document Verification

Federal law requires employers to physically examine documents that confirm an employee’s identity and employment eligibility documentation to determine if it reasonably appears genuine and relates to the employee presenting it. In response to the COVID-19 pandemic, the DHS allowed an exemption, permitting employers operating remotely to conduct virtual verification of an employee’s approved Form I-9 documents. Qualifying employers can review an employee’s identity and employment eligibility documentation over videoconference, fax or email.

This remote verification exemption was set to expire on Oct. 31, 2022; however, the DHS and the USCIS formally published a proposed permanent rule to allow employers to remotely review the Form I-9 identity and employment authorization documents when hiring, reverifying or rehiring employees.

E-Verify

To participate in the remote examination of Form I-9 documents under the DHS-authorized alternative procedure, employers must be enrolled in E-Verify, examine and retain copies of all documents, conduct a live video interaction with the employee, and create an E-Verify case if the employee is a new hire.

Among the changes to I-9 form is a checkbox employer enrolled in E-Verify can use to indicate they remotely examined identity and employment authorization documents under an alternative procedure authorized by the Department of Homeland Security (DHS) described above.

If you have questions about how these changes in the law may affect your business or personal return, please call 215.675.8364 or email us to speak with an accounting professional today.

For more information about the I-9 form, click here to visit the U.S. Department of Homeland Security Seal, U.S. Citizenship and Immigration Services website.

Employee or Independent Contractor

June 21, 2023/in Business Advisory /by Wouch Maloney

Avoid Misclassification of Employees

Summer usually brings a wave of new hires to many businesses. From new graduates beginning their career, summer interns, or hiring additional help for projects that require extra assistance, it is important for employers to classify workers correctly. If a business misclassifies an employee without a reasonable basis, it could be held liable for employment taxes for that worker.

The IRS uses numerous factors to determine employee classification. Factors include evidence of the degree of control and independence and fall into the following three categories:

Behavioral control,
Financial control, and
Type of relationship of the parties.

Behavioral Control

The two differentiators of behavioral control will show whether there is a right to direct or control how the worker does the work.

Independent Contractor

The general rule provided by the IRS is: an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.

Common-Law Employee

The IRS defined an employee as: under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done.

Additional behavioral control factor categories include:

Type of instructions given
Degree of instruction
Evaluation systems
Training

Financial Control

Financial control refers to facts that show whether or not the business has the right to control the economic aspects of the worker’s job.

The financial control factors fall into the categories of:

Unreimbursed expenses
- An employee is usually reimbursed for expenses associated with their work where an independent contractor is more likely to incur expenses that are not reimbursed.
Opportunity for profit or loss
- Having the possibility of incurring a loss indicates that the worker is an independent contractor.
Services available to the market
- An independent contractor has the ability to seek out business opportunities advertise, maintain a business location and are available to work for several customers.
Method of payment
- An employee will often have a regular wage for hourly, weekly, or other time periods. An independent contractor will often be paid an agreed upon fee for a project or job.

Understanding Business Relationships

To determine whether someone who is providing services is an employee or independent contractor, you must understand the business relationship between you and that person who is performing the service.

The substance of the relationship, not the label, governs the worker’s status. It doesn’t matter whether the individual is employed full time or part time.

To determine whether an individual is an employee or an independent contractor under the common-law rules, the relationship of the worker and the business must be examined. In any employee-independent contractor determination, all information that provides evidence of the degree of control and the degree of independence must be considered.

How the worker and business perceive their relationship to each other depends on certain factors which generally fall into the categories of:

Written contracts
- The IRS is not required to follow a contract that states a worker is an independent contractor, responsible for paying their own self employment tax. The IRS will base its decision in part by how the parties work together.
Employee benefits
- Employer benefits such as insurance, pension plans, paid time off are usually provided to an employee, not an independent contractor.
Permanency of the relationship
- If the worker will work for a specific project or period, that leans towards an independent contractor, if the worker remains working for an employer indefinitely, that will likely create an employer-employee relationship.
Services provided as key activity of the business
- If a worker provides services that are a key aspect of the business, it is more likely that the business will have the right to direct and control his or her activities. If an employer (business) presents a workers work as its own, and controls or directs the work of the worker, the IRS would find this as an indicator of an employer-employee relationship.

Taxes for Independent Contractors (Self-employed)

An independent contractor will be required to pay income tax as well as self-employment tax on their net earnings. Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. Wage earners have Social Security and Medicare taxes withheld from their paycheck and matched by their employer.

As a self-employed individual, you may have to file Estimated Taxes quarterly. You can use these estimated tax payments to pay both your income tax and your self-employment tax liabilities.

Taxes for a Common-Law Employee

A common-law employee will often have a regular wage for hourly, weekly, or other time periods plus have withholding taxes taken out each pay period. In addition, an employer could provide health insurance benefits, life insurance, disability insurance and other benefits that would not be offered to an independent contractor.

Still Need Help with Employee Classification?

If you have questions regarding the classification of a worker, please contact us. We are available to answer your questions and assist at any time.

Year-End Payroll Processing Reminders for 2022

December 14, 2022/in Business Advisory /by Julie Shennard

As the year comes to a close, we hope the following information will help reduce or eliminate errors while you complete your year-end payroll processing for 2022.

Year-end Payroll Checklist

Make certain all information is up-to-date and correct for each employee
If you issued manual checks and/or voided checks, be sure your payroll information is up-to-date and correct in your software or with your third-party payroll provider before December 30, 2022
Verify that all cash and non-cash income has been recorded and taxed properly. Common W-2 adjustments include:
- Group-term life insurance in excess of $50,000
- Employer-paid health insurance premiums for subchapter S shareholders who own at least 2% of the company
- Personal use of a company vehicle
- Third-party sick pay
- Company-provided transportation or parking
- Non-qualified moving expense reimbursements
- Non-accountable business expense reimbursements or allowances
- Bonuses and other annual incentive pay
- Employer-paid education not related to the employee’s job
- Non-cash payments
- Health care premiums– Employers with over 250 employees must report the total cost of employer-sponsored health care coverage
Remind employees to fill out a new Form W-4 if their situation has changed
Check for excess retirement contributions to 401(k), 403(b), or SIMPLE retirement plans as they cannot exceed IRS limits
Start preparing for ACA Annual Reporting – Determine if your company had 50 or more full-time employees for form 1095 reporting:
- 50 or More Employees: Complete and file Forms 1095-C and 1094-C
- Less Than 50 Employees (Self-Insured): Complete and file Forms 1095-B and 1094-B
- Less Than 50 Employees (Fully Insured): The insurer is responsible for filing on behalf of the employer Less Than 50 Employees (No Insurance): Reporting is not required
Check with your payroll provider to find out the last day you can submit final 2022 payrolls to avoid penalties and interest charges
Holiday Impacts: If your check date falls on either of these dates, you should adjust it to avoid delaying your employees’ payroll checks/direct deposits:
- Christmas Day is Sunday, December 25^th but the holiday is recognized by the Federal Government on Monday, December 26th.
- New Year’s Day is Sunday, January 1, 2023 and will be recognized by the Federal Government on Monday, January 2, 2023.

Questions?

Should you have questions about year-end payroll processing, or any other topics related to your personal or business situation, please contact us at any time.

DISCLAIMER: The WM Update, WM Wednesday Wisdom, WM Daily Update COVID-19, COVID-19 Business Resources, COVID-19 Client News Alerts and other related communications are intended to provide general information, including information regarding legislative COVID-19 relief measures, as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Employee Retention Credit Scam

November 30, 2022/in Business Advisory /by Wouch Maloney

Over the last few years, we have helped numerous clients receive Employee Retention Credits (ERC). The ERC was a welcome benefit for employers during the pandemic. Unfortunately, we have heard that some of you have been contacted by individuals promoting improper and fraudulent tax credits. The IRS became aware of the Employee Retention Credit scam and how third parties are charging large fees for credits that employers are not eligible to receive.

What We Know

On October 19, 2022, the IRS published a news release with the following details:

“The Internal Revenue Service today warned employers to be wary of third parties who are advising them to claim the Employee Retention Credit (ERC) when they may not qualify. Some third parties are taking improper positions related to taxpayer eligibility for and computation of the credit.

These third parties often charge large upfront fees or a fee that is contingent on the amount of the refund and may not inform taxpayers that wage deductions claimed on the business’ federal income tax return must be reduced by the amount of the credit.

If the business filed an income tax return deducting qualified wages before it filed an employment tax return claiming the credit, the business should file an amended income tax return to correct any overstated wage deduction.”

Sound Too Good To Be True?

The IRS encourages businesses to be cautious of advertised schemes and direct solicitations promising tax savings that are too good to be true.

Questions?

As always, if you have a questions concerning ERC credits, or any other questions regarding your tax returns, please reach out to us to discuss.

DISCLAIMER: The WM Daily Update, WM Wednesday Wisdom, Newsletters, COVID-19 Business Resources, COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

To read entire update from the IRS regarding the Employee Retention Credit scam, please click here.

For more articles regarding Employee Retention Credit, please click here.

Employee or Independent Contractor? What To Know About DOL Proposed Rule

October 12, 2022/in Business Advisory /by Wouch Maloney

The Department of Labor (DOL) announced a proposed rule regarding how to determine if a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA). The rule is scheduled to be published and open for comment on Thursday, October 13, 2022.

Why Employee Classification Matters

According to the DOL news release, “misclassification is a serious issue that denies workers’ rights and protections under federal labor standards, promotes wage theft, allows certain employers to gain an unfair advantage over law-abiding businesses, and hurts the economy at-large.”

Employees and independent contractors gather around a table. — *Employee or Independent Contractor? New rule by DOL will provide new guidance to employers.*

Classifying New Hires

The proposed rule will rescind the 2021 Independent Contractor Rule and restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA.

The proposed rule is an attempt to:

Align the department’s approach with courts’ FLSA interpretation and the economic reality test.
Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors.
Revert to the longstanding interpretation of the economic reality factors. These factors include the investment, control and opportunity for profit or loss factors. The integral factor, which considers whether the work is integral to the employer’s business, is also included.
Assist with the proper classification of employees and independent contractors under the FLSA.

Need Help With Classification?

If you are planning to hire a worker and have questions as to whether this worker should be treated as an employee or independent contractor, please contact us. We will continue to monitor the status of this rule and keep you updated.

Preparing Your Business for a Recession

July 27, 2022/in Business Advisory /by John Maloney

As a business owner, it’s important to grasp the impact a recession may have on your business. As we move through unknown financial challenges, there are several things to consider. Below is a list of items you should be aware of that will help you make the best management decisions when preparing your business for a recession.

Budgeting

If a recession is on the horizon, budgeting plays an important role on many fronts. Questions to ask yourself:

What impact will the recession have on each industry and business?
Do budgets need to be adjusted? Not only for remainder of the current year but the following year as well.

Month End Close Process

Whether a recession is looming or not, it is always imperative to know how your business is doing in real time. When navigating your business during economic uncertainties, managing your numbers plays an extremely important role in understanding your financial situation. Be certain to have a process in place to close your books each month. Don’t procrastinate. It is better to be proactive and have an accurate understanding of how your business is performing.

Cash Flow Management

In order to have a better understanding of your working capital, know your customers, speak with your customers and understand their cash flow. Make certain you “listen” to your customers or clients about their challenges. Having a firm understanding of their situation will help you plan accordingly.

Banking Relationships

In business, it is critical to maintain a solid banking relationship in good times and in times of anticipated economic uncertainty. If you do not already have a solid banking relationship, speak with your lending institution now about credit availability. It is wise to request increases in credit early because it may take some time to process when a recession is declared. Don’t wait for an emergency, take action in advance and be prepared.

Tax strategies for business — **Know your options, strategize and be prepared.**

Bankruptcy

If your business is in distress and you are thinking about filing for bankruptcy, consult with a bankruptcy attorney and a CPA who specializes in tax strategies. A bankruptcy attorney will help you understand the differences between filing Chapter 7 or Chapter 11, as well as provide you with guidance for paying secured vs. unsecured creditors. A CPA will be able to provide guidance and strategies you can implement regarding tax obligations.

Are You Preparing Your Business for a Recession?

No one wants another recession and we cannot control the current situation. What we can do is prepare for the worst-case scenario and hope for the best. Please know we are available to help you make the best decisions for your specific situation.

Know your options and be prepared.

Questions?

As always, should you have questions about this topic, or any other topics related to your personal or business situation, please contact us at any time.

IRS Proposes New Rules for Required Minimum Distributions

March 9, 2022/in Business Advisory /by Wouch Maloney

Last month, the IRS proposed new rules related to Required Minimum Distributions (RMDs) from qualified plans, section 403(b) annuity contracts, custodial accounts, and retirement income accounts, as well as individual retirement accounts and annuities and eligible deferred compensation plans under section 457. The purpose of the proposed regulations is to update the regulations to reflect the amendments made by the Setting Every Community Up for Retirement Enhancement (SECURE) Act that was enacted in December 2019. At that time, we reported that the SECURE Act was widely considered to be the most significant retirement policy legislation since the Pension Protection Act of 2006.

Proposed Regulation Changes for 2022

The proposed regulations will affect administrators of, and participants in, those plans; owners of individual retirement accounts and annuities; employees for whom amounts are contributed to section 403(b) annuity contracts, custodial accounts, or retirement income accounts; and beneficiaries of those plans, contracts, accounts, and annuities.

Proposed changes include (but not limited to):

Statutory effective date of the limitation on beneficiary life expectancy distributions
Distribution requirements for participants in multiple plans
Distributions commencing during an employee’s lifetime (beginning dates)
Death of employee before required beginning date
New definition of eligible designated beneficiary
Revision of the definition of age of majority for the beneficiary
Definition of disability, specifically for beneficiaries under the age of 18
Retaining see-through trust concept and determining which see-through trust beneficiaries are treated as beneficiaries of the employee
Guidance on multi-beneficiary trusts
Determining RMD while the employee is alive: If employee’s sole beneficiary is their spouse who is more than 10 years younger than the employee, the Joint and Last Survivor Table will be used.
Actuarial increase for employees retiring after age 70 ½
Exclusion from income of amount rolled over

Public Comments Welcome

A public hearing on the proposed new rules is scheduled for June 15, 2022. Public comments may be submitted electronically on or before May 25, 2022.

WM WISDOM:
Should the proposed regulations get approved later in 2022, we recommend you speak with your tax professional or financial advisor to determine if any of the new regulations pertain to your personal situation.

QUESTIONS?

Should you have questions about this topic, or any other topics related to your personal or business situation, please contact us at any time.

Year-End Reminders and Articles

Holiday Hours

Questions

Overview of Form I-9 changes:

Alternatives to Form I-9 Document Verification

E-Verify

Behavioral Control

Financial Control

Understanding Business Relationships

Taxes for Independent Contractors (Self-employed)

Taxes for a Common-Law Employee

Still Need Help with Employee Classification?

Year-end Payroll Checklist

Questions?

What We Know

Sound Too Good To Be True?

Questions?

To read entire update from the IRS regarding the Employee Retention Credit scam, please click here.

For more articles regarding Employee Retention Credit, please click here.

Why Employee Classification Matters

Classifying New Hires

Need Help With Classification?

Budgeting

Month End Close Process

Cash Flow Management

Banking Relationships

Bankruptcy

Are You Preparing Your Business for a Recession?

Questions?

WM Newsletter

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