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Alexis Nash

The federal government’s comprehensive response to the Coronavirus (COVID-19) pandemic addresses not only efforts to contain the virus, but several business changes designed to protect employees and help companies impacted by this traumatic economic event.

The speed at which the federal government is making changes to how businesses are permitted to operate in light of the Coronavirus pandemic has been lightning fast. These changes touch virtually every aspect of business from offering special disaster loans, unemployment benefits, sick leave policies to tax payment deadline extensions

Many Atlanta businesses pay close attention to tax planning at year-end. There are often easy steps that can be taken to immediately reduce federal and state income taxes. While effective, it’s important to review opportunities throughout the year to identify tax deduction and incentives which can be leveraged based on current or future plans. Atlanta businesses may be surprised to learn there are a number of tax incentives available from the state of Georgia for certain business activities.

In January 2018, the U.S. and China became embroiled in a trade war that altered our nation’s economy and upset growth in many industries. President Trump first imposed import taxes on solar panels and washing machines but soon expanded his tariffs to steel and aluminum, including their derivatives.

Virtual currency, cryptocurrency, digital currency – whatever you call it, the government wants to tax it. On October 9, 2019, the IRS released a Revenue Ruling and an FAQ document that provides clarity on how cryptocurrencies should be taxed. The virtual currency landscape has transformed in recent years, and because the most recent guidance was released back in 2014, taxpayers were stuck not knowing what to report. Identifying how to treat these transactions will help taxpayers better understand their filing responsibilities and can help them incorporate cryptocurrencies into their year-end tax plans.

One area that many don’t pay much attention to until the end of the year is tax planning. It’s common to think about what steps can be taken to help reduce the company’s overall taxes before year-end. The good news is since the 4th quarter just started, there are many steps companies can now take to ensure they pay the least amount possible. There are some new opportunities courtesy of the Tax Cuts and Jobs Act of 2017 (tax reform) and a bevy of other strategies as well.

On January 1, 2020, an estimated 1.3 million more U.S. workers will become eligible for overtime pay. Just last month, the Department of Labor (DOL) ruled to raise the minimum salary threshold for determining an employee’s overtime status by a whopping 50%. Currently, employees earning less than $23,660 annually are eligible for overtime pay, but beginning in the new year, this threshold will jump to $35,568. This shift will compel employers to review their pay scales and reevaluate their existing employee makeup, and more importantly, they must learn to juggle the new costs associated with this new rule.

Retirement planning is an essential financial discipline that Atlanta area individuals need to focus on throughout their career. While there is no shortage of retirement saving approaches, very few are as effective and utilized as employer-based retirement plans. In fact, the U.S. Department of Labor (DOL) found that ERISA covered plans offer higher contribution limits, lower investment management costs, enhanced regulations such as financial reporting and disclosure requirements and automatic enrollment features. Unfortunately, many small businesses struggle to offer employees a plan because of the associated costs. Unfortunately, this leaves employees without a vital retirement savings tool. To address the situation, the DOL recently issued a new final rule which makes it easier for small businesses to participate in multiple employer plans (MEPs).

The opportunity to save for retirement in an employer-sponsored retirement plan, such as a 401(k) or 403(b), is a benefit offered by many Atlanta employers. These plans are useful tools which encourage employees to think beyond their immediate financial needs and save for retirement. Features such as automatic enrollment help to ensure participants are added to the plan as soon as they are eligible. While helpful, there are still many who lack the proper savings for their post-working days. According to CNBC, most Americans close to retirement have only saved 12% of what they need, reflecting an alarming trend. To make retirement saving more accessible, the Securing Every Community Up for Retirement Enhancement (SECURE) Act was passed by the House.

Atlanta area companies working through the challenges of implementing lease account changes may soon breathe a sigh of relief. Given the challenges many are facing, the American Institute of Certified Public Accountants (AICPA) lobbied to get the effective date for the new lease accounting standard changed. The standard, which is already effective for publicly held companies, requires private companies to comply by 2020. On July 17th, the Financial Accounting Standards Board (FASB) voted to officially consider the delay. While the delay is not official it is expected that it will be approved shortly.