The knowledge you need

On December 3, 2024, a federal court temporarily blocked enforcement of the Corporate Transparency Act (CTA), which requires most U.S. businesses to file Beneficial Ownership Information (BOI) reports. For now, businesses do not need to file, but this could change quickly. The Department of Justice (DOJ) is appealing against the decision, and the Fifth Circuit Court of Appeals is expected to rule by December 20th. If enforcement is reinstated, businesses will face the January 1, 2025, deadline with little time to act.

The Department of Labor (DOL) recently appealed a federal ruling that overturned the previously established overtime rules on salary thresholds. This has set the limits for the Fair Labor Standards Act (FLSA) back to levels set in 2019. While we wait to see what might happen with the appeal during a period of changing Presidential administrations, there are several important considerations companies should make.

With the election results finalized, business leaders are preparing for potential shifts in tax policy under the new administration. President-elect Trump’s focus on making the Tax Cuts and Jobs Act (TCJA) permanent has sparked interest in many Atlanta business owners. However, the details of the tax agenda remain unclear. As the fiscal debate unfolds, businesses will need to stay alert to the possible changes that could shape tax planning, optimization, and financial strategies in the years ahead.

On October 3, 2024, the Financial Crimes Enforcement Network (FinCEN) released updated Frequently Asked Questions (FAQs) regarding the Beneficial Ownership Information (BOI) Reporting rule. These updates address key aspects of the Corporate Transparency Act (CTA) to provide clearer guidance to reporting entities.

Depending on your location, the end of the year can mean construction season is winding down. At the very least, construction company owners may be planning for a new year of projects, including staffing needs, technology upgrades, and new equipment investments. In work that can feel never-ending, it’s easy for important year-end planning to be deferred until later to address the daily issues that often arise. In the closing weeks of the year there are several tax planning opportunities including deductions and credits, the QBI deduction, and tax efficient investment strategies to consider.

As the end of 2024 approaches, now is the time for individuals to fine-tune their financial strategies and explore opportunities for tax efficiency. From maximizing retirement contributions to tax loss harvesting and AMT considerations, understanding these strategies can help reduce tax liabilities and establish a foundation for future financial health.

A recent analysis by Abernathy Daley 401(k) Consultants suggests that around 80% of companies with more than 100 employees may be overpaying on administrative fees for the defined contribution (DC) retirement plans. This finding, based on a review of over 6,500 Form 5500 filings submitted annually to the Department of Labor and IRS, highlights a widespread issue across industries.

The construction industry appears to be poised for more growth this year. It is expected that demand across most sectors will drive growth except for lodging, retail and private office projects. While growth is certainly welcome it does exacerbate issues such as poor worker training and the overall worker shortage. According to the 2024 Construction Hiring and Business Outlook Survey published by the American General Contractors of America, there are several areas driving workforce concerns. This includes the inability to fill open positions where it was found that 77% of respondents are having a hard time filling open positions.

The Tax Cuts and Jobs Act (TCJA) of 2017 introduced significant changes to the U.S. tax code, offering tax savings, reductions, and other benefits to individuals, businesses, and families. The more popular provisions included an immediate reduction in the business tax rate, a new pass-through entity deduction (Section 199a), Net Operating Loss carrybacks, and changes to the annual estate tax exclusion. However, several of these provisions are scheduled to expire at the end of 2025, creating uncertainty for businesses. As the deadline approaches, it is important to be aware of the changes and how to prepare.

The IRS recently issued Notice 2024-73, providing updated guidance for 403(b) retirement plans regarding the inclusion of long-term, part-time employees. A 403(b) plan is a retirement savings plan typically offered to employees of public schools, tax-exempt organizations, and certain religious institutions. Effective for plan years beginning after December 31, 2024, this guidance requires plan sponsors to expand plan eligibility to include long-term, part-time employees who meet specific criteria. These changes stem from the SECURE 2.0 Act, which introduced reforms aimed at enhancing retirement security for Americans, including part-time workers.