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For years hardship distributions have helped participants deal with unexpected downturns that present serious financial challenges.  While these distributions have been available for several years, the SECURE Act 2.0 made important changes that streamline the administration process by allowing plan sponsors to accept participant self-certification. The change reduces the amount of paperwork and compliance hurdles for plan administrators.

The IRS announced yesterday new tax relief measures that extend certain federal tax deadlines until May 1, 2025. This has extended various filing and payment deadlines and applies to all Georgia residents and businesses. The relief applies to income tax returns normally due in March and April. It also covers 2023 individual and corporate returns with valid extensions and estimated quarterly payments.

Millions of U.S. businesses must now comply with Beneficial Ownership Information (BOI) reporting rules, with the deadline set for January 1, 2025. Under the Corporate Transparency Act, businesses are required to submit BOI reports to the Financial Crimes Enforcement Network (FinCEN). The goal is to increase transparency and prevent financial crimes, such as money laundering and terrorism financing. As of August 2024, only 2.7 million of the 32.6 million businesses required to report have done so. These rules mandate businesses to provide detailed ownership information to the federal government.

Recent changes in Tennessee tax law now allow businesses to claim refunds for franchise taxes on previous payments. On May 10, 2024, Public Chapter 950 was signed into law, eliminating the property measure from the franchise tax calculation. Starting January 1, 2024, businesses will calculate franchise taxes based only on net worth, simplifying the process and potentially lowering tax liabilities.

The Georgia Department of Revenue (DOR) has issued new guidance regarding the state’s Job Tax Credit, a valuable incentive for businesses that create new jobs. This guidance is particularly relevant for companies with questions about meeting minimum wage requirements and how to treat jobs transferred between locations. The recent changes' central focus is the minimum wage requirements and the treatment of transferred jobs.

The automotive industry has long been a source of consumer frustration, with dishonest dealerships using deceptive practices and hidden fees to cloud the car-buying process. To address these issues, the Federal Trade Commission (FTC) introduced the Combating Auto Retail Scams (CARS) Rule in December 2023, a comprehensive set of regulations designed to protect consumers from unscrupulous dealerships. Initially scheduled to take effect in July 2024, it has faced legal challenges that have temporarily delayed implementation. However, its underlying principles remain vital for ensuring a fair and transparent car-buying experience.

The SECURE 2.0 Act of 2022 introduced several updates to retirement savings plans, including a new provision (Section 109) that allows employees ages 60 to 63 to make higher catch-up contributions starting in 2025. This change is designed to help individuals boost retirement savings during the critical final years leading up to retirement.

The SECURE 2.0 Act of 2022 has introduced important changes to retirement plans, particularly for long-term part-time (LTPT) employees. These changes will impact how companies manage retirement benefits, making it essential for plan sponsors to understand and implement the new requirements. With the 2025 deadline approaching, plan sponsors must take action now to ensure compliance and optimize their retirement plans.

It’s easy for business owners and executives to get caught up in the daily tasks of running a company. The time and attention required to maintain operations, drive sales, and propel growth can be significant. Unfortunately, this often leaves little time for other important tasks, such as regularly assessing the organization’s financial vitality and performance. Regular monitoring of financial metrics through key performance indicators (KPIs) provides access to important financial information and trends.

Managing an employer-sponsored retirement plan can be a challenging task, especially for small companies. No shortage of regulations must be followed, including those in the Employee Income Retirement Security Act (ERISA) and mandated by the IRS. Matters become more complicated when a large plan status is reached because of increased scrutiny and compliance requirements such as an annual plan audit. In addition, updates such as those outlined in the SECURE Act 2.0 make it easy to see how unintentional mistakes can be easily made. While specific serious errors require the assistance of the IRS to remedy, most errors can be corrected through the Employee Plan Compliance Resolution System (EPCRS).