Construction

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.

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 Corporate Transparency Act was passed in 2021 and became effective on January 1, 2024. The legislation aims to increase financial transparency and counter illicit financial activities, including money laundering and terrorist financing. To comply with the new regulations, many business owners are required to report Beneficial Ownership Information (BOI) to the Federal Crimes Enforcement Network (FinCEN). This includes personally identifiable information (PII) of each business owner, including taxpayer identification number, amongst other data points. The information is required to be submitted electronically on the FINCEN website.

The Department of Labor (DOL) has announced a significant update to The Fair Labor Standards Act (FLSA), set to expand overtime eligibility for salaried workers in the United States. Effective from July 1, 2024, this update increases the salary thresholds for overtime eligibility and refines the classification criteria for executive, administrative, and professional (EAP) employees. This development marks one of the most substantial shifts in federal labor policy in recent years. With this rule change expected to grant overtime protections to approximately 4.3 million additional workers, its impact is expected to be felt across industries, especially within the hospitality, healthcare, finance, manufacturing, and retail environments. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key details below.

What happens when you take established legislation, build on it, reconcile 3 bills into one, and then add more than 100 provisions? You get the SECURE Act 2.0, a bill that passed by a vote of 414-5 that was signed into law on December 29, 2022, as part of the Consolidated Appropriations Act of 2023. The overall goal of SECURE 2.0 is to make enrolling in retirement plans and saving for retirement more accessible than ever. While most of the changes impact plan participants, there are several updates and changes that will impact plan sponsors this year alone.

The golden years are a time when the days of the daily grind of the working world are left behind and a new chapter begins. It often means spending more time pursuing hobbies, time with family, or traveling. As lovely as it sounds, this reality may simply be out of reach for many. Most workers do not have enough saved to be able to support themselves, even when coupled with anticipated Social Security payments. According to the U.S. Bureau of Labor and Statistics, only 55% of workers participate in an employer-sponsored retirement plan. This alarming statistic prompted Congress to take action resulting in the passage of the SECURE Act in 2019. The legislation made it easier to save, expanded plan eligibility to part-time employees, and more.

Most Atlanta construction contractors are going into the new year with a positive outlook. This is because of the convergence of positive indicators including sales, profits, staffing, and available jobs. In fact, the Construction Backlog Indicator, which highlights the amount of work companies are contracted to complete in the future is quite positive. It is now at the highest level since 2019. Despite this, many are concerned about the current economic situation and what steps to take should a recession hit in the coming months. While it's unclear what will happen, there are several steps that companies can take now to weather a potential storm.