Healthcare

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.

In July, Senators Maggie Hassan (Democrat, New Hampshire) and Thom Tillis (Republican, North Carolina) introduced a bill that would expand the research and development (R&D) tax credit. Currently, the R&D tax credit is available in two forms: as a nonrefundable credit to benefit larger and more established businesses, and as a refundable credit to benefit startups and small businesses. Their bill seeks to double the credit for startups by improving their ability to apply for the credit against payroll tax liabilities. The changes represent a greater tax-saving opportunity for qualifying Atlanta and Georgia based companies.

Many Atlanta business owners and individuals may have heard the alarming news that Capital One’s systems were compromised leaving sensitive data exposed. It was reported that information on 100 million US customers was compromised from credit card applications (both small businesses and individuals) submitted between 2005 and early 2019. Information such as names, address, social security numbers, income information, phone numbers, and emails was exposed. It also appears that information on credit scores, limits and balances were also taken. The FBI has formally pressed charges against the suspected perpetrator who is believed to have acted alone. This situation has left many wondering what steps they can take to determine if they were impacted and how to protect themselves.

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.

Atlanta business owners have several responsibilities to focus on, from directing the management team to supporting employees and maintaining focus on the strategic objectives and growth goals of the organization. It’s clear to see time is precious, and when not used properly, it can be a precious resource that is wasted. That’s why a difficult relationship with the company’s financial statement auditor can be so challenging. A relationship that is characterized by poor communication, missed deadlines and an inflexible approach may be signs that a change is needed. While there are certainly challenges in every relationship, business owners need to candidly evaluate their relationship to determine if a change is needed.

The Tax Cuts and Jobs Act (TCJA) implemented several significant changes to the tax code designed to streamline and simplify regulations. Many of the changes such as the Qualified Business Income Deduction, more generous asset expensing and depreciation rules, as well as, the lowering of the corporate tax rate were welcomed by many Atlanta companies. Such changes were essential to meeting the President’s goal of making the U.S. more tax-friendly for businesses. It was not all good news, however, as one of the most common business tax benefits – the meals and entertainment expense deduction – was drastically altered. It eliminated the opportunity for Atlanta businesses to deduct business-related entertainment expenses. Unfortunately, the law didn’t specifically address meal expenses incurred during entertainment events leaving many questioning their deductibility. On October 5th, the IRS issued Notice 2018-76, which provides interim guidance on this issue.