During the last week, three things have arisen that affect business owners. Small business owners should be paying attention to these three things, as well. We suggest adding all of them to your agenda for your next conversation with your accountant. All of these matters could change, and thus, they should be monitored carefully.
The first thing to discuss with your accountant is the new reporting requirements for all who have an Employer Identification Number (EIN). The IRS has proposed new regulations that would require periodic updates of company information to ensure that the agency has the latest information about all who have been assigned EINs. This new regulation requires adoption by the Treasury Department. Final regulations will be published in the Federal Register.The second thing to discuss with your accountant is the specific requirements and regulations of the Affordable Care Act. The law requires employers to provide insurance to all employees who work 30 plus hours per week. Technically, these employees are not considered “full-time” employees by many firms. You should know that this requirement is being challenged in Congress at this time. You and your accountant will need to monitor the outcome of the challenge and plan accordingly. According to one recent report, the Congressional Budget Office anticipates that $106 Billion in penalties will be assessed between 2014 and 2022 against employers who fail to provide insurance to these workers. This will certainly affect your budget. It also might affect your hiring strategy.
The third thing to watch and discuss with your accountant is legislation allowing the states to collect sales tax on online transactions. As of the time of this writing, legislation has passed the Senate and been referred to the House of Representatives. The current legislation applies to all online transactions, even if the seller has no physical presence in the state.
If you are a business owner, you need to discuss these three things with your accountant. Not only will these changes affect your business finances and reporting regulations, you might need to implement new systems or processes to manage compliance. You can certainly monitor government actions, but each of these new requirements should be discussed with your accountant. Your accountant is the most knowledgeable person to guide you in these matters.
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