The knowledge you need

Like most things in the new year, the cost of ERISA penalties for employee benefit plan violations is going up. The Employee Benefits Security Administration (EBSA) adjusted the penalty amounts for violations after January 14, 2022. The adjustments occur annually and are indexed for inflation, so while the adjustment itself isn’t a new development, the increased penalty amounts are something Atlanta plan sponsors need to be aware of. Now, it is important to note these amounts represent the maximum fine that can be levied, but the Department of Labor (DOL) reserves the right to make adjustments based on specific circumstances.

Cyberattacks are more prevalent than ever.  Unfortunately, it is not a question of if an Atlanta business will have to deal with one, but when. Hackers continue to look for new ways to take advantage of organizations and often accomplish that through unsuspecting and unprepared users. While this most commonly occurs through email phishing or some other form of deception, it is now also taking place within business software as well. More specifically, there has been an alarming increase in the past few months in the malware found within Excel add-ins. These useful additions provide professionals with the additional data management capabilities necessary to completed advanced analysis. Unfortunately, they also carry risks.

Atlanta home builders and contractors had a bumpy ride last two years. Rising material costs, supply chain disruptions, labor shortages, and lower sales combined for a perfect storm of challenging business conditions. Many contractors and developers relied on tax benefits to get by. Some were temporary, like COVID-related tax credits, and others, like energy-efficient tax credits, were industry-specific. In any case, tax incentives helped provide cash flow in an uncertain environment.

Beginning in January 2022, companies looking to claim a refund under IRS Section 41 – better known as the federal Research and Development tax credit – will now have to supply more documentation. Outlined in Office of Chief Counsel Memorandum – 20214101F the extra information, which must be submitted with the annual tax return, is expected to help process R&D credit refunds faster and more efficiently.  Now that the IRS has issued guidance for the new requirements, businesses claiming the credit can work closely with providers to ensure the proper documentation is submitted.

Now more than ever construction is an inherently risky industry. Whereas employees primarily face safety and health risks on the job, contractors and owners must also deal with cost and payment issues, project delays, compliance, and other risks. To make matter worse, the post-pandemic supply chain delays have made necessary materials more difficult to obtain and at a higher price. These liabilities, especially when taken together, can cause a construction project to lose money and increase exposure to legal and regulatory risks.

Since March 2020, it’s been one thing after another for North Carolina businesses. Government shutdowns, shelter in place orders, job losses, reopening and repeated closures, and countless other pivots including vaccine mandates and exclusions. Heading into 2022, businesses have been faced with even more challenges from labor shortages, supply chain disruptions, and rising material/supply costs. That’s why North Carolina’s Business Recovery Grant will be a lifeline to many struggling businesses.

On October 28, 2021, the IRS announced a new fee for executors seeking an estate tax closing letter. An estate tax closing letter specifies the estate tax amount and any generation-skipping transfer tax due. Additionally, it serves as an official certification the estate has been closed and all relevant taxes have been paid. Due to budget constraints and a high volume of estate tax return filings, the letter will now cost filers $67. While this is a nominal fee it represents the estimated direct and indirect costs of managing the totality of letter requests.  Executors, trustees, and other authorized representatives of an estate will need to follow these new requirements when requesting an estate tax closing letter.

What many not-for-profits may not be aware of is that accepting federal funds may trigger the need to comply with single audit requirements. Or, that some state funds may instead originate from the federal government, thus triggering the single audit. Especially with trillions in COVID-related funding having been distributed, not-for-profit executives and Board members may need to brush up on their knowledge of single audits – and what to do if the organization is subject to one. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key details below.

Atlanta Employers with tipped employees on the payroll must be mindful of minimum wage requirements which can become complicated when an employee’s job consists of multiple duties. The Department of Labor (DOL) 80/20 rule provides compliance requirements that businesses must follow in such situations. As of December 28, 2021, the rules changed which will now require organizations to pay careful attention to the type and duration of work performed by certain employees. This change will force affected businesses to review and adjust policies to ensure compliance with the new rules.

The change of focus has created new challenges for independent auto dealers especially when it comes to inventory acquisition. As franchised dealers search for used car inventory, it makes it more difficult for independent dealers to keep lots full. According to the Cox Automotive Dealership Sentiment Index, 4th Quarter, inventory acquisition is the biggest challenge facing dealers.