Ignorance is no Excuse: Concerns for Business in 2015

This year Congress will likely enact changes that will result in modifications of the tax law as well as other laws directly impacting small businesses. That’s why we recommend small-to-mid-sized businesses remain aware of regulatory issues that can affect them.

Below are a few in the pipeline to keep top-of-mind:

1. Do you remember the Marketplace Fairness Act of 2013? Designed to create a level playing field between physical stores and on-line merchants, it was supposed to authorize states to collect sales tax on items their residents purchased over the Internet. Although the bill never made it through Congress, the tax revenue it promises to generate should assure it would be reintroduced this year
2. President Obama signed the Tax Increase Prevention Act of 2014 into law on December 19, 2014. The law retroactively expanded roughly 50 tax breaks, also known as “tax extenders,” through December 31, 2014. The short-term extenders were beneficial to small businesses, particularly in areas such as the accelerated expensing of certain asset purchases and bonus depreciation in 2015. This adjustment in the tax law, along with budgetary constraints resulting in IRS layoffs, will likely cause complications in reviewing tax returns and delays in processing refunds.
3. The present trend of passing legislation increasing the minimum wage continues to sweep across jurisdictions throughout the country. It is recommended that businesses remain informed on this subject and comply with minimum wage regulations to avoid costly penalties and sanctions.
4. Obey Ban the Box laws. Ban the Box laws were passed by certain states, counties or cities around the nation to prohibit employers from rejecting a job applicant based solely on a criminal background check. Most applications feature a box that must be checked if the applicant has a criminal history…thus the term…ban the box… The goal of this law is to give an applicant the opportunity to engage in the interview process and demonstrate skills rather than be dismissed as a candidate because of a previous criminal issue. If the law is applicable in your state you must comply.
5. There are a number of developments coming, or currently under consideration, which may impact small business owners who currently offer a retirement plan to their employees, or are thinking about offering one. The U.S. Treasury in 2015 will more broadly introduce its non-mandatory workplace savings program – myRA – which will allow employees to place deferred funds into a program that is similar to a Roth IRA. Additionally, 14 states have proposed legislation that would create workplace savings programs through employers not currently offering a retirement plan for their employees. Other proposed legislation would offer further incentives to small businesses to open retirement plans, provide for lifetime income information on plan statements, and require further disclosures around target-date funds included as plan investment options.
6. In conjunction with the Fair Labor Standards Act, the Department of Labor is expected to initiate new strategies to modify and simplify current overtime protocols. The projected guidelines will likely increase the number of workers who qualify for overtime pay. This will be accomplished by:

• Raising minimum salary levels required for exempt status employees
• Expanding on the definition of responsibilities of so called administrative employees exempt from overtime pay
• As passage of this initiative is said to be imminent employers are advised to review how they determine whom they will classify as exempt employees according to job description, and salary levels. Employers should expect the probability of tracking and paying overtime rates where applicable.

Staying up-to-date with the ever-changing regulatory environment is imperative. Your Lawyer, Insurance Agent, CPA and even your Board of Directors are advisors. You are ultimately responsibly for “getting it right.” Think of it this way…the parties above (your advisors) most likely have malpractice insurance. Is there such a thing as business owners insurance?

Edward DuCoin ed@orpical.com 856.304.2800

Enjoy 3 minutes………...

Addressing the Cyber Apocalypse

2014 proved a banner year for cyber criminals. Hundreds of millions of individuals worldwide were victimized by hackers. Cyber criminals work very hard at being equal opportunity offenders, as evidenced by their victims, which included: government agencies across every continent, major banks, hospital systems, national retail chains, entertainment giant SONY and on January 12th, hackers supporting militants groups took over Twitter and YouTube accounts belonging to a major U.S. military command.

There is no denying that the convenience technology provides has enabled us to do more than we ever dreamed possible. At the same time, consider what we have been made to risk in the process. How bad has it gotten? Following the SONY security breach debacle, a seasoned and celebrated reporter asked President Obama if he perceived the hacking actions of North Korea (the alleged perpetrators) as an act of war. While he responded in the negative, he promised retaliation.

So does this mean we should plan for a cyber apocalypse? Perhaps it’s not my nature to be intimidated, so I have no intention of looking forward to conducting digital business with anything other than confidence….and neither should you. That’s why I suggest we address cyber threats from a genuinely American perspective...vigilance, preparedness and the adamant refusal to be victimized. Our nation’s citizens have the intellect resources and resolve to respond to cyber criminals head-on. It takes a unified effort to win this battle and everyone has a stake in the game. It’s time to turn your concern into commitment and your anxiety into action. Working collectively, large corporations, small businesses, and private citizens can make ourselves impervious to this cyber-crime.

The idea of going paperless has encouraged all of us to engage in many of our day-to-day tasks via digital applications. Easy? Yes. Fast? Real time processing, for sure. Safe? That’s up to you. As we continue to expand the fields of our existence spent within the digital realm, we will become more vulnerable to those diligent and devious malware creators who are constantly devising new and cunning ways to deceive us.

I can offer a few suggestions, but only you can implement them to keep your personal and/or professional web activity secure.

• Install reliable security software and run all updates
• When choosing passwords avoid using names, addresses, birthdates and/or other information that may be easily accessed by a savvy internet searcher
• Change passwords regularly

Technology will continue to perform many of our tasks and with the coming of the Internet of Things (IoT), the majority of them. But when it comes to guarding ourselves and all that is important to us, the human factor must play a crucial role. It’s up to us to investigate and use the safeguarding software that is best for our personal and professional privacy and protection. While we are busy developing smart watches, smart appliances, smart phones and smart clothing (oh yes,,,it’s the next big thing), equally brilliant minds are developing devices to outsmart the smart. Accessibility is great. Having everything at our fingertips is wonderful, but we can be neither lazy nor negligent when it comes to paying for convenience with caution.

Edward DuCoin