Every year, the federal government tinkers with business tax laws and accounting and finance teams must stay ahead of the curve to understand how those changes will impact their organization. True to form, there are some important tax laws coming down the pike that may affect your company early in 2017.
Health Insurance Changes
Since the passage of the Affordable Care Act, business requirements for health insurance benefits have become a major hurdle, especially for small and medium-sized companies. This year is no different, but the main focus should be on filing deadlines. In past years, companies have had until March 31 to file 1095 proof of insurance coverage documents. In 2017, that deadline has been moved to January 31. Forms 1094B and 1095A, B and C must be filed manually by February 28 or electronically by March 31.
Federal Tax Changes
Some future rules, regulations and laws are in flux, but there are some important proposals on the table that could take effect before the close of the 2016 calendar year and A&F teams should keep a close eye on the news.
One proposed changes would impact companies with revenues of less than $25 million. The government wants to give these companies an easier means of reporting. It would allow them to use the cash method of accounting, which would free up accountants’ time significantly, and simplify the filing process.
Another proposed change involves depreciation. Qualifying businesses may be able to depreciate 50% of the cost of new equipment or software bought or leased in 2015 for use in the filing year 2016. This change would significantly reduce the tax burden for many companies.
Retirement Plan Changes
Several states are kicking off Retirement Plan Marketplaces next year, including New Jersey. Some cities, like Philadelphia, are also changing their regulations on retirement plans. These marketplaces will set up group retirement options for workers whose companies do not offer a 401(k) or another plan. These jurisdictions want businesses to set up automatic deduction options similar to contributions taken from a paycheck to contribute to a private IRA or Roth IRA.
Some US representatives have proposed a federal solution, but for now, the situation varies from state to state, municipality to municipality. Companies that don’t offer retirement savings plans for their employees should study up on the rules in their jurisdiction.
Navigating the ever-changing tax code can be a challenging, and often frustrating process. It takes the right professionals to ensure regulatory compliance. If your company is seeking top accounting and finance talent, or you want to improve your accounting and finance hiring processes, contact the expert A&F recruiters at Contemporary Staffing Solutions today.