City of Philadelphia Wage Tax Decrease Effective July 1, 2022

Effective July 1, 2022, the Philadelphia City Wage Tax will decrease for both residents and non-residents:

  • Wage Tax for Residents of Philadelphia: 3.79% (.0379)
  • Wage Tax for Non-residents of Philadelphia: 3.44% (.0344)

The non-resident City Wage Tax applies to those employed by a Philadelphia-based entity.

This change must be in place for all paychecks dated after June 30, 2022.

Please contact us at 215-723-4881 with any questions.

IRS Issues Increase to 2022 Standard Mileage Rates Effective July 1, 2022

Beginning July 1, 2022, the IRS is increasing the standard mileage rate for business use of a vehicle to 62.5 cents per mile. This is a 4-cent increase from the rate of 58.5 cents per mile that took effect in January 2022.

The standard mileage rate for use of a vehicle for a medical or moving expense will increase from 18 cents per mile to 22 cents per mile.

The rate for every mile driven in service of charitable organizations remains at 14 cents per mile.

Need help tracking your mileage? Revisit this blog post where we make recommendations of easy-to-use online tools to track the quantity and types of miles you drive throughout the year.

Questions? We are here to help. Call 215-723-4881 or contact us online.

Canon Capital Wealth Management Update: The Markets and the Ukraine/Russia Crisis

When considering the Ukraine/Russia crisis, Canon Capital’s Wealth Management team primarily considers different scenarios and evaluates the risk to both our portfolio construction and specific investments.  The goal is to minimize downside exposure while remaining in a position to take advantage of upside gains. We have particularly looked at our investments’ exposure to interest rate risk, as this crisis has the potential to accelerate measured inflation and central banks’ reactions to those readings. Commodity exposure was also scrutinized at our most recent session, as Russia has a particularly outsized presence in energy and metals.  While a reasonably contained conflict will probably have minimal impact on corporate earnings, companies with specific exposure to the Russian economy may be impacted.  Should the conflict escalate, there is potential for a greater impact on macroeconomic factors, and though we think it unlikely at this juncture, it is still a scenario that we will be vigilant for and take appropriate steps to adjust for, if necessary.

Barnhorst Bradley

Bradley Barnhorst, CFA, is a Canon Capital Investment Advisory Committee Member, Chair of Finance at DeSales University, and an Author.

Why You Should Outsource Your Payroll

There’s more to processing payroll than providing your employees with compensation each pay period. Payroll teams must keep up with the latest requirements, from overtime laws and federal forms to minimum wage and tax law updates. This has only intensified since the pandemic began.

Many small businesses that take care of their payroll in-house are feeling the crunch. Whether this is due to staff shortages courtesy of “The Great Resignation” or, at the other end of the spectrum, an increased workload because of business growth, now is an ideal time to consider outsourcing your payroll.

When you entrust your payroll to our payroll professionals at Canon Capital, you’ll gain our years of experience and up-to-the-minute expertise.

With our help, you will:

Maintain Tax Compliance

We keep up with the latest information on federal, state, and local taxes. So whether you’re self-employed, a non-profit, or a for-profit with staff in the hundreds, we have the knowledge to process your payroll correctly and in compliance with current tax requirements.

We can also prepare your tax liability deposits, quarterly returns, and annual returns. We customize the program that best suits your needs.

Cut Down on Payroll Errors

Payroll is all we do every day. We focus on your account so you can focus on running your business.

Enjoy the Convenience of our Employee Self-service Portal

Your employees will be able to see their payroll stubs on-demand, thanks to the Employee Self-service Portal that is part of our service package.

Save Time

It’s simple. We save you time. You submit your payroll data each pay period and we do the rest.

Let us take the hassle out of your payroll processing. Call 215-723-4881 or contact us online to receive a custom quote.

February 2022 Tax Update: Summary and Recording Now Available

Earlier this month we presented a webinar with our co-sponsor Harleysville Bank via the Indian Valley Chamber of Commerce. The session outlined an overview of the 2022 tax season – including planning ideas you can still take advantage of for the 2021 tax year – a legislative outlook, and business retirement plan options.

If there is a portion of the webinar you’d like to revisit or if you were unable to attend the live session, you may view it at your convenience via the Indian Valley Chamber YouTube channel or click the image below. You may also access a PDF file of the presentation slides here.

If you have questions specific to your situation, we are happy to be of service. Please call us at 215-723-4881.

Are You Ready for Tax Season? Join us February 4, 2022 to Learn How to Best Prepare

The 2022 tax season is underway. You may be wondering if there are planning ideas you can still take advantage of for the 2021 tax year. Will there be a new tax bill that could still affect 2021 tax returns? Will there be additional business relief in response to the ongoing surge in the Omicron variant of COVID-19?

Please join us Friday, February 4, 2022, from 8:00 a.m. – 9:15 a.m. via Zoom for a session with Steven Moyer, CPA/PFS, CGMA, CSEP; Brent Thompson, CMA, CGMA, CPA; and Chuck Porter, Jr., Senior Investment Advisor as we discuss these questions and more, including:

  • COVID Relief, including Employee Retention Credits and PPP Forgiveness for business and Advance Child Tax Credits for individuals
  • Build Back Better Plan status and any new proposed legislation
  • Planning for year-end and for the 2022 tax year for both businesses and individuals
  • Business retirement plan options
  • Status of the IRS and best practices for filing your 2022 tax returns to avoid issues
  • Update on New Accounting for Lease Standards effective January 1, 2022

We are proud to be presenting this with our co-sponsor Harleysville Bank via the Indian Valley Chamber of Commerce.

This event is free of charge but you must register to receive the Zoom link. Please register here by February 2, 2022.

 

IRS Standard Mileage Rates for 2022

As of January 1, 2022, the IRS standard mileage rates for the use of a vehicle (car, van, pick-up truck, or panel truck) for business, charitable, medical, or moving purposes are:

  • 58.5 cents for every mile driven for business use (an increase of 2.5 cents from the 2021 rate)
  • 18 cents for every mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces (an increase of 2 cents from the 2021 rate)
  • 14 cents for every mile driven in service of charitable organizations (no change from the 2021 rate)

Keep track of your mileage throughout the year using an app like MileIQ. It could save you a headache later. We talk about the importance of tracking your mileage in this blog post.

Please don’t hesitate to call 215-723-4881 or contact us online with any questions.

IRS Issues Form W-4 for 2022

The IRS has issued the new W-4 form for 2022. The W-4 form underwent a major change in 2021. If this affected the bottom line of our 2021 tax return, we highly recommend doing a Paycheck Check-up so you can make any adjustments to your withholdings. We have a step-by-step guide available to you here.

If you have any questions about your specific situation, please always consult with your tax advisor. If you do not currently have a tax advisor, we welcome the opportunity to serve you. Please call 215-723-4881 or contact us online.

2022 Brings a Raise in the Minimum Wage in New Jersey and Delaware

Most minimum wage earners in New Jersey received a raise of $1 per hour as of January 1, 2022. The new minimum hourly wage is $13.00, part of a scaled increase that will see it rise to $15.00 by 2024. Small businesses as well as seasonal and agricultural employers are obligated to raise their minimum wages on an extended timeline. More details are available here.

State lawmakers in Delaware are also on track to achieve a minimum $15.00 hourly wage for most workers by 2025. As of January 1, 2022, the minimum wage in Delaware rose from $9.25 to $10.50 per hour.

In Pennsylvania, state employees earn a minimum wage of $12.00 per hour. Philadelphia municipal employees earn a minimum hourly wage of $14.25, which will increase to $15.00 in July 2022. Elsewhere in Pennsylvania, the minimum wage remains at the current Federal rate of $7.25 per hour.

We are here to answer any questions regarding these changes or any other concerns related to your payroll. Call 215-723-4881 or contact us online.