News and Events

The City of Philadelphia recently lowered its Wage Tax rates, with new rates now in effect as of July 1, 2025. Here’s what employers need to know:

• 3.74% for residents (down from 3.75% in 2024)
• 3.43% for non-residents (down from 3.44% in 2024)

Any paycheck that you issue with a pay date after June 30, 2025, must have the City of Philadelphia Wage Tax withheld at the new rates for residents and nonresidents.

If you have any questions or need help making the adjustment, our team is here for you. Call us at 215-723-4881.

As we move into the second half of the year, it’s a great time to revisit important deadlines, stay alert to evolving threats, and take a second look at the technologies we’re increasingly relying on. Here are three key things to keep on your radar.

Pennsylvania’s Annual Report Filing Deadline Is June 30.

If your business is registered in Pennsylvania, don’t miss the new state-mandated filing requirement. All LLCs, corporations, and other entities must submit their annual report to the Pennsylvania Department of State, a change that took effect this year.

Annual filing reports must be filed online, and there is a $7 fee (except for non-profits).

Filing deadlines are as follows:

• Corporations and non-profits: June 30, 2025
• Limited Liability Companies, domestic and foreign: September 30, 2025
• All other associations (limited partnerships, limited liability partnerships, business trusts, professional associations) domestic and foreign: December 31, 2025

Filing is required annually moving forward, and failing to do so could eventually lead to administrative dissolution. Need a refresher? Our blog breaks down everything you need to know, including what to file and where.

Payroll Fraud Is on the Rise. Here’s How to Protect Your Business.

Payroll fraud is evolving and getting more convincing. One common scam involves fraudulent requests to change direct deposit information, often made to look like they’re coming from one of your employees.

Here are a few key tips to help safeguard your payroll:

• Verify changes verbally: Call employees directly to confirm any payroll or banking updates.
• Check email addresses closely: Look for small typos or unfamiliar domains.
• Use official forms only: Require secure, approved documents for direct deposit changes.
• Avoid Green Dot cards: These are frequently used in fraudulent schemes.
• Encrypt sensitive data: Never send private info via unprotected email.
• Turn on multi-factor authentication (MFA): Preferably to a mobile phone, not an email address.

 For everyday scam protection, follow these suggestions:

• Don’t open attachments or links from unknown senders.
• Never process payroll changes based on email alone.
• Be wary of urgent or unusual requests for personal or financial data.

 One last tip? If you don’t already have cybersecurity insurance, now’s the time to consider it.

 Don’t Believe Everything the Robot Tells You

 AI tools like ChatGPT can be helpful, but they’re not foolproof. One of the biggest risks with artificial intelligence is a phenomenon known as AI hallucination, which is when a chatbot confidently presents incorrect or entirely made-up information.

A 2023 study found that AI systems hallucinate facts up to 27% of the time, and nearly half of all AI-generated content contained some kind of factual error.

Some examples are funny. like being told to use glue to adhere cheese to pizza crust. Others are far more serious, especially when users don’t realize the information is wrong, like a fabricated legal citation, invented statistics, or a phony business recommendation.

Bottom line: Just because something sounds right doesn’t mean it is right. Always double-check facts with a reliable, human-vetted source.

We’re Here to Help

Have questions about any of these topics? Whether you need help filing your annual report, want to tighten up your payroll security, or are unsure what tech tools make sense for your business, we’re here to help. Call 215-723-4881 with any questions.

Running a business is no small task. You’re juggling customers, employees, and operations while somewhere in the middle of all that is payroll. It might seem manageable at first, but it doesn’t take long before calculating hours, tracking deductions, and keeping up with tax rules starts to feel like a full-time job.

That’s why more and more small and mid-sized business owners are choosing to outsource their payroll. It’s not just about convenience. It’s about gaining peace of mind and making smarter use of your time and resources.

Here are five ways outsourcing payroll can make a big difference:

1. You Don’t Have to Worry About Tax Rules Anymore

Tax laws are always changing, and keeping up with them is practically a job in itself. Federal, state, and local requirements all have their own timelines, paperwork, and penalties for getting it wrong.

When you work with a professional payroll provider like our team here at Canon Capital, we handle all of that for you. You get the confidence of knowing everything is filed correctly and on time without the stress of trying to keep track of every regulation yourself.

2. We Handle the Local Taxes You Might Not Even Know About

If you operate in Pennsylvania, you know local earned income tax (EIT) and local services tax (LST) can be confusing, especially if you’re dealing with multiple municipalities or your employees live in different places.

We take care of all the local tax filings for you. That means no digging through forms or Googling which office needs what. We’ve got it covered, so you can focus on running your business.

3. You’ll Free Up Hours Every Month

Payroll isn’t just “cutting checks.” It’s entering data, double-checking math, managing deductions, generating reports, and filing returns over and over again. If you’re handling that in-house, you’re spending valuable time on something that doesn’t generate revenue.

Outsourcing payroll gives you those hours back. More time for customers, more time for strategy, more time to actually grow your business.

4. It Reduces Risk and Helps You Avoid Costly Mistakes

Payroll errors aren’t just annoying, they can get expensive. A small misstep in withholding or a missed deadline can lead to fines, frustrated employees, and time you can’t afford to waste fixing it.

Our reliable systems and careful review processes keep things accurate from the start. We catch the little things so they don’t turn into big problems.

5. You Get a Team Who Knows Payroll Inside and Out

As your business grows, your payroll gets more complex. New hires, changes in tax laws, and expanded benefits, it all adds up fast.

That’s why working with a payroll partner—not just a processor—matters. Our team is here when you need us, ready to help with questions, offer guidance, and adapt to your business as it evolves. You’re not just a number in a system. We know your name and we’re here to help.

Wondering If It’s Time to Make the Switch?

If payroll is taking up more time than it should, it might be time to talk. Let’s take payroll off your plate.

Contact us online or call 215-723-4881 to learn more about how we can help your business run smoother.

When it comes to cybersecurity, the old way of doing things—including trusting anything inside your network—just doesn’t cut it anymore. Threats are smarter, faster, and always changing. That’s why more businesses are moving to a Zero Trust approach: trust nothing until it’s verified.

If you’re thinking about tightening up your security, here are a few key things to keep in mind:

Always verify identity.
Every time someone logs in, you need to know for sure it’s really them. Strong multi-factor authentication (MFA) isn’t a nice-to-have anymore—it’s a must.

Check the devices too.
It’s not just about the user. Every device trying to connect should meet your security standards. If a device isn’t up to date or secure, it’s a risk.

Limit access.
Only give people access to what they need to do their jobs. Nothing more. It’s one of the easiest ways to keep a breach from spreading.

Keep an eye on everything.
Zero Trust isn’t a set-it-and-forget-it model. You have to keep monitoring users, devices, and activity to catch anything unusual early.

Protect your data—everywhere.
Whether it’s sitting in storage, moving across your network, or being accessed remotely, your data should always be encrypted and secure.

Zero Trust sounds complicated, but it doesn’t have to be. If you’re not sure where to start, we can help. Let’s chat about what makes sense for your business—without the overwhelm.

Contact us today to learn how we can help. Call 267.381.2025 or reach us online.

The start of a new year brings fresh opportunities, but it also brings important financial and security considerations for you and your business. As we move through the first quarter of 2025, here are three updates you need to know.

BOI Reporting and PA Annual Report Filing

The enforcement of the Corporate Transparency Act’s Beneficial Ownership Information (BOI) reporting requirements is currently on hold due to a federal court ruling. This means businesses that have not yet filed do not need to act at this time. However, the situation remains fluid, and reporting requirements may be reinstated later in the year. Stay informed to ensure compliance. Read more.

Starting in 2025, Pennsylvania businesses must file an Annual Report to remain in good standing. This is a new requirement replacing the previous decennial filing system. Reports are due based on your business structure, so be sure to review your deadline and prepare accordingly. Learn more.

Paycheck Calculator—Share with Your Employees

Each tax season, we hear from business owners whose employees are caught off guard by unexpected tax bills. The most common culprit? Insufficient federal tax withholding. To prevent this issue, employees should be encouraged to use the IRS Paycheck Calculator to check their withholding and make any necessary W-4 adjustments. Doing this now can help employees avoid surprises at tax time. Please pass this information along to your team today.

Beware of Tax Season Scams

Tax season is a prime time for scammers looking to steal sensitive financial information. Fraudulent emails, phishing attempts, and fake IRS messages increase significantly this time of year.

Remember:

• Never click on links or open attachments from unknown senders.
• Verify any tax-related emails by contacting the sender directly.
• Be wary of urgent messages requesting sensitive information.

If something seems suspicious, trust your instincts and consult your IT team before taking any action.

Need assistance? We’re here to help. Call 215-723-4881 with any questions.

In keeping with the Department of Treasury’s communicated commitment to reduce regulatory burden on businesses, FinCEN announced on Thursday, February 27, 2025, that it will pause enforcement actions and not issue fines or penalties against companies for failing to file or update beneficial ownership information (BOI) reports. This is pursuant to the previously promulgated Corporate Transparency Act (CTA) reporting deadlines. Refer to the FinCEN announcement at FinCEN Not Issuing Fines or Penalties in Connection with Beneficial Ownership Information Reporting Deadlines | FinCEN.gov.

Given the recent legal and legislative developments and related confusion and uncertainty surrounding CTA/BOI reporting, FinCEN’s announcement pausing reporting deadline enforcement is welcome relief for reporting companies and professionals providing CTA/BOI-related services to reporting companies.

FinCEN noted its intent to issue an interim final rule by March 21, 2025, with updated guidance on extending BOI reporting deadlines. In addition, FinCEN stated it plans to seek public comment on potential revisions to existing BOI reporting requirements and will consider those comments as part of a notice of proposed rulemaking to be issued later this year to determine whether modifications to the reporting deadlines are warranted.

PA Annual Filing Update

It is very important to note that the Federal BOI announcement above is different than the new PA Annual Report Filing reports that are currently due. As a reminder, we cannot file these reports, so we encourage you to do so as soon as possible. For more information, see the following:

Here is a summary of the Annual Report filing requirement, providing extremely helpful information to answer questions and start the filing process.

Further help, with step-by-step instructions and screenshots, can be found at How to File an Annual Report (PDF).

As always, we will keep you informed on these and other topics affecting you and your business.

Beginning in 2025, most businesses will have to file a new annual report with the Commonwealth of Pennsylvania. Exceptions include general partnerships, authorities, fictitious names, financial institutions, and other very narrowly defined business types. There are no exceptions according to the size of the business entity.

Annual filing reports must be filed online, and there is a $7 fee (except for non-profits).

Filing deadlines are as follows:

• Corporations and non-profits: June 30, 2025
• Limited Liability Companies: September 30, 2025
• Limited Partnerships: December 31, 2025

The Pennsylvania Department of State is supposed to mail notices of reminders to file but will not be doing so until two months prior to each deadline. Knowing that mail is not always reliable, we would encourage you to file your annual report now.

Here is a summary of the Annual Report filing requirement, providing extremely helpful information to to answer questions and start the filing process.

Further help, with step-by-step instructions and screenshots, can be found at How to File an Annual Report (PDF).

The filing of this annual report is different from the filing requirement for the Beneficial Ownership Information (BOI) from the federal government. Many other states already have an annual report filing requirement, so we do not expect the court challenges or implementation issues that we have seen regarding BOI filing. We would encourage you to file this annual report with the Commonwealth of Pennsylvania now.

We want to provide a new update regarding the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA).

On January 23, 2025, the U.S. Supreme Court issued a stay of a nationwide injunction previously put in place by a district court in Texas (Texas Top Cop Shop, Inc. v. Garland No. 4:24-CV-478 (E.D. Texas 12/3/24)). Despite this development, it’s important to note that a separate injunction from another Texas court (Smith v. U.S. Department of Treasury (January 7, 2025) U.S. Dist. Court, Eastern Dist. of Texas, Case No. 6:24-CV-336)) remains in place.

The Financial Crimes Enforcement Network (FinCEN) announced on January 25, 2025, that reporting companies covered by the BOI reporting requirement do not have to file the reports (and cannot be penalized for not filing) while an injunction remains in place.

However, any small businesses that fall under the CTA may still choose to submit BOI reports voluntarily.

In legislative developments, two bills, HR 425 and S 100, have been introduced in Congress to repeal the Corporate Transparency Act.

As always, we will stay on top of the fast-changing status of this law and keep you informed of all developments as they occur.

We are hiring for multiple positions. Are you an experienced tax preparer, senior accountant, or manager looking to take your career to the next level? Are you looking for a flexible, collaborative team environment where you can manage your own client base, advance quickly, and be rewarded for your contributions? Are you looking for an extremely broad work and learning experience? If you have 2-10 years of experience in tax preparation and accounting, we have very exciting opportunities and positions for you. Sound like a perfect fit? Click here to learn more about the role and apply now.

Welcome to 2025! Here’s a quick overview of IRS 2025 mileage rates, changes to minimum wage laws in Delaware and New Jersey, and a reminder to review your W-4 for the new year.

2025 IRS Mileage Updates

According to the IRS, the standard mileage rates for 2025 (effective January 1, 2025) are:

• 70 cents for every mile driven for business use
• 21 cents for every mile driven for medical or moving purposes (for qualified active-duty members of the Armed Forces)
• 14 cents for every mile driven in service of charitable organizations (unchanged)

Tip: Consider using an app like MileIQ (or a similar mileage-tracking tool) to keep accurate records of your mileage throughout the year—no more guesswork at tax time.

Check Your 2025 W-4

As the new year begins, it’s a good practice to review and, if needed, update your federal income tax withholdings by conducting a “Paycheck Check-up.” Staying proactive with your withholdings helps prevent unexpected surprises during 2025 tax season. You can access the most recent version of the Form W-4 here.

Download the 2025 Form W-4

Use the IRS Tax Withholding Estimator on their website to gauge whether you need to adjust your withholdings.

Minimum Wage Updates for New Jersey and Delaware in 2025

New Jersey

Starting January 1, 2025, New Jersey’s minimum wage will increase from $15.13 to $15.49 per hour for most employees, marking an hourly rise of $0.36. Special categories such as agricultural workers and long-term care facility staff will see tailored increases, with agricultural wages rising to $13.40 per hour and direct care workers earning $18.49 per hour. Employers must also note that the minimum cash wage for tipped employees will increase to $5.62 per hour, with employers ensuring the total compensation meets or exceeds the state’s minimum wage standards.

Delaware

Delaware’s minimum wage increases from $13.25 to $15.00 per hour as of January 1, 2025. However, exemptions still apply to certain employee categories, including:

• Agriculture
• Domestic service in private households
• U.S. Government employees
• Sales personnel receiving outside commission
• Executives, Administrators, and Professionals
• Employees in fishing and fish processing (while at sea)
• Volunteer workers for educational, religious, or non-profit organizations
• Junior Camp Counselors at non-profit summer camps
• Inmates in Department of Correction work programs

Tipped employees in Delaware must receive a minimum cash wage of $2.23 per hour, with tip pooling allowed under certain conditions, not exceeding 15% of the tips earned, and employers cannot retain tips unless required by law.

Stay Compliant and Informed in 2025

We are here to keep you informed and take the stress out of payroll. If you have any questions about these updates or any other payroll or accounting matter, please don’t hesitate to call 215-723-4881 or contact us online.