News and Events

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.

The Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA) have been temporarily halted following recent court rulings.

On December 26, 2024, the 5th Circuit Court reversed an earlier stay, reinstating a preliminary injunction that prevents the Financial Crimes Enforcement Network (FinCEN) from enforcing the BOI filing requirements:

“However, in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments, that part of the motions-panel order granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and the Reporting Rule is VACATED”

This ruling concludes that, while the court considers the appeal, the injunction stands, and BOI reporting is not required until a court decision is reached, providing a clear status update.

We will keep you updated as matters develop.

Days after a judge in Texas ruled that a nationwide preliminary injunction barring FinCEN from enforcing the Corporate Transparency Act (CTA) would stand, the U.S. Court of Appeals for the Fifth Circuit has declared the opposite. In a December 23, 2024 ruling, a unanimous Fifth Circuit bench granted the government’s emergency motion for a stay pending the appeal.

The reversal means that the businesses that are required to file BOI reports must now do so during the appeal process.

In response to the Court decision, the Financial Crimes Enforcement Network (FinCEN) has granted a short extension.

Extended Deadlines for Existing Companies
Companies created or registered before January 1, 2024, must file their initial BOI reports by January 13, 2025 (extended from January 1, 2025).

Extensions for Recently Registered Companies
Companies registered between September 4, 2024, and December 23, 2024, now have until January 13, 2025, to file their BOI reports.

Companies registered between December 3, 2024, and December 23, 2024, receive an additional 21 days from their original filing deadline.

Disaster Relief Extensions
Depending on their circumstances, companies qualifying for disaster relief may have filing deadlines beyond January 13, 2025.

New Companies Starting in 2025
Companies registered on or after January 1, 2025, must file their BOI reports within 30 days of their creation or registration becoming effective.

You can find information and file your BOI reports at www.boiefiling.fincen.gov.

Here’s what’s new for businesses as we approach 2025: a delay in the Department of Labor’s overtime rule and the launch of Delaware’s new Paid Leave Program.

Overtime Rule Delay: What’s Next?

A recent federal court ruling has temporarily delayed the implementation of the U.S. Department of Labor’s (DOL) proposed changes to the overtime rule. These changes would have raised the salary threshold for employees to qualify for overtime pay, impacting many businesses nationwide. The court vacated the rule, citing concerns over the methodology used in determining the new salary thresholds.

For now, the overtime rule remains in limbo. While the DOL may revise or reinstate the rule in the future, we recommend that employers keep an eye on further developments. In the meantime, it’s crucial for business owners and HR professionals to continue monitoring their exempt employees’ compensation to ensure compliance with existing regulations.

Delaware’s Paid Leave Program

Starting January 1, 2025, Delaware will join the ranks of states offering paid family and medical leave for workers with its own state-run Paid Leave Program. This new legislation mandates that businesses with 10 or more employees provide employees with paid leave benefits. This includes paid parental leave, as well as time off for medical reasons, family caregiving, and addressing the impact of a family member’s overseas military deployment.

Some key points about the Delaware Paid Leave Program:

• Employers with 10 or more employees must provide paid parental leave benefits, and employers with 25 or more employees must provide full coverage for parental, medical, and family caregiving leaves.
• The program pays eligible employees 80% of their weekly earnings, up to $900 per week.
• Employers can choose to self-insure or use private plans, as long as the benefits meet or exceed the state program.

As businesses prepare to comply with this new mandate, they should be aware of the potential penalties for non-compliance. Registering with the state’s administrative system, Delaware LaborFirst, will be required, and contributions will be due starting January 1, 2025. For more information on the program and to get started, visit the Delaware Department of Labor website.

Count on Canon Capital Payroll

As your trusted payroll partner, we’re here to help you navigate these changes and ensure compliance. We will continue to monitor both the federal overtime rule and Delaware Paid Leave to provide you with the latest updates and guidance.

The final quarter of the year is often a busy time, but it’s also an opportunity to prepare your business for a successful start to the new year. Whether you’re navigating evolving cybersecurity threats, preparing for regulatory changes, or getting ready for payroll updates, here’s a quick rundown of what to know as we wind down the final quarter of the year.

Cybersecurity: Stay Vigilant Against Holiday Scams

It’s the height of the holiday season, and with it comes an increased risk of cyberattacks targeting small businesses. According to recent data, one in three small businesses was targeted by a cyberattack last year. As you shop online for holiday deals, be especially cautious of scams. Common threats include fake holiday sale emails containing malicious links that can compromise your business’s systems.

Here are a few tips to stay protected:

• Buy from reputable websites or brick-and-mortar stores.
• Be cautious when connecting new smart devices to your business network. Ensure they have the latest security patches and configurations before use.
• Educate your team on the importance of verifying email sources and avoiding suspicious links.

Corporate Transparency Act BOI Reporting on Hold

A recent ruling by a Texas Federal Court has temporarily halted the Corporate Transparency Act’s Beneficial Ownership Information (BOI) reporting requirements. The court raised constitutional concerns, providing relief to the millions of businesses preparing their filings. For now, those who have already filed need not take further action, and those who haven’t are not required to file at this time. As the issue moves through the courts, changes to the reporting requirements may occur in 2025. We will keep you updated.

Payroll Update: Overtime Rule Changes

A recent federal ruling has delayed the implementation of the Department of Labor’s new overtime rule, which was set to raise the salary threshold for exempt employees. The court vacated the rule, citing concerns over the methodology used to determine the thresholds. As a result, we will monitor further developments and issue updates since the new rule may still be modified or reinstated in the future.

If you need assistance navigating these changes, please contact us for expert advice tailored to your business needs.

We’re proud to announce that Moriah Randolph has earned her certification from the National Association of Certified Public Bookkeepers (NACPB).

This certification reflects Moriah’s commitment to excellence in bookkeeping and her dedication to providing our clients with precise, dependable financial management.

Congratulations, Moriah, on this well-deserved achievement!

We recently wrapped up our second annual Pack-a-Shoebox Party for Operation Christmas Child, an organization dedicated to bringing hope, joy, and the message of love to children around the world through simple gifts.

Thanks to the enthusiastic efforts of our team, we packed an incredible 53 shoeboxes filled with toys, hygiene items, and school supplies. These boxes are on their way and will soon brighten the lives of children in need, reminding them that they are cared for and not forgotten.

A huge thanks to everyone on our Canon Capital team who participated and contributed to this heartwarming cause. Here’s to making an impact—one shoebox at a time.

UPDATE

On December 3, 2024, a Texas Federal Court granted a nationwide preliminary injunction against the Corporate Transparency Act. The court cited potential constitutional issues with the CTA BOI reporting and felt there was enough injury to warrant this preliminary injunction.

This injunction brings welcome relief to many of the approximately 32.6 million companies working through the filing. The preliminary injunction alleviates the immediate reporting requirements until the constitutionality issue can be settled in courts—most likely the Supreme Court.

Given the commencement of a new administration in 2025, the reporting regulations may be withdrawn or modified next year, or they could be found unconstitutional.

Businesses and individuals that have already filed do not need to take any further action. Those who have not filed are no longer obligated to do so at this time.

As always, we will keep you updated in 2025 when more information becomes available.

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If you’re a small business owner, you may not be aware of a new reporting requirement that could impact your company: the Beneficial Ownership Information (BOI) filing under the Corporate Transparency Act. Overseen by the U.S. Treasury, this obligation applies to most small businesses registered with a secretary of state or similar office.

Here’s what you need to know to stay compliant and avoid potential penalties:

What Is the BOI Reporting Requirement? 

Unlike tax filings submitted to the IRS or state authorities, BOI reporting is required by the Financial Crimes Enforcement Network (FinCEN) under the U.S. Treasury. The goal is to enhance corporate transparency and combat illicit activities, such as money laundering.

Deadlines to File 

• New Businesses: If your business was created or registered in 2024, you have 90 days from the date of creation to file your BOI report.
• Existing Businesses: If your business was in existence as of December 31, 2023, you have until December 31, 2024, to comply.

Legal Challenges and Potential Delays 

Currently, there is ongoing confusion surrounding BOI filing requirements, driven by court cases and proposed legislation. While some lawmakers are pushing to delay the filing deadline, there’s no certainty that such measures will pass during the post-election “lame duck” session. Given the substantial fines for non-compliance, we recommend filing sooner rather than later.

How to File 

The online filing process is straightforward:

1. Visit FinCEN’s BOI E-Filing website.
2. Click on the File BOIR tab or select the Get Started button.

Need Assistance? 

The team at Canon Capital CPAs is here to answer any questions you may have about the BOI reporting requirement.

To better understand the details of this requirement, you can review FinCEN’s Small Entity Compliance Guide.