Category: News and Events

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.

With the holiday season approaching, many businesses are considering how to show appreciation to their employees. While thoughtful gestures like gift cards, holiday parties, or personalized presents can boost morale, it’s essential to understand their tax implications. Depending on what you give, the IRS may classify your gift as taxable income to your employees.

Gift cards are always considered taxable income, regardless of the amount, because the IRS views them as equivalent to cash. Gift items like a company-branded mug or a holiday fruit basket may qualify as non-taxable as they are given occasionally and are relatively low in value.

Bonuses—while appreciated—are always considered taxable income, so it’s essential to plan for withholding when issuing them.

A popular option to reward your team and boost morale is to host a holiday party. Expenses for this type of event are generally non-taxable to employees since the event is infrequent and primarily for the benefit of the team.

Our tax and accounting professionals are here to help businesses navigate these IRS guidelines as they seek to show gratitude to their hard-working employees at the holidays and throughout the year.

Two of our Canon Capital Management Group team members have recently achieved significant milestones in their professional development.

We are proud of Chris and Amanda for their hard work and commitment to excellence. Please join us in congratulating them.

Chris McDonnell Achieves AI Certification for Accountants

Chris McDonnell, CPA, CAIA has earned a certification in AI for Accountants, equipping him with cutting-edge skills to leverage artificial intelligence in financial processes.

With this advanced knowledge, Chris will lead our team in offering even more innovative and efficient accounting solutions, ensuring our clients stay ahead of the curve.

Amanda Spengler Earns NACPB Certification

Amanda Spengler has achieved her Bookkeeping Certification from the National Association of Certified Public Bookkeepers.

This accomplishment highlights Amanda’s dedication to maintaining the highest standards of accuracy and integrity in managing our clients’ financial records.

These achievements reflect our ongoing dedication to the clients we are privileged to serve.

As the calendar inches closer to July 1st, 2024, employers across the nation are preparing for a significant shift in overtime regulations. The Department of Labor’s recent announcement regarding the new overtime rule has left many businesses seeking clarity on how this will impact them.

Eligibility Expansion

One of the primary objectives of the new overtime rule is to extend overtime protections to a broader segment of the workforce. Previously, employees earning below a certain salary threshold were automatically eligible for overtime pay. However, with the updated regulation, this threshold is set to increase, including more employees within its scope.

Impact on Lower-Wage Workers

Workers earning salaries below the revised threshold will see the most direct impact. As they become newly eligible for overtime pay, they stand to benefit from increased compensation for any hours worked beyond the standard 40-hour workweek.

Adjustments for Employers

Employers, on the other hand, will need to adapt their payroll and workforce management strategies to accommodate the expanded eligibility criteria. This may involve reassessing employee classifications, adjusting compensation structures, or implementing changes to work schedules to ensure compliance with the new regulations.

Industries and Sectors Affected

While the new overtime rule applies across various industries and sectors, specific industries may feel its effects more heavily than others. Sectors with more lower-wage workers, such as retail, hospitality, and healthcare, will likely see more employees impacted by the rule change.

Our Payroll Professionals Are Here to Help

Our Payroll team is here to help you navigate the payroll-focused intricacies of this new overtime rule with confidence. Call 215-723-4881 or contact us online.

Were your employees’ tax return results not what they expected this year? Many taxpayers have had the unpleasant surprise of a tax bill instead of the anticipated refund. This is likely due to not having enough funds withheld from each paycheck.

That’s why we recommend a paycheck check-up at least once a year, whether completed at the start of the calendar year or right now, to ensure they’re withholding the right amount for the remainder of this year. Share this paycheck calculator on the IRS website to help them run their numbers and make any necessary adjustments to their W4 form.

Questions? We are happy to help. Give us a call at 215-723-4881.

What does the future hold for global equities? Here are five reasons they may defy the odds.

If you have questions about this information or would like to discuss your portfolio, we are happy to help. Call us at 215-723-4881.

Intuit has recently announced the eventual phasing out of the desktop versions of its QuickBooks accounting software. After July 31, 2024, Intuit will no longer issue new subscriptions to these QuickBooks Desktop products:

• QuickBooks Desktop Pro Plus
• QuickBooks Desktop Premier Plus
• QuickBooks Desktop Mac Plus
• QuickBooks Desktop Enhanced Payroll

Existing users of these products can continue renewing their subscriptions and will receive support and security updates after July 31, 2024. The final sunset date has not yet been shared by Intuit.

 Why move to QuickBooks Online now?

We recommend you make the move to QuickBooks Online sooner rather than continuing with your Desktop version. The advantages of working in cloud-based accounting software outweigh the learning curve.

Increased efficiency

With available online automated accounting services, the information in QuickBooks Online is timely, accurate, and always at hand. From an accounting perspective, this gives you more time to work on your business and allows your CPA to be involved at a higher level to provide guidance as needed.

Increased protection

Using the online version of QuickBooks gives you greater protection from these cyber threats:

• Data breaches: older software has inadequate safeguards to detect malicious behavior.
• Fines and denied insurance claims: Cyber Insurance onboarding questionnaires will ask if you are running any software that would be considered “end of support.” Likewise, government compliance standards all require affirming a statement that you are not running any end-of-life or end-of-support software.
• Extended downtime: due to lack of vendor support as well as data breach or corruption

A cloud-hosted application like QuickBooks Online will avoid these risks, providing:

• New features and security enhancements
• Typically have a 99.8% uptime guarantee
• Known and consistent costs for budgeting purposes
• Hardware requirements are minimal.
• Changes that are spread out over time.

Added Benefits

Making the transition from QuickBooks Desktop to QuickBooks Online is a seamless process. After creating the QuickBooks Online account, your most recent desktop data file would be migrated to the new platform. This process will take approximately 24 hours. It may take more or less time, depending on the size of the file being migrated.

After that, you can start enjoying the benefits of using cloud-based software:

• Secured Storage that Remains Compliant
• Access From Anywhere
• Faster Processing
• Centralized Tasks
• Real Time Transactions
• Integration
• Access to mobile apps for mileage, expenses, etc.

Where do we go from here?

If you’d like to learn more about using QuickBooks Online, our recent webinar provides greater detail in preparing for this change. We recommend viewing the webinar in its entirety.

One source, many services, the right decision.

If you have questions about next steps or if we can be of service, please contact us online or call 215-723-4881.