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Welcome to 2024. Let’s look at what’s new for IRS mileage rates, your form W4, and the minimum wage.

IRS Mileage Updates for 2024

The IRS issued new standard mileage rates taking effect starting January 1, 2024:

• 67 cents for every mile driven for business use (an increase of 1.5 cents from 2023)
• 21 cents for every mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces (a one-cent decrease from 2023)
• 14 cents for every mile driven in service of charitable organizations (rate is unchanged from 2023)

Avoid the guessing game and consider using an app like MileIQ to keep track of your mileage throughout the year.

Check Your W4

It’s always a good idea to start each new year with a Paycheck Check-up to make sure your withholdings are set at the appropriate level. Doing so will help avoid any unpleasant surprises at tax time. Download the 2024 form W4 here.

Minimum Wage Updates for People Employed in New Jersey and Delaware

The minimum wage for qualifying employees in New Jersey will increase from $14.13 to $15.13 per hour. Consult this resource from the New Jersey Department of Labor for further information.

The minimum hourly wage in Delaware continues its incremental increase, with the 2024 amount increasing from $11.75 to $13.25, with continued exemptions for employees working in the following areas:

• Agriculture
• Domestic service in private households
• United States 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 working for non-profit summer camps
• Inmates in Department of Correction work programs

The protocol for tipped employees also remains as follows:

“The minimum cash wage payable to employees who receive tips is $2.23 per hour. Tips may not be taken or retained by an employer except as required by law. Tip pooling is permitted (under certain circumstances) in an amount not to exceed 15% of the actual tips received by the employee.”

We’re Here to Help

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.

‘Tis the season for our annual Operation Christmas Child project. Members of our Canon team spent their lunch breaks participating in a shoebox stuffing party. We packed 48 total boxes of toys, necessities, and other surprises to delight children in need this holiday season. Special thanks to Linda Covel from our Payroll and CPA business units who not only set up our project, but she also serves year-round as a volunteer for Operation Christmas Child.

Intuit, the owner of QuickBooks, is accelerating the sunset of QuickBooks Desktop versions. This will have a major impact over the coming year on anyone using these desktop versions of the software.

Please plan to join us Thursday, January 11, 2024, when Canon Capital team members Brent Thompson, Craig Covington, and Cherie Strozzieri will present QuickBooks Desktop users with options for this transition, including:

• Making the move from QuickBooks Desktop to QuickBooks Online.
• The transition, functionality, and integration of QuickBooks Online and the future of efficient, automated, accounting services.
• Latest trends in accounting program integration and automated accounting services.
• The broader technical implications of online security, acceptable use policies, and business continuity issues that come with utilizing online programs.

This presentation is not exclusive to Canon Capital clients. Please feel free to share this opportunity with those who you feel will benefit from this information.

If you are a Canon Capital client, we ask that you please consult with a member of our Canon Capital team prior to making any changes to your current QuickBooks set-up so we can ensure a smooth transition.

Register for the webinar here. The registration deadline is Tuesday, January 9, 2024. After registering, you will receive a confirmation email containing information about joining the meeting.

The IRS recently announced their annual inflation adjustments for the tax year 2024. These changes include updates to the standard deduction and tax brackets.

Standard Deduction

The standard deduction will rise for both single filers and married couples filing jointly:

• Married Couples Filing Jointly: increase from $27,700 to $29,200 ($1,500 increase)
• Single Taxpayers and Married Individuals filing separately: increase from $13,850 to $14,600 ($750 increase)

Tax Brackets

The IRS made the following adjustments to offset inflation so that taxpayers are not placed into higher tax brackets simply due to a rise in income.

10% Bracket
Single filers: taxable income of $11,600 or less
Married couples filing jointly: taxable of $23,200 or less

12% Bracket
Single filers: taxable income between $11,601 and $47,149
Married couples filing jointly: taxable income between $23,201 and $94,299

22% Bracket
Single filers: taxable income between $47,150 and $100,524
Married couples filing jointly: taxable income between $94,300 and $201,049

24% Bracket
Single filers: taxable income between $100,525 and $191,949
Married couples filing jointly: taxable income between $201,050 and $383,899

32% Bracket
Single filers: taxable income between $191,950 and $243,724
Married couples filing jointly: taxable income between $383,899 and $487,449

35% Bracket
Single filers: taxable income between $243,725 and $609,349
Married couples filing jointly: taxable income between $487,450 and $731,199

The top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).

Earned Income Tax Credit

The maximum Earned Income Tax Credit for tax year 2024 for those qualifying taxpayers with three or more qualifying children is $7,830. This is an increase of $400 from tax year 2023.

One source, many services, the right decision.

If you have questions specific to your situation, we’re here to help. Call us at 215-723-4881 or contact us online.

Walk through any retail store and it feels like we are in a rush to the finish line for 2023.

While we don’t want to fast forward through the calendar, we do want to make you aware of new electronic filing requirements taking effect January 1, 2024.

If you file W-2, 1099, or similar forms for the tax year 2023 and you are filing ten or more total forms, they must be filed electronically. This is the new requirement no matter if you are filing a single type of form or a combination of the forms that totals ten or more (e.g., seven W-2s and 3 1099s). Up until this change, the minimum threshold to trigger the e-filing requirement has been 250 forms.

We urge you to begin the registration process in November, because completion can take up to two weeks. Click here to get started.

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

Introducing IM Investing, a new digital wealth management platform from Canon Capital Investment Advisory.

This new tool provides clients with a hybrid approach to investing, allowing flexible, on-demand service while also benefiting from a certified research team.

Curious if IM Investing is right for you? Email us or call 215-723-4881.

Watch this short video to learn more.

We are proud to announce that Canon Capital Investment Advisory has achieved certification for the sixteenth consecutive year from the Centre for Fiduciary Excellence (CEFEX), a division of Broadridge Fi360 Solutions (Broadridge). This ensures Canon Capital Wealth Management’s continued place among an elite group of investment advisory firms certified in this global program.

Dr. Peter Roland, Managing Director of Canon Capital Investment Advisory said, “We are honored to receive the CEFEX certification which demonstrates our commitment to providing the highest level of fiduciary-based wealth management services to meet the needs of our clients.”

This certification is granted only to firms demonstrating adherence to fiduciary best practices. Canon Capital Investment Advisory earned this honor once again following a rigorous, multi-month audit and certification process guided by the “Prudent Practices for Investment Advisors,” an industry-recognized handbook that is grounded in law, regulation, and professional best practices.

CEFEX certification helps determine the trustworthiness of investment fiduciaries, providing an independent recognition of a firm’s conformity to a defined Standard of Practice as described in the handbook “Prudent Practices for Investment Advisors.” More information about the CEFEX designation is available via this brief video.

Canon Capital Investment Advisory is certified for wealth management services to high-net-worth clients, ERISA company sponsored retirement plans, foundations, and trusts. Canon Capital Investment Advisory’s certification is registered and can be viewed at CEFEX.org.

CEFEX certification standards are substantiated by legislation, case law and regulatory opinion letters from the Employee Retirement Income Security Act (ERISA), the Investment Advisers Act of 1940, the Uniform Prudent Investor Act (UPIA), the Uniform Prudent Management of Institutional Funds Act (UPMIFA) and the Uniform Management of Public Employee Retirement Systems Act (UMPERSA) in the U.S.  A full copy of the standard can be downloaded from Broadridge at www.fi360.com/cefex.