Sullivan & Sullivan

https://www.dol.gov/agencies/whd/government-contracts/small-entity-compliance-guide

Final rule is issued for Employee vs Independent Contractor law.

Small Entity Compliance Guide The .gov means it’s official. Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

We are looking for help for this coming up tax season. If interested please call 810-664-8474.

Thank you.

Federal Proposal to Restrict Independent
Contractor Definition Has Negative Impact
You and Your Affected Small Business Clients Need Voice Opposition Now

Please forward this to your affected clients!

November 7, 2022 - There’s a new proposed rule at the Department of Labor that will significantly limit small businesses operating as independent contractors and small businesses who use independent contractors. It changes clear and logical rules and makes them subjective and restrictive.

The Current Rule That Supports Entrepreneurship:

The current rule stipulates two core factors that were key to determining the legal use of independent contractor status, which are simple and straightforward. It also included three more minor factors that could be used to determine whether a worker can operate as an independent contractor or must be classified as an employee. Essentially, the current rule considers the nature and degree of control over the work and the worker’s opportunity for profit or loss based on initiative and/or investment. In practice, the current rule ca be as simple as saying workers who own their own businesses and can work for competing companies are able to operate as independent contractors.

The Anti-Small Business Proposed Rule:

The proposed rule rescinds the earlier rule and replaces it with a complicated multi-factor totality of the circumstances test where the factors do not have a predetermined weight and each factor is given full consideration. In other words, the standards for qualification of independent contractor statues are much more extensive, often subjective, and difficult to meet.

2022-21454.pdf (govinfo.gov)

This proposal would establish a more overreaching “economic reality test” than before. The subjectivity of these factors, coupled with the fact that any one of the half dozen tests would disqualify entrepreneurs from being their own boss, exerts excessive restrictions on small businesses operating as independent contractors and small businesses who wish to utilize the services of independent contractors. Read More

Help SBAM and the Small Business
Community Defeat This Proposal

The Small Business Association of Michigan is asking business owners to weigh in with the Department of Labor’s public comment process. This negatively impacts 59 million workers - about 1/3 of the US workforce - who did at least some contract or freelance work last year. The gig economy is a powerful entrepreneurial force. It should not be smothered by the federal bureaucracy.

Here is suggested language for your comment:

The Department of Labor’s proposed rule change under the Fair Labor Standards Act (FLSA) will have a profoundly negative impact on many small businesses. The proposal limits the ability of entrepreneurs to start and grow their businesses as independent contractors or use independent contractors. The description of this proposed rule change as a “clarification” of existing law is misleading when, in reality, it represents a radical departure from current standards that will harm millions of small businesses.

The proposed rule uses a needlessly complicated and subjective “multi-factor totality of the circumstances” test where the freedom for entrepreneurs to operate as independent contractors is significantly diminished. In other words, the standards for qualification of independent contractor status are extensive, often subjective, and much more difficult to meet. Independent contractor criteria should be clear and objective, without reliance on bureaucratic judgment calls and gray areas.

The current independent contractor standards have served our economy and workers well and have been the basis for many entrepreneurs starting their own businesses. Furthermore, limiting the instances where small businesses can use independent contractors will be detrimental to entrepreneurs already struggling to find employees.

I urge you to withdraw this harmful proposed rule change.

Click here to submit your comment.

Thank you for your consideration in this important matter.

Be careful where you invest your money. See the attached article.

How Three Investment Firms Are Turning Companies Like Disney Woke (And What You Can Do To Fight Back) — Analysis —How Three Investment Firms Are Turning Companies Like Disney Woke (And What You Can Do To Fight Back)By Megan BashamDailyWire.comFacebookTwitterMailPerhaps no political shift in recent years has had as significant an impact on our culture as major corporations wading into political ...

Tax Season Begins January 24. IRS will accept individual returns.

According to the IRS, Advance Child Tax Credit (ACTC), Letter 6419
AND
Economic Impact Payment (EIP), Letter 6475 will be issued soon!
We need these letters to prepare your taxes for 2021.

IRS issues standard mileage rates for 2022
The IRS issued the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

58.5 cents per mile driven for business use, up 2.5 cents from 2021,
18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from 2021 and
14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2021.

Why I’ll Always Be Optimistic About the Market | Dimensional Fund Advisors Since the beginning of the COVID pandemic, my beliefs in markets have been tested more than ever. And they’ve held up.

: What employers need to know when classifying workers as employees or independent contractors https://go.usa.gov/xMBNq

What employers need to know when classifying workers as employees or independent contractors | Internal Revenue Service Tax Tip 2021-140, September 22, 2021

MI House Passes Unborn Child Tax Exemption
On June 23 the Michigan House voted 58 to 52 for House Bill 4644, which would create a $200 tax exemption for parents of unborn children. Identical legislation in the Michigan Senate is awaiting consideration.

In order to qualify for the exemption, the pregnancy must be at least 12 weeks along by the end of the year, and there must be a note from a doctor confirming the pregnancy.

Prenatal care has real costs associated with it. For some women, prenatal care is delayed due to financial difficulties or hesitancy to engage with the medical profession. By allowing parents to claim their unborn child as an exemption on their income tax returns, it provides an incentive to seek prenatal care in the first trimester and hopefully improve pregnancy and birth outcomes.

While the unborn child is not granted full protection under the law, unborn children are routinely given legal recognition in some areas. Our Prenatal Protection Act makes it a crime to harm the child in an assault against a pregnant woman. The unborn child can be a potential heir of an estate, and assigned a guardian ad litem in court proceedings. Recognition of an unborn child for the purpose of this tax exemption falls in line with these other areas of law.

Sadly, the vote was 100% on party lines. Abortion supporters routinely insult prolife people by claiming they don't really care about the pregnant woman (or the child after birth). And yet, every time prolife legislators do anything to actually provide support, the abortion supporters loudly object.

Many people think talking to the IRS or their tax professional is the best way to find out when they will get their refund. The best way to check the status of a refund is online through the Where's My Refund? tool or the IRS2Go app.

Taxpayers can call the automated refund hotline at 800-829-1954. This hotline has the same information as Where's My Refund? and IRS telephone assistors. There is no need to call the IRS unless Where's My Refund? says to do so.

Ordering a tax transcript is a secret way to get a refund date

Doing so will not help taxpayers find out when they will get their refund. Where's My Refund? tells the taxpayer their tax return has been received and if the IRS has approved or sent the refund.

Where's My Refund? must be wrong because there's no deposit date yet

Updates to Where's My Refund? ‎on both IRS.gov and the IRS2Go mobile app are made once a day. These updates usually occur overnight. Even though the IRS issues most refunds in less than 21 days, it's possible a refund may take longer. If the IRS needs more information to process a tax return, the agency will contact the taxpayer by mail. Taxpayers should also consider the time it takes for the banks to post the refund to the taxpayer's account. People waiting for a refund in the mail should plan for the time it takes a check to arrive.

2021 tax filing season set to begin February 12

The IRS will begin accepting and processing 2020 tax year returns on Friday, Feb.12, 2021.

Huge win with the new stimulus package for business that received a PPP loan this year.

Let’s take a look at updates to the previous PPP program, specifically, deductibility of forgiven loan funds and business expenses paid using those funds. This aspect of the original PPP has been one of contention between borrowers, their advisors, and the IRS since earlier this summer when the agency announced that regular, typically deductible expenses paid for in 2020 by forgiven loan funds would not be deductible. The new bill rectifies this by clarifying that original and subsequent (new) PPP loan forgiveness is non-taxable and business expenses covered by PPP loan funds are tax deductible. This is a huge win for borrowers1.

Give us a call early to help with your business taxes this year.

Here's why a nightmare tax season is ahead for small businesses Though the CARES Act offered small businesses a lifeline, but it's going to come with tax complexity next spring. It's time to hire an expert.

Finally! PPP loan forgiveness for loans under $50,000 just got easier and less burdensome for small businesses.

SBA simplifies PPP forgiveness for small loans The Small Business Administration (SBA) and Treasury Department announced that they are simplifying the loan forgiveness application for Paycheck Protection Program (PPP) loans under $50,000.

We will be closed this Friday June 12th

Make sure to come in soon to drop off your taxes. July 15th deadline is fast approaching.

We are open to the public. Lapeer office hours Monday - Friday 9:00 - 5:00.
North Branch hours Tuesday and Thursday 9:00 - 4:30 and Wednesday 12:30 - 5:30.

Happy Easter

The IRS is creating a tool to enter direct deposit information for the stimulus check if you owed when you filed your taxes or if you requested a paper check. Visit irs.gov.

Coming next week: Get My Payment shows Economic Impact Payment date, helps with direct deposit

To help everyone check on the status of their payments, the IRS is building a second new tool expected to be available for use by April 17. Get My Payment will provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them.

An additional feature on Get My Payment will allow eligible people a chance to provide their bank account information so they can receive their payment more quickly rather than waiting for a paper check. This feature will be unavailable if the Economic Impact Payment has already been scheduled for delivery.

Please share this information via social media:
See the latest information on Economic Impact Payments: No action
needed by most people at this time. See www.irs.gov/coronavirus
and announce that the distribution of economic impact
payments will begin in the next three weeks with no action required for most
people. www.irs.gov/coronavirus
People not typically required to file a tax return can still receive the
economic impact payment. Learn how at: www.irs.gov/coronavirus

Coronavirus Tax Relief | Internal Revenue Service To explain the tax relief for those affected by coronavirus.

This may help some of the small businesses out there during this COVID19 crisis.

$350 billion set aside for 'Paycheck Protection Program' - any small company can apply The federal government's COVID-19 stimulus package includes a $350 billion forgivable loan program intended to save jobs.

The State of Michigan and all cities in Michigan extended the deadline to file your 2019 income tax returns to July 2020. No payments due until July 2020. No penalty and interest will be charged.

https://www.michigan.gov/whitmer/0,9309,7-387-90499_90705-523380--,00.html

Whitmer - Executive Order 2020-26 (COVID-19) Gov. Gretchen Whitmer -

The Internal Revenue Service today has clarified that the deadline for making Individual Retirement Account and Health Savings Account contributions for the 2019 tax year has been extended to July 15, 2020. That’s the new deadline for filing and paying taxes for the 2019 tax year, pushed back from April 15, 2020, as COVID-19 continues to impact the United States.

DUE TO THE EXECUTIVE ORDER ISSUED BY
GOVERNOR WHITMER WE ARE CLOSED TO THE PUBLIC UNTIL THE EXECUTIVE ORDER IS LIFTED. THE IRS EXTENDED THE DEADLINE TO FILE AND PAY TAXES
TO JULY 15TH. WE CAN BE REACHED AT
810-664-8474 OR [email protected]
WE WILL STILL BE SERVICING OUR PAYROLL CLIENTS THAT REMAIN OPEN.

Michiganders are told to stay in their homes unless they’re a part of a "critical infrastructure workforce, engaged in an outdoor activity, or performing tasks necessary to the health and safety of themselves or their family, like going to the hospital or grocery store."

https://www.cnbc.com/2020/03/20/ccoronavirus-mnuchin-says-irs-will-move-tax-filing-deadline-to-july-15.html

IRS extends tax filing deadline to July 15 as coronavirus spreads, Mnuchin says President Donald Trump ordered the IRS federal income tax filing extension to help deal with the coronavirus pandemic's economic fallout, Treasury Secretary Steven Mnuchin said.

Happy St. Patrick's Day

Happy St. Patrick's Day!!!

https://www.michigan.gov/coronavirus/0,9753,7-406-98163-521770--,00.html

Workers effected by the coronavirus can file for unemployment benefits.

Business will have access to a small business loan with low interest rates to help get thru this difficult time.

Coronavirus - Governor Whitmer Expands Unemployment Benefits for Michigan Workers Description: Coronavirus -