08 Dec
Member News

TABS | What’s New – December

With winter approaching, we are delighted to present our December business update. In this edition, aligned with our bi-monthly tradition, we have curated a range of insightful topics tailored for your U.S. subsidiary. As we gear up for 2024, we have updates relevant to the upcoming year.Topics covered:Sales Tax Rate Changes | Payroll & Benefits: Update on 2024 IRS Limits & Navigating Health Insurance Landscape | Navigating End-of-Year Tax Prep | Update on Beneficial Ownership Reporting | FDA News | Client Success Story | Action Required for Timely Sharefile Updates | Annual Relationship Updates | Client & Partner Events in NYC and London | Collaboration Avans Hogeschool | Roundtable Make it Big in the USA.

Sales Tax Rate Changes 2024
Effective January 1st, 2024, sales tax rates will be updated. This date holds significance for many states as they review and adjust their sales tax rates or exemptions for services and goods.It’s important to note that there isn’t a centralized overview detailing each state’s sales tax changes. Instead, each state’s Department of Revenue will publish an article outlining the specific state and local sales tax changes.For businesses using sales tax automation software such as Avalara, Shopify, QuickBooks, etc., these rate changes will be automatically reflected in your system as you collect sales tax. However, if you are not utilizing software to determine your sales tax rate (or whether your transactions are subject to sales tax at all), we recommend contacting our TABS sales tax team to ensure that the upcoming changes are properly integrated into your system.
Payroll & Benefits: Update on 2024 IRS Limits & Navigating Health Insurance Landscape

As we almost kick off 2024, we want to inform you about key developments that may impact your payroll and benefits. As a quick reminder, last year saw a notable average price increase of 10% in insurance premiums. Our research found that rates will continue to increase around that same percentage, though some companies noted that healthcare costs are rising above inflation. Long-covid symptoms also affect increasing premiums.IRS Limits for Payroll and Benefits in 2024The IRS has announced several changes to payroll and benefits limits for the year. These limits may influence various aspects of your staff’s financial planning, including retirement contributions, health savings and flexible spending accounts, and more. Please keep these changes in mind when it comes to payroll taxes and benefits; if TABS manages your payroll and benefits, this will be processed automatically.The Shifting Landscape of Health Insurance PremiumsSimilar to last year, small-group employers may continue to experience shifts in insurance premiums. Factors such as industry and group performance, usage, and market dynamics contribute to these adjustments. As noted above, inflation is a significant factor in the rising of healthcare costs, which affects group insurance rates.Considering these trends, we encourage you to reassess your current plan offerings. Our dedicated HR Team at TABS is ready to assist with any inquiries or reviews of your benefits. Partnering with our trusted brokers, we can help tailor the best solution for your group – whether it involves a plan adjustment, a switch in insurance carriers, exploring a PEO, or considering an Individual Healthcare Arrangement.Navigating the Path ForwardIncreasing employee awareness about the importance of affordable insurance benefits is more crucial than ever. Inflation continues to impact budgets, and understanding these dynamics is key to ensuring your benefits package aligns seamlessly with your team’s needs.Keep in mind that these re-evaluation processes can take considerable time. Reach out to our HR Team in time for personalized assistance. We’re here to navigate these changes together, offering solutions that make the most sense for you and your employees.

Navigating End-of-Year Tax Prep: Plan Ahead for a Smooth Filing Season

 

As we approach the close of the year, it’s strategic to gear up for the upcoming tax season. Mark your calendars – January 31, 2024, is the first crucial deadline. This is the time to ensure your employees receive their W-2s, and if you’ve paid contractors or vendors over $600, it’s time to provide them with 1099s. Here’s a heads-up: gathering not just their tax ID but also updated addresses is crucial. If you haven’t got this info yet, initiating the request now is a wise move. Our experience shows that some contractors or vendors may take time to respond, so early action can save you from potential delays.Remember, timely filing of 1099s is essential to avoid penalties. Our team is here to help. Let’s make sure your year-end preparations lead to a smooth and penalty-free filing season. Please note that the IRS on November 21st announced  a further transition period to lower $600 Form 1099-K reporting threshold for third-party settlement organizations. More info here.

Income tax filings are due March 15th for some LLCs and April 15th for C-corporations (most corporations with foreign owners). TABS can assist your company with the preparation of figures and documentation required for this filing. We can work with our network of third-party CPAs to complete the filing or a CPA of your choice. We can provide support to file on time or request a 6-month extension. (Extended deadline: September/ October 15 respectively.)
The request for an extension must be filed by the original deadline and must include payment of any tax liabilities. It will be deemed invalid retroactively if it later turns out that the tax liability was not paid at least 90% by the original deadline (March/ April 15). This can result in significant penalties.
Update on Beneficial Ownership Reporting
Navigating the Corporate Transparence Act Update: What You Need to KnowAs we are moving towards the new year, businesses across the United States and foreign entities registered to operate in any U.S. state are gearing up for a significant change in their reporting obligations.The Corporate Transparency Act, set to roll out its updated reporting requirements on January 1, 2024, brings forth a transformative landscape for corporate transparency. In this article, we’ll delve into the key aspects of the Act’s latest update, shedding light on the implications and intricacies that businesses must navigate to ensure compliance in the evolving regulatory environment.Stay tuned to stay ahead in understanding and adapting to the changes that lie ahead and read the complete update on our website.
FDA News

 

Medical DevicesFY 2024 annual registration is now open, and you need to re-register your facility by December 31st, 2023. Every year, from October 1 to December 31,  a Medical Devices establishment marketing its devices in the USA has to pay the annual registration user fee and complete the establishment’s annual registration for the upcoming Fiscal Year. Failure to complete the annual registration will result in the establishment’s registration being removed from the public registration and listing database. TABS FDA Team can assist you with the registration and act as the agent for your foreign establishment.Cosmetics: MoCRA update: Delayed Enforcement Announced for MoCRAFDA has announced that it does not intend to enforce the requirements related to cosmetic product facility registration and cosmetic product listing for an additional six months after the December 29, 2023, statutory deadline or until July 1, 2024, to provide regulated industry additional time to comply with these requirements.Please contact our FDA team for more information regarding MoCRA requirements and how they apply to your company.
Action Required for Timely Sharefile Updates

 

Sharefile Reminder for Clients
TABS receives, scans, and uploads your mail through the TABS ShareFile portal. Designated users for your company’s ShareFile folders are advised to log in regularly to review and download these documents. Our ShareFile system is not intended for long-term storage, and it is crucial that you retrieve important information in a timely manner. To streamline our operations, physical mail is routinely destroyed after 6 months, and digital copies are deleted after 1 year. Please be aware of these timelines and plan accordingly.While our team may proactively reach out to notify you of mail we deem as important and requiring immediate attention, this should not replace your regular checks on the ShareFile portal. It remains the responsibility of the client to monitor their folders for any potentially significant mail, like tax due notices. This is especially crucial for clients utilizing our address and mail handling, as well as CoSec services.
Annual Relationship Updates

As a part of its ongoing commitment to excel in relationship management and customer satisfaction, TABS introduces the concept of Annual Relationship Updates (ARU) as of January 2024. With the ARU, TABS proactively plans a (bi)annual online meeting or call with all of its clients individually to check in on their current business and see whether the current setup of their back office still fits their needs.By doing so, TABS aims to tackle potential issues much earlier and further strengthen our goal to be your trusted advisor when doing business in the U.S. The ARU is free of charge and, on average, takes about 30 to 60 minutes to complete. From our clients’ side, there’s nothing you need to prepare in advance, and TABS will reach out to you in due time to schedule your ARU.Please get in touch with our Relations team if you have any questions about this topic.

Collaboration Avans Hogeschool

TABS proudly announces that we are teaming up with Avans Hogeschool for its International Business study. Not only do we provide research projects for their students, but we also have work experience in our offices in Eindhoven and New York.If your company is (on the brink of) expanding in the USA and you could use help in the form of research and a fresh look by a student, we’re more than happy to get you in touch with the study coordinators. Different options within the curriculum could fit the needs that you have in your company.Would you like to know more and get in touch with Avans? Please get in touch with our Relations team.

For more information, please contact TABS Team here.
Compliments of TABS Inc. – a member of the EACCNY.