The landscape of business regulations and practices is continually evolving, and 2024 is no exception. Several significant changes are set to impact how businesses operate in the United States. Here’s what you need to know:
1. Corporate Transparency Act (CTA)
Effective from January 1, 2024, the CTA requires companies to disclose beneficial ownership information. This act aims to enhance transparency in entity structures and ownership to combat money laundering, tax fraud, and other illicit activities. Businesses formed before January 1, 2024, have until January 1, 2025, to comply with the CTA’s reporting requirements.
2. IRS Delay on Reporting Requirements
The IRS has postponed the implementation of a new $600 Form 1099-K reporting threshold for third-party payment organizations to 2024. For tax year 2023, the threshold remains at $20,000. This delay provides additional time for businesses to adapt to these new requirements.
3. Transparency in Small Business Lending
The Consumer Financial Protection Bureau (CFPB) has finalized rules to increase transparency in small business lending. These rules, effective in 2024, require financial institutions to report data on their lending practices for small businesses, including information on the race, ethnicity, and gender of business owners.
4. National Labor Relations Board’s Joint-Employer Rule
Set to come into effect on February 26, 2024, this rule expands liability for unfair labor practices. It applies only to cases filed after this date and alters the standards for determining joint-employer status from those established in 2020.
5. Minimum Wage Increases and Overtime Pay Eligibility
Over 20 states will see a minimum wage increase in 2024, with some states experiencing significant hikes. Additionally, a proposal is in place to extend overtime pay eligibility, increasing the minimum weekly salary requirement for exempt employees to $1,059 per week.
6. Avoiding Greenwashing in Marketing
With the rise of eco-conscious marketing, businesses must be wary of greenwashing – making misleading claims about the sustainability or environmental benefits of their products or services. It’s crucial for marketing claims to be supported with credible evidence to avoid legal and reputational risks.
7. OSHA Regulations Update
OSHA’s new regulations, effective from January 1, 2024, mandate establishments with 100 or more employees in high-hazard industries to submit detailed reports of workplace injuries and illnesses. This initiative aims to enhance transparency and target specific workplace hazards more effectively.
Navigating the Regulatory Landscape
As we navigate through these changes, it’s crucial for businesses to stay informed and compliant. The changing landscape presents both challenges and opportunities. Prudent Accountants can assist your business in adapting to these changes efficiently and effectively. Our expertise in regulatory compliance, tax planning, and business advisory services ensures that your business remains ahead of the curve. Connect with us to ensure your business not only meets the new standards but thrives in 2024 and beyond.
Contact Prudent Accountants for a consultation and empower your business to excel in this evolving regulatory environment.
