In 2024, small businesses are required to register with the Financial Crimes Enforcement Network (FinCEN) due to the Corporate Transparency Act passed in 2021. Aimed at uncovering shell companies and preventing money laundering, this act mandates personal information disclosure for businesses without exemptions. Despite legal challenges, the regulation comes into effect in 2024, with extended deadlines for existing businesses (now January 1, 2025). Failure to comply could result in penalties up to $10,000.
Relief on Reporting Digital Transactions
The Internal Revenue Service (IRS) has granted a reprieve for businesses from reporting payments over $600 via third-party providers for the 2023 and 2024 tax years. Originally part of the American Rescue Act, the reporting threshold is planned to be $5,000 in 2024. The delay was enacted after feedback to prevent confusion, according to IRS Commissioner Danny Werfel.
New Reporting Requirement for Small Business Loans
To address discrimination and enhance transparency in the loan process, the Consumer Financial Protection Bureau (CFPB) has mandated banks to report demographics and income of small business loan applicants. However, small business advocacy groups argue that this will create additional paperwork, increase litigation risks, and impede the loan process. Litigation has temporarily stayed compliance deadlines, making it a crucial development to monitor in 2024.
National Labor Relations Board Joint-Employer Rule: Expanding Liabilities
The National Labor Relations Board’s revised joint-employer rule broadens the definition, holding companies jointly liable for certain employee decisions. Applicable to most private-sector businesses under the National Labor Relations Act, this rule extends beyond franchises. Small businesses should be aware of increased liabilities for unfair labor practices in labor relations, effective since October.
