MANY SMALL BUSINESS OWNERS FAIL TO MEET LEGAL REQUIREMENTS PLACED ON THEM BY FEDERAL AND/OR STATE GOVERNMENTS BECAUSE THEY NEVER REALIZED THE REQUIREMENTS EXISTED. HAVING A PROFESSIONAL ASSIST YOU TO MEET YOUR LEGAL OBLIGATIONS CAN SAVE PENALTY & INTEREST FEES, AS WELL AS OTHER COSTS, TIME, AND MENTAL WELL-BEING DRAINED HAVING TO DEFEND YOURSELF. DON'T HESITATE TO CONTACT OUR OFFICE TO SCHEDULE A CONSULTATION TO DISCUSS EMPLOYER REQUIREMENTS WITH ONE OF OUR CPAS.
**NEW IN 2024** BENEFICIAL OWNERSHIP REPORTING VIA FINCEN
CORPORATIONS, LIMITED LIABILITY COMPANIES (LLCs), AND OTHER ENTITIES CREATED BY FILING DOCUMENTS WITH THE SECRETARY OF STATE OR SIMILAR OFFICE (CORPORATION COMMISSION IN ARIZONA FOR EXAMPLE) ARE NOW REQUIRED TO REPORT INFORMATION REGARDING THEIR "BENEFICIAL OWNERS" WITH THE FINANCIAL CRIMES ENFORCEMENT NETWORK (FinCEN). FinCEN IS A BUREAU OF THE US DEPARTMENT OF THE TREASURY. ENTITIES IN EXISTENCE PRIOR TO 1/1/24 MUST FILE BY 1/1/25. THOSE FORMED IN 2024 MUST FILE WITHIN 90 DAYS OF FORMATION. ENTITIES FORMED ON OR AFTER 1/1/25 WILL HAVE ONLY A 30 DAY WINDOW. IF YOU RECENTLY CREATED A BUSINESS ENTITY AND NEED HELP MEETING THIS REQUIREMENT PLEASE CONTACT OUR OFFICE TO SET A TIME TO DISCUSS IT WITH A CPA. FOR MORE INFORMATION PLEASE REVIEW OUR INFORMATION SHEET HERE.
NEW HIRE PACKETS: IF YOU HAVE A NEW EMPLOYEE PLEASE DOWNLOAD THE EMPLOYEE PACKET ABOVE. THE EMPLOYEE SHOULD COMPLETE THE FORMS W-4, A-4, AND I-9. THEY WILL ALSO NEED TO PROVIDE THEIR DRIVER'S LICENSE & SOCIAL SECURITY CARD (OR OTHER QUALIFIED DOCUMENTS) TO ENSURE THEY ARE LEGAL TO WORK IN THE U.S. THESE SHOULD BE COMPLETED AND SUBMITTED TO YOUR PAYROLL SERVICE PROVIDER ON OR BEFORE THE FIRST DAY OF WORK. IN NO CASE SHOULD EMPLOYEES BE PERMITTED TO WORK PRIOR TO COMPLETING AND SUBMITTING THESE TO THE BUSINESS OWNER.
CURRENT ARIZONA LAW REQUIRES ALL EMPLOYERS TO USE THE E-VERIFY SYSTEM TO VERIFY ELIGIBILITY FOR NEW EMPLOYEES. FAILURE COULD RESULT IN SUSPENSION OR REVOCATION OF YOUR BUSINESS LICENSE. IN ADDITION ALL NEW HIRES MUST BE REGISTERED WITH AZ NEW HIRE REPORTING CENTER. ALL EMPLOYERS SHOULD VERIFY THESE REQUIREMENTS ARE MET, BY THEMSELVES OR THIRD-PARTY PAYROLL SERVICE PROVIDERS. WE MAINTAIN AGENT REGISTRATION TO REPORT ON BEHALF OF OUR CLIENTS. IF YOU NEED HELP MEETING THESE REQUIREMENTS PLEASE CONTACT OUR OFFICE.
EFFECTIVE 1/1/24: ARIZONA MINIMUM WAGE INCREASED TO $14.35/HOUR.
ARIZONA LAW ALSO REQUIRES ALL EMPLOYERS PROVIDE EARNED PAID SICK LEAVE TO ALL EMPLOYEES. THE MINIMUM AMOUNT OF PAID SICK LEAVE REQUIRED DIFFERS DEPENDING ON THE SIZE OF THE EMPLOYER. ADDITIONAL INFORMATION AND FREQUENTLY ASKED QUESTIONS CAN BE REVIEWED HERE.
VARIOUS FEDERAL AND STATE LAWS REQUIRE EMPLOYERS TO POST PUBLIC NOTICES IN A CONSPICUOUS PLACE WHERE EMPLOYEES WILL SEE THEM. THE LIST OF REQUIRED POSTERS AND THE VERSION OF EACH POSTER CHANGE PERIODICALLY DUE TO LEGISLATION AND FORMAT MODIFICATIONS. ALL REQUIRED POSTERS ARE AVAILABLE FOR FREE DOWNLOAD FROM THE FOLLOWING WEBSITES:
ARIZONA
PAYROLL TAXES MUST BE PAID TO THE IRS, ARIZONA DEPARTMENT OF REVENUE AND ARIZONA DEPARTMENT OF ECONOMIC SECURITY ON TIME IN ORDER TO AVOID ADDITIONAL PENALTIES AND INTEREST. REGISTRATION WITH EFTPS (ELECTRONIC FEDERAL TAX PAYMENT SYSTEM) AND AZTAXES.GOV IS THE BEST WAY TO MAKE PAYROLL TAX DEPOSITS. THESE SYSTEMS ALSO PROVIDE RECEIPTS & REPORTS FOR RECORD KEEPING PURPOSES.
IN ADDITION TO MEETING EMPLOYER REQUIREMENTS BUSINESS OWNERS MUST HAVE A SYSTEM IN PLACE TO COLLECT INFORMATION AND PROVIDE INCOME TAX FORMS TO INDEPENDENT CONTRACTORS. IF YOU ARE UNSURE WHETHER AN INDIVIDUAL IS YOUR EMPLOYEE OR AN INDEPENDENT CONTRACTOR WE STRONGLY URGE YOU TO DISCUSS SPECIFICS OF YOUR CASE WITH ONE OF OUR CPAS. REVIEWS AND AUDITS THAT RESULT IN RECLASSIFICATION (FROM INDEPENDENT CONTRACTOR STATUS TO EMPLOYEE STATUS) RESULT IN VERY EXPENSIVE PENALTIES. DUE TO RECENT REFORMS IN THE UNEMPLOYMENT SYSTEM WE HAVE SEEN AN INCREASE IN THESE REVIEWS RECENTLY.
FORM W-9 IS REQUIRED FOR ALL INDEPENDENT CONTRACTORS. THIS FORM COLLECTS INFORMATION NECESSARY TO ISSUE THE REQUIRED FORMS 1099-NEC AT YEAR END.
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