Dear Client/Partner,
Winter is coming! We can help you get ready and prepare for the Corporate Income Tax filing for FY2021. This is the time to review financials and prepare for the year-end. Contact us if we can assist you!
As always in our bi-monthly digital business update, we have collected interesting topics relevant for your U.S. subsidiary, such as information about taxes, payroll, and inspiring client stories. We also like to take the opportunity to introduce you to our Compliance Specialist, Victor Tourinho.
On behalf of the entire TABS Team,
Jacob Willemsen
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U.S. Reopens to International Travel
Everyone knows it already, of course, but we still don’t want to leave unsaid that the U.S. fully reopened to many vaccinated international travelers on Monday, November 8th. The restrictions closed the U.S. to millions of people for 20 months.
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Taxes: 1099’s – Filing Deadline Approaching
The filing deadline approaches for forms 1099-MISC. This form is used to report business-related payments made during the calendar year 2021. These forms must be completed, sent to the eligible vendors/ contractors and filed, by January 31st, 2022.
To accelerate the process, please collect Form W9 from any vendors or contractors you believe will have a reportable payment. W9 Forms should be submitted to TABS by January 15 for timely preparation of Forms 1099.
TABS is happy to review your records with you to assist with this process.
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Washington’s Long Term Care Tax Deduction Starts January 2022
Starting January 1, 2022, all employees residing and/or working out of Washington State will see a new payroll tax deduction coming out of their paycheck unless they can present their employer with an exemption certificate before the new year. This payroll deduction is to fund the new Washington Cares program, which will pay Washington residents for services related to long-term care. As the first state in the nation to pass this type of law, Washington State intends to cut down on state Medicaid costs and aid older residents to age in their own homes.
Employees can opt out of the tax if they purchased private, comparable long-term insurance directly from an insurance company. To mark employees as exempt from the tax, they must present a proof of exemption form (issued by the state) to their employer. If you receive such an exemption form, please pass it along to your payroll provider, or to your Payroll Specialist at TABS if we manage your payroll.
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Auto-IRA’s: How They Work and What Actions May Be Required From You As An Employer (covers multi-state)
For those employers that do not currently have any type of retirement program in place, you may soon be required to set up an Auto-IRA through the state you have employees in. An Auto-IRA essentially requires employers to automatically enroll their employees into an Individual Retirement Account at a specific percentage so the employee may start saving towards their retirement. The employee may opt-out, but they are auto-enrolled if they do not take any action. At this time, 14 states have passed laws that will soon mandate employers to participate in a state-administered program. Of the 14 states, 3 states have already launched their program and as a small employer, you may soon be required to take action as well. Though each state’s program will look a little different, it is expected that none of the states’ programs will cost additional fees to the employer. There will however be some administration involved.
For those clients that TABS manages the US payroll for, you will be informed if and when any requirements apply to your business. For our HR Management clients, we will be setting up and administering the program for you.
For more information, please don’t hesitate to reach out to your HR representative at TABS.
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Digital Services Taxes
United States reaches an agreement with Austria, France, Italy, Spain, and the United Kingdom regarding the treatment of Digital Services Taxes (DSTs)
The Department of Treasury announced that the United States has reached an agreement with Austria, France, Italy, Spain, and the United Kingdom regarding the treatment of Digital Services Taxes (DSTs) during the interim period prior to full implementation of Pillar 1 of the Organization for Economic Co-operation and Development (OECD) agreement. Â
This agreement comes as a relief for the industries such as footwear, affected both sides of the Atlantic threatened for the 25% ad valorem tariff as part of the section 301 investigation on the DSTs.
Wonder how TABS can help your company? Contact us!
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Traineeship & Internship Programs in the U.S.
Interested to learn more about internship and traineeship programs, but have no clue where to start? Are you and/or your company based in the U.S.? Then Stage-Global is your answer!
With offices located in both Amsterdam and New York City, Stage-Global is a Dutch cultural exchange company that recruits, assists, and places both students and young professionals in internship ad trainee programs throughout the United States. For companies and businesses located in the US, it is possible to hire either international interns or trainees under the J-1 exchange program. Because of this visa category and through their exciting host partners, Stage-Global offers both short-term intern programs lasting up to six months and longer trainee programs that last up to 18 months.
Interested in hiring an intern or trainee? Then reach out to Stage-Global!
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Corporate Income Tax 2021
Income tax filings are due March 15th for some LLCs and April 15th for C-corporations (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 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.
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Meet Our Team Member Victor Tourinho
Compliance Specialist
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Victor was born in Brazil and moved to Portugal still as a child, where he completed a degree in Public Administration and Territorial Policies at the University of Lisbon. He has worked in the public and private sectors in Portugal, but with a passion for international relations decided to go abroad and served the Embassy of Portugal to the United States in 2015. After a brief return to Lisbon where he worked in private aviation, Victor moved to London to work in fintech. After spending over two years in the financial sector he has returned to the U.S. embracing a new experience with TABS Inc. in September 2019 specializing in compliance.
“I am always seeking experience and knowledge to better serve our clients in various areas. Nothing is more satisfying than seeing the companies we assist strive in the U.S. market, that is why one of the things I enjoy the most is the close contact we maintain with our clients. It makes me very proud to work in international business with such a multicultural team and have a positive impact on the professional and personal achievements of so many people all over the world.”
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Schedule your 2021 Annual Shareholder Meeting
The end of the year is quickly approaching, if you have our Corporate Secretary services and still haven’t had your Annual Shareholder Meeting (ASM) this year, please get in touch with Victor, who will be able to guide you through our online process.
We would like to remind you it is important to have an ASM in order to remain compliant, but also an opportunity to give TABS a business update so we can provide you with the best assistance.
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