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Dear Client/Business Partner,

This time in our bi-monthly digital business update, we have collected interesting topics relevant to your U.S. subsidiary, such as information about taxes, legislation, HR matters, how to prevent check fraud, and interesting events where you can meet us. We also like to take the opportunity to put the spotlight on Carmen Munoz, VP Business Development & FDA Specialist, and working at TABS since 2017.

Please note that our offices will be closed 1-4 November due to a team strategy offsite, in which we will discuss the next steps in the development of TABS Inc. We appreciate your understanding and patience during this time. Our normal response times will be slowed which includes, but is not limited to, responding to emails. We are taking steps to ensure that mail and check handling will proceed as normal during this time. Services will return to normal on 7 November.

On behalf of the entire TABS Team,
Jacob Willemsen

New Beneficial Ownership Reporting Requirements

After much anticipation, on 29 September 2022, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued its Final Rule implementing the CTA’s requirements for the reporting of beneficial ownership and company applicant information. The reporting rule is one of three rulemakings planned to implement the CTA.

Generally speaking and as a quick recap, the purposes for enacting the CTA was to protect U.S. national security, strengthen the integrity and transparency of the U.S. financial systems and curb illicit activities and money laundering. The rule will require most corporations, limited liability companies, and other entities created in or registered to do business in the United States to report information about their beneficial owners—the persons who ultimately own or control the company, to FinCEN.

To prepare for reporting under the Corporate Transparency Act, companies need to develop policies and procedures to determine their reporting obligations and to identify beneficial owners, company applicants, and third parties who may need to be included in such reporting. Companies will also need to determine how to obtain and maintain the information that is required to be reported without violating any right to privacy statutes or laws (e.g. GDPR).

Timely file your 1099’s

It’s not too early to begin preparing for next year’s tax season. You should note that the first deadline is January 31, 2023. This is the date by which your employees need to be provided with their W-2’s and contractors or vendors to whom you have paid more than $600 need to be provided with 1099’s. For this, you will not only need their tax ID but also their updated address information. If you don’t currently have this information, you should begin to request it as soon as possible; in our experience, some contractors or vendors are slow to respond and may need to be pursued at length before you receive the required information. Failure to timely file a 1099 can result in penalties.

If you would like additional information or assistance, or if you have other tax-related questions, please 

contact our tax support officers.

Minimum Wage Rises in Several States and Cities

The economic outlook for 2023 indicates that high inflation will persist into next year. As of September, seven states have announced they are increasing the state’s minimum wage effective January 1, 2023, due to the drastic change in the cost of living. It is expected that other states and/or cities will follow suit. July already brought several changes to the minimum wage law in certain cities across the US. Along with rising healthcare costs (see our previous article), wage increases are at an all-time high.
This should also be taken into consideration while recruiting for open positions, current salary benchmarking tools may not be as up-to-date. More information on how inflation is affecting minimum wage can be found here.

10 Ways to Prevent Check Fraud

Check fraud is a massive issue in the United States for many incoming European businesses and can be a culture shock for many. The Covid-19 pandemic has contributed to the decline of check use, but it is still a vital currency, and most businesses cannot afford to decline checks. Luckily for you, TABS has come up with its top ten tips on avoiding check fraud.

While fraud is persistent in all walks of life, corporations are often a routine target for scammers. The United States contains the same trickery as Europe, adding one major factor: checks. The American Bankers Association found that attempted check fraud in 2019 was 15.1 billion. Banks prevented 91% of this fraud, but the final 9% was tallied at 1.3 billion. Check fraud is undeniably a pressing issue in the United States, often underestimated by European enterprises. Companies breaking into the U.S. market want to make it as easy as possible for clients to do business. This often means that companies cannot afford to deny checks as payment. COVID has helped to accelerate the phasing out of checks, but the United States won’t be there for another couple of years, so corporations better learn how to reduce the risks that come with checks.

While this article won’t delve into the complexities of why checks are still prevalent in the U.S., it will focus on preventing the fraud that comes with them. For these reasons, these ten proposed safeguards will focus on corporate check fraud.

How the New Inflation Reduction Act Can Help Your Company

The United States just passed the Inflation Reduction Act (IRA), the most significant climate bill in 50 years. However, like most U.S. bills, the climate is not the only topic addressed. Incoming European companies need to know about new specific changes to U.S. tax laws and to understand how the bill is creating sweeping changes to the green energy and pharma sectors.

The Inflation Reduction Act (IRA) has received significant press for its actions on climate and healthcare. Many incoming or expanded European businesses will want to know how the Act will affect them. The green energy sector and foreign companies that utilize R&D on U.S. soil are the primary beneficiaries. The bill will provide benefits to most corporations as it levies higher taxes only on those companies worth a billion dollars or more. This bill is a boon for incoming business; some more than others, but a boon, nonetheless.

Time to Renew FDA Food Facility Registrations

The FDA (Food and Drug Administration) requires registered food and beverage facilities to renew their registrations by December 31st. Our specialized FDA-team can help you with the biannual renewal of your facility registration. Contact us or schedule a free 15-minute call.

TABS Office Closed 1-4 November

Please be informed that due to a team strategy offsite, in which we will discuss the next steps in the development of TABS Inc, we will be closed from 1 to 4 November 2022 (Tuesday to Friday). We appreciate your understanding and patience during this time. Our normal response times will be slowed which includes, but is not limited to, responding to emails. We are taking steps to ensure that mail and check handling will proceed as normal during this time. Services will return to normal on 7 November.
Meet us at the following events in the Netherlands in November and December.
Keep an eye out on our LinkedIn channel for announcements with all relevant information and registration links.

A Smooth Expansion to the USA

Practical, tax, and legal aspects of doing business in the U.S.
– Monday, November 28th, in Friesland – for entrepreneurs in the North of the Netherlands
– Tuesday, November 29th, in Enschede – for entrepreneurs in the East of the Netherlands
– Thursday, December 1st, location tbd – for entrepreneurs in the South of the Netherlands

USA Update 2022

Wednesday, November 30th, in Utrecht.

The American Embassy in The Hague, Rabobank, Wuersch & Gering, and TABS organize the 8th USA Update.
Several developments are going on in the U.S.: High inflation, a policy response from the Fed, and also the midterm elections which will take place on November 8th. What does this mean for the expectations for 2023? And what are the current opportunities and challenges of doing business in the U.S.? Various relevant speakers once again share their visions and experiences.

Meet Carmen Munoz, VP Business Development & FDA Specialist

Carmen has more than 20 years of global experience in international sales and business development for the private and the public sectors. She resides in the U.S. since 2006.

During the last 15 years, Carmen has worked overseeing the U.S. market access and FDA compliance program for European companies securing the FDA compliance of more than 500 foreign companies’ accounts in the food and beverage, medical devices, and cosmetic industries.

“I firmly believe that the FDA requirements are not and should not be a barrier for overseas companies to access the U.S. market. In TABS we like to say that it’s the same game but with different rules and we help you navigate and comply with those rules. We are proud to offer personalized assistance to our clients.”

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