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Dear Client/Business Partner,

At the beginning of 2023, the TABS team sends you our warmest wishes. One of the greatest joys of this season is the opportunity to say THANK YOU and wish you the very best for the New Year.

Although it’s early January 2023 is in full swing. Tax season is coming up, and there’s a lot of news from our HR department. Read all this and other relevant information for your U.S. venture in this newsletter.

On behalf of the entire TABS Team,
Jacob Willemsen

What's new

TABS Launched the U.S. Expansion Podcast Series

The U.S. Expansion Series is a podcast on how to expand your business to the U.S. market successfully. This first season hosts Fleur & Flora of TABS discuss the legal landscape, the risk of liabilities, pitching to U.S. investors, and the expansion journeys of Tony Chocolonely, ChannelEngine, and the Belgian Boys. This podcast aims to provide companies with the tools and guidance for those interested in expanding to the U.S. market. Click to go to podcast episodes.
US Expansion Series

Tax Season Starts with 1099

Reporting requirements for any contractors, consultants, or self employed that you hired in 2022.

You should note that the first deadline is January 31, 2023. This is the date by which business owners should have completed the mandatory filing of 1099s for independent contractors or vendors to whom you have paid more than $600 and W-2s for employees.

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 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 substantial penalties.

If you would like additional information or assistance, or if you have other tax-related questions, please contact our tax support officers.

Corporate Income Tax 2022

Income tax filings are due March 15th for some LLCs and April 15th for C-corporations (most 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 an 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.

IRS Changes to 2023 Benefit and Tax Limits

As with every new year, the IRS announced changes to wage cap limits for 2023.  As a result of rising costs last year, all limits have increased in 2023. The following items are most often asked about by our clients (all annual amounts, unless specified otherwise):

  • Social Security Wage Cap: Increases to $160,200.
  • 401K Contribution Limit: Increases to $22,500 for employee contributions, with catch-up contributions (for 50+) increasing to $7,500.
  • Health Savings Account: Increases to $3,850 for individual and $7,750 for family coverage.
  • Flexible Spending Account (Healthcare): Increases to $3,050.
  • Flexible Spending Account (Dependent Care): Unchanged at $5,000.
  • Qualified Small Employer Health Reimbursement Arrangement (QSEHRA): Increases to $5,850 for individual and $11,050 for family coverage.
  • Commuter Benefits: Increases to $300/month.

California New Privacy Rights Act (CPRA) is Effective Jan 1, 2023

As of January 1, 2023, California’s newest Privacy Rights Act (CPRA) takes effect and will impact how many businesses handle employment data. Companies must comply with the new law if they are a for-profit business and collect and control personal information of California residents, including employees and job applicants; and if they

  1. As of January 1, of a calendar year, had worldwide annual gross revenues over $25 million in the preceding calendar year; or
  2. Alone or in combination, annually buy, sell or share the personal information of 100,000 or more California residents, or households; or
  3. Derive 50% or more of your annual revenues from selling or sharing California residents’ personal information.

If you have questions as to whether this applies to your business, or what is required of you, please contact our HR department.

New York State to Require Electronic Workplace Posters

Acknowledging that more employees are working from home and away from their physical workplace, New York State now requires employers of all sizes to make mandatory workplace posters available to employees electronically, either on their website or by email, in addition to posting physical copies in the workplace. This requirement applies to all workplace postings that are required under state or federal law. Employers must also notify employees that the postings are available electronically.

Lists of required posters are available here. For any assistance in gathering the required posters, please contact our HR team.

Next Steps for New York State Employers:
  • First, covered employers should make sure all mandatory workplace postings have been posted in the physical workplace in accordance with all applicable laws.
  • Next, employers should compile or make digital copies of these postings and upload them to their company intranet. If the company does not have an internal website, it should draft an e-mail with the postings attached for dissemination to employees once the bill becomes law.
  • Regardless of the method used to share these digital copies (intranet or e-mail), the employer must also provide employees with notice that the documents are available electronically. Accordingly, New York employers should begin preparations to update any employee handbooks or similar resources.

Consequence of Payrolling in the United States with a Foreign Entity

When a foreign entity wishes to enter the U.S. market, a major factor they may need to consider involves hiring U.S. employees.  This may seem like a daunting and overwhelming prospect, and in an effort to ‘simplify’ the matter and ‘reduce costs,’ some foreign entities may decide to payroll themselves directly (i.e., using the foreign entity as the employer) or contract with and use a professional employer organization (a “PEO). In fact, some global PEOs are marketing heavily and offering services at what may appear to be ‘too good to be true’ rates.  Beware as they may just be!

Here are some things to consider when reviewing whether to employ via a foreign entity and/or use a global PEO.

Impact of State Corporate Income Tax on Site Selection

Companies entering the U.S. market find state Corporate Income Tax (“CIT”) enticing when considering where to establish their new entity. Many have heard about the Delaware “tax haven” or Wyoming’s absence of taxation. But when it comes to where to form a U.S. company, businesses should consider additional factors when deciding on the best location for their company. Businesses may overvalue state CIT, and its pertinence to where the company should be established, but where a company is established does matter and can have lasting implications. TABS helps companies weigh all considerations when determining where to form companies in the United States.

Understanding the different levels of government in the United States is important for foreign-owned businesses operating in the United States.   Companies are required to follow federal, state, and local (county, city, etc.) laws. Though a bit more complicated (something that we don’t have time to get into in this article) as a simplification, federal laws sit at the top of the pyramid and are supreme to state laws, and state laws are supreme to local laws. The laws may take precedence over each other, but taxes compound. This means that taxes affect corporations on all three levels simultaneously.

Health Insurance for Expats

Need health insurance for expats in the U.S.? We noticed arranging health insurance to be a disappointing fact for many companies when expanding to the U.S. Therefore, we’ve been working on ways to help companies with their health insurance needs in the U.S. TABS’ insurance partners provide access to affordable health insurance for expats, offering our network many advantages if you join through TABS.

5 good reasons to choose our insurance partners:

  1. Peace of mind.
  2. Affordable U.S. health insurance.
  3. Customized service.
  4. Free SOS-package.
  5. Individual coverage.

Arrange everything in one go, wherever you are and whatever you do!

Upcoming Events

A Local Presence in the USA

Roundtable, Tuesday, February 7th, at 11 am EST / 5 pm CET / 8 am PST, Online

When expanding to the USA, there are many different options for entering the market. For many entrepreneurs, setting up a legal entity is a significant milestone in their expansion journey. While this is a logical choice in most cases, there are many things you need to consider before doing so, and timing is crucial for a successful market entry.

You must prepare, know your options, and think carefully about the business model that best suits your business and ambitions. During this roundtable, we will discuss the best practices for a successful market expansion to the U.S. Willemijn Schneyder, CEO of Swipeguide Inc., will join the discussion to share everything she’s learned during the successful market expansion of Swipeguide into the U.S.

Sophie Boutelegier from Expandify and Frederique Smeets & Floor Bergshoeff of TABS Inc. will host the roundtable and share their expertise based on years of experience assisting European companies with their market entry.

Are you interested in joining? Please send an email to sign up.

2023 Select USA Investment Summit

1-4 May, Washington DC

The SelectUSA Investment Summit is the top event in the United States for Foreign Direct Investment (FDI) promotion, connecting investors, companies, economic development organizations (EDOs) and industry experts to seize every opportunity available to make investment deals happen through U.S. investment.

The event is a must for any organization looking to expand its operation into the U.S. Having all regions and many industries represented in one place makes for a unique opportunity to efficiently evaluate options and make informed decisions for the future. It’s a great platform to introduce and showcase new foreign companies coming to the U.S. People are receptive and willing to listen to ideas and are inquisitive about the businesses. The speakers are inspirational and diverse to show the American dream is possible when given a chance.

Registration is open, apply by Tuesday February 28th to lock in the early bird rate!

TABS attended the Consumer Electronics Show (CES 2023)

Las Vegas, January 5th – 8th
The Consumer Electronics Show (CES) is the most influential tech event in the world, the proving ground for breakthrough technologies and global innovators. CES 2023 showcased more than 3,200 exhibiting companies.
The success and innovative character of the Dutch delegation was reflected by a record number of CES Innovation Awards won by companies from the Netherlands. Hydraloop (awarded as overall winner during the CES 2020) was among them. They launched their latest product, the Hydraloop Concealed, globally at the Consumer Electronics Show.
TABS partners Novel-T and Rabobank organized a successful networking event for the Netherlands and Dutch media participants, which Prince Constantijn van Oranje, Special Envoy at, attended.
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