Most of the country is still buzzing over the improbable victory of Donald Trump over Hillary Clinton, but as you expect of us, we’re considering the impact his first year in the Presidency may have on business and taxes. If you haven’t seen the President-Elects published plan for his first 100 days in office, a link to the transcript is as follows: https://assets.donaldjtrump.com/_landings/contract/O-TRU-102316-Contractv02.pdf.
The President-elect’s proposals will impact a cross-section of American wage-earners. We’ll wait for more concrete proposals to come out once the inauguration is completed in January, but we would like to stress one of our 2016 hot topics: Overtime pay.
The Department of Labor has issued final regulations concerning the definitions of exempt and non-exempt employees as regards the payment of overtime rates. These regulations must be enacted beginning December 1, 2016, and the President-elect has vowed to repeal this legislation in the first 100 days of his Presidency.
You’ve heard me speak on the subject of the HKA Informed Taxpayer Rule. If you haven’t heard of us expound on this before, our Rule looks like this: We believe it is our responsibility to make you aware of business and personal risk associated with positions you may want to take on your business and personal tax returns. You, as an informed taxpayer, make an assessment of the risk associated and your tolerance for that level of risk. We support your decisions (of course we never and you never promulgate fraud of any kind).
The DOL Overtime rule going live on December 1 (today!) would fall under this Rule. The 100 day plan, may be better described as a wish list. It is in no way a guarantee that all of these proposals will be adopted by this fractured and rancorous Congress. Our advice is simple: Adopt processes and procedures which enable you and your business to comply with the new regulations fully. Compliance with these new rules is not easy, but penalties are stiff and should be considered before you accept the business risk of non-compliance.
Please call our office at 314-993-4285 if you have any questions.