January 7, 2022: Happy 2022, Employers! Here Are the Tax Updates You Need to Know Right Now
January 7, 2022
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All the 2022 tax things
Happy new year, readers! We all know what happens when the calendar resets: new year, new workout goals, and of course, new tax changes. Here are a few you will want to know about:
- Expanded child tax credits have expired — COVID legislation both expanded eligibility for child tax credits and made it possible to get the payments in advance. Congress failed to renew the expansion, so these provisions expired in Dec. 2021. The expansion may or may not see renewal in future, but you can still claim the credit on your 2021 tax return.
- New 1099-K tax rule — If you’re a business owner, sole proprietor, or contractor with customers who pay online or with a debit or credit card, there’s a new 2022 1099-K reporting requirement you need to be aware of. Read more here.
- W-4 updates — Form W-4 has undergone a few changes for 2022; check them out in our updated guide. If you or your team have upcoming life changes in 2022—getting married, buying a new house, or adding new dependents—or even if you don’t, the beginning of the year is a great time to revisit your withholdings with your accountant.
- ICYMI: SUI tax increases — Your employer taxes will probably increase in 2022 due to increased state unemployment insurance tax rates across the country. Here’s what you need to do about it.
What sort of information would be most useful to you as you head into tax season? Want a heads up about tax deductions and credits? How-tos for tax prep with your accountant? Respond to this email and let us know so we can surface the most useful info for you!
Long COVID is now covered under ADA
Long COVID, aka post-COVID, long-haul COVID, or simply the long-term effects of COVID, is now officially recognized as a disability under U.S. labor law. Last month, the Equal Employment Opportunity Commission (EEOC) issued new requirements for employers under the Americans with Disabilities Act (ADA), which means employers will be required to accommodate employees with long COVID for the long haul. While COVID illness doesn’t constitute a disability if symptoms resolve in a few weeks, here are a few potential qualifiers of long COVID:
- Long-term COVID-related gastrointestinal issues
- Lung damage that results in limited respiratory function
- Ongoing cognition issues or “brain fog”
Be sure to educate your managers and supervisors on the possible ADA implications related to long COVID. All reasonable accommodation requests should be referred to HR, and avoid taking adverse actions against folks whose long COVID could render them disabled under the law.
Supreme Court reviews vaccine mandate
Today marks a special session in which the U.S. Supreme Court will review the federal vaccine-or-testing mandate proposed for 100-plus employers:
The Supreme Court on Friday will review two challenges to the administration’s vaccine policies affecting nearly 100 million workers. Most already have made the choice to be vaccinated, but Biden has said the numbers are not good enough.
One measure requires large private companies to implement a vaccination requirement or impose a masking and weekly testing regimen. The second applies to health-care workers at facilities that receive certain federal funding.
The rules, if passed, could require employers to start taking action to comply as soon as this month. Stay tuned for more developments on how your business may be impacted.
ICYMI: Your Business May Qualify to Save Thousands with the R&D Tax Credit
Many businesses think they don’t qualify for R&D tax credits if they don’t… do R&D. But that’s false. If you develop new products, reduce uncertainty through innovation, or use hard sciences, you may qualify for up to $250,000 a year in tax credits. Ardius CEO Joshua Lee covered everything business owners need to know about the R&D Tax Credit last month. Watch the webinar on demand here.
New from Gusto
We’ve already been busy publishing this year! Check out some of the latest and greatest from Gusto’s stellar editorial team:
- Best Practices for Raising Prices and Maintaining Customer Relationships
- How to Create a Trans-Inclusive Workplace: Laws and Best Practices
- A Real-Time Look at ‘The Great Resignation’: December 2021
Find the latest relief options in our Small Business Relief Finder.
Want more news and resources? Check out past editions in our archive.