Business Frame Weekly - IRS $600 Threshold Rule Delayed / New York Salary Transparency Law Passed / PCAOB Proposes New Auditing Standard
According to recent guidance by the IRS, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K for the $600 threshold amount enacted as part of the American Rescue Plan of 2021.
New York state is now the fourth U.S. state to require salary ranges with job postings after Governor Kathy Hochul signed a new law, which is to take effect in September.
The PCAOB has proposed a new auditing standard, AS 2310, designed to strengthen and modernize the requirements for the auditor’s use of confirmation. Comments will be accepted through Feb. 20, 2023.
In this newsletter:
- IRS Puts $600 Threshold Rule on Hold
- New York State Will Now Force Companies to Include Salary Ranges in Job Ads
- PCAOB Proposes New Auditing Standard
- FASB Defers Sunset Date of Reference Rate Reform Guidance
- Jobless Claims Show that Businesses are Reluctant to Lay Off Workers
December 27, 2022
IRS Puts $600 Threshold Rule on Hold
The Internal Revenue Service announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season. As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021. As part of this, the IRS has released guidance outlining that calendar year 2022 will be a transition period for implementation of the lowered threshold reporting for third-party settlement organizations (TPSOs) that would have generated Form 1099-Ks for taxpayers.
New York State Will Now Force Companies to Include Salary Ranges in Job Ads
New York will be the fourth U.S. state to require salary ranges with job postings when a new law signed Wednesday by Governor Kathy Hochul takes effect in September. This fall, one in every five people in the U.S. will live in a state with so-called pay transparency laws. The law applies to all employers across New York with four or more workers, even for jobs only performed partly within the state. By September, job ads must include an annual or hourly salary amount or minimum and maximum range. A similar New York City law went into effect in November.
PCAOB Proposes New Auditing Standard
The PCAOB issued a proposed new standard Tuesday designed to strengthen and modernize the requirements for the auditor's use of confirmation. Comments on the proposal will be accepted through Feb. 20, 2023. The proposed standard would replace AS 2310, The Confirmation Process, with a new proposed standard, AS 2310, The Auditor's Use of Confirmation, and make conforming amendments to certain related PCAOB auditing standards. The proposed standard also includes principles-based requirements that would apply to all methods of confirmation, including paper-based and electronic communications. The proposal, if adopted, is expected to better integrate the PCAOB's confirmation standard with its risk assessment standards.
FASB Defers Sunset Date of Reference Rate Reform Guidance
The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) that extends the period of time preparers can utilize the reference rate reform relief guidance. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the Board included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848.
Jobless Claims Show that Businesses are Reluctant to Lay Off Workers
Applications for U.S. unemployment benefits were little changed last week, remaining near a historically low level, underscoring businesses' reluctance to lay off workers in a supply-constrained labor market. Initial unemployment claims increased by 2,000 to 216,000 in the week ended Dec. 17, Labor Department data showed Thursday. The median forecast was for 222,000 applications. The measure has been slowly climbing, a potential indication that it's been more difficult for out-of-work individuals to find new jobs. The job market remains extremely tight, and while there have been some signs of cooling, the ongoing imbalance between supply and demand for labor continues to put upward pressure on wages. It's also made many employers more reluctant to reduce headcount, given the challenges in attracting and retaining employees.
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