Business Frame Weekly - FAF Announces Free Online Portal / Tax Break Proposal for Beauty Salon, Barber Tips / W-2 Statements Due by January 31

Financial accounting standards will be more widely accessible to the public after the Financial Accounting Foundation (FAF) revealed a free, enhanced online portal this week.

In a recent proposal by the Senate, beauty services providers like manicurists and barbers may be offered tax credits for tips via the Federal Insurance Contribution Act.

Employers are required to file W-2 and W-3 statements by January 31, 2023, whether filing by paper forms or electronically.

In this newsletter:

• Financial Accounting Foundation Announces Changes to Online Access to Accounting Standards Codification and Governmental Accounting Research System
• Senators Propose Tax Break for Beauty Salon, Barber Tips
• W2 Statements Due to Employees and SSA by Jan. 31, 2023
• Intuit TurboTax Releases TurboTax Tax Trends Report
• Melio Now Integrates with Xero
• Why Advisors Should Get a Leg Up on the 2024 Tax Season Right Now

January 31, 2023

Financial Accounting Foundation Announces Changes to Online Access to Accounting Standards Codification and Governmental Accounting Research System

The Financial Accounting Foundation (FAF) announced it will provide free, enhanced online access to the Accounting Standards Codification® and the Governmental Accounting Research System™ in an effort to make financial accounting standards even more widely accessible to stakeholders and the public. The FAF has not yet determined the firm date for this change to online access to the accounting standards, but it is expected to occur this spring.

Senators Propose Tax Break for Beauty Salon, Barber Tips

Senate Small Business Committee chair Ben Cardin, D-Maryland, and Sen. Tim Scott, R-South Carolina, introduced bipartisan legislation Thursday to offer tax credits for tips to beauty services providers, such as manicurists, skincare specialists, hairstylists and barbers. The Small Business Tax Fairness and Compliance Simplification Act would expand the tax tip credit under the Federal Insurance Contribution Act so beauty service businesses could be treated similarly to the food and beverage sector, where workers also heavily depend on tips from customers.

W2 Statements Due to Employees and SSA by Jan. 31, 2023

Employers must file copies of their 2022 Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31, 2023. This deadline applies for all Forms W-2 and W-3, whether filing by paper forms or electronically. Employers must also provide copies B, C and 2 of Form W-2 to their employees by January 31, 2023. For more information on filing Form W-2, see General Instructions for Forms W-2 and W-3.

Intuit TurboTax Releases TurboTax Tax Trends Report

TurboTax released the TurboTax Tax Trends Report, providing a retrospective look at how finances are evolving in America from 2020 through 2021 tax filing years. The report analyzes data spanning major financial areas including income and inflation, employment, and cryptocurrency. Notably, the report uncovered that Gen Z and Millennials changed employers at a higher rate in 2021 compared to other generations. Meanwhile, 4.5% of Gen Z and millennials in the 25 to 34 age group of single filers included cryptocurrency sales transactions in their returns, compared to 2.9% overall.

Melio Now Integrates with Xero

Melio, a leading B2B payments platform for small businesses, has announced a new integration with the cloud-based accounting software platform Xero. The integration will enable Melio to provide small business customers the ability to automatically sync their accounts payable and receivable data with Xero—saving valuable time on paying bills, making reconciliation easier and providing better visibility into upcoming payments.

Why Advisors Should Get a Leg Up on the 2024 Tax Season Right Now

The year 2024 seems far down the road. But neglecting to review your income, spending and retirement contributions in the coming weeks — an ideal time because you have key documents on your table for this year's April 18 filing date — can cause you to owe more next year than you expected. Amid a host of recent tax law changes that impact what you can do with the income you're earning right now, and thus what you will pay the Treasury Department come 2024, a financial advisor or accountant can help pinpoint the key levers.

Random Ramblings

• The benefits of benchmarking in business operations.
• Accounting ratios: What they are and why they matter to small businesses.
• No easy answers: A look back and ahead at accounting.
• Perform effective risk assessments to improve audit quality.
• How to conduct a market analysis for your business.