Stay informed on the latest tax news and developments, including legislation and rule changes, for effective tax planning and compliance.
The governor of Connecticut suggests lowering personal income tax rates
Ned Lamont, the governor of Connecticut, unveiled a two-year budget plan that includes lowering personal income tax rates at his State of the State speech on February 6, 2023. If passed, it would be the biggest state tax rate reduction since 1991 and the first time the state's personal income tax rates had been reduced since 1996. Single filers might save up to $350 under the proposed rate drop, and married couples filing jointly could save up to $700. During the 2024 tax year, the following planned tax rate decreases would take effect:
In his State of the Union Address, President Biden Highlights Paid Leave and No Tax Increases
On February 7, 2023, President Biden spoke on a few topics that affect payroll professionals. First of all, he said that there are no intentions to raise income tax rates for those who earn less than $400,000. He also reaffirmed his support for the billionaire minimum tax idea, which would levy a 20% minimum tax on earnings above $100 million, but it is unlikely to pass given the Republican majority in the House.
The President also emphasized the necessity of paid family and medical leave as well as paid sick days for parents who are working, although he made no mention of any legislation that has been suggested. Although two laws (HR856 and S274) propose paid family and medical leave for federal employees, private employers are not covered by them. The Work Protection Act and the ESP and School Support Staff Family Leave Act are two additional measures that would extend the Family and Medical Leave Act (FMLA) to cover certain educational staff and part-time workers, although they do not provide paid family and medical leave.
President Biden also covered non-compete clauses, which are clauses in contracts that often prevent employees from working for a rival company or starting a rival firm within a specific region and for a specific amount of time after their employment ends. According to him, non-compete clauses are outlawed so that businesses must compete for employees and pay them fairly. The public comment period for the Federal Trade Commission's proposed regulation, which would define non-compete agreements as an instance of unfair competition, expires on March 20, 2023.
According to a survey, audit committees are being tasked with more and more oversight duties
According to a report by Deloitte and the Center for Audit Quality, audit committees are facing a new reality with an enlarged supervisory reach beyond conventional financial reporting and audit monitoring (CAQ). According to the study, which was based on a survey of 164 audit committee members from major public businesses, audit committees are now in charge of monitoring cybersecurity, enterprise risk management (ERM), and ESG reporting. With 63% of respondents ranking cybersecurity as the most crucial area after financial reporting and internal controls, it came in first place.
Julie Bell Lindsay, CEO of CAQ, claims that investors are becoming more insistent on disclosures outside of the conventional financial statement, emphasizing the critical function of audit committees in upholding high standards of financial reporting. The report's conclusion is that audit committees should regularly evaluate its membership and skill set to make sure they are meeting the demands of the company and the dangers it faces.
