Federal judge temporarily suspends new overtime rules set to take effect Dec. 1

Federal judge temporarily suspends new overtime rules set to take effect Dec. 1
On Tuesday, November 22, 2016, a federal judge issued a preliminary injunction against Department of Labor’s overtime regulation that would raise the salary threshold, below which workers automatically qualified for overtime pay, to $47,476 a year. This new overtime regulation was set to take effect on December 1.

Client Alert TagJudge Amos L. Mazzant III of the Eastern District of Texas ruled that the DOL had exceeded its delegated authority by significantly raising the overtime salary limit from $23,660 to $47,476 (from $455 a week to $921 a week). This injunction is a temporary measure that suspends the regulation until the judge issues a ruling on the merits, and it affects workers nationwide.

The DOL has stated it is confident in the legality of the new overtime regulations and will likely be seeking an appeal. It could still face a strong challenge from President-elect Trump or be changed by new legislation from Congress.

The ruling leaves room for uncertainty as to how businesses should proceed. If you would like to discuss how this development affects you or your business, contact your WK advisor at (573) 442-6171 or (573) 635-6196.

REMINDER: 2015 LAW CHANGES TAX RETURN DATES FOR C CORPORATIONS, PARTNERSHIPS, AND MORE. A law signed by President Obama last year changed the due dates for certain 2016 tax returns that will be filed in 2017. Entities affected by the new deadlines include partnerships and C corporations, as well as those that file FinCEN Form 114, Report of Foreign Bank and Financial Accounts, and several other Internal Revenue Service information returns.
IRS DELAYS EMPLOYERS’ DEADLINE TO DISTRIBUTE FORMS 1095-B AND 1095-C TO EMPLOYEES. The IRS recently issued a notice that it has extended the deadline to file Affordable Care Act mandatory reporting of 2016 health insurance coverage on Forms 1095-C and 1095-B from January 31, 2017, to March 2, 2017.
2016 TAX CHANGES: RECAP FOR BUSINESS OWNERS. As the end of the year approaches, we wanted to remind you about some of the legislative changes of 2016 that can affect business owners, such as tax credits, depreciation changes, and new deadlines. If you haven’t already done so, you might think about how these changes could affect your business and which year-end tax planning strategies might be right for you.

Posted 11-23-2016 | Topics: Client Alerts, News,

Our thoughts and prayers are with all of our clients, friends and the communities across the state of Missouri impacted by the storms, tornadoes and flooding that have hit our state.
Our collective resolve will carry us through the coming months as we work to restore what was lost.