Reuven I Rubinson, CPA

Update – there is apparently a 2nd case where the judge has issued a stay of the BOI under different facts. Accordingly, FinCEN has announced that the BOI is currently unenforceable.

The roller coaster continues. The BOI reporting is now back in place while the courts decide! Hang on for information from FinCEN as to what the deadlines are going to be.

According to the ABA Banking Journal - "Supreme Court allows beneficial ownership information collection to proceed … The Supreme Court’s stay allows the CTA to be enforced while the courts weigh the merits of the case. As of Thursday afternoon, FinCEN had not provided instructions about the resumption of BOI reporting."

Supreme Court allows beneficial ownership information collection to proceed | ABA Banking Journal The Supreme Court’s stay allows the Corporate Transparency Act to be enforced while the courts weigh the merits of the case.

California businesses need to be aware of the Freelance Worker Protection Act. Starting in 2025 if you hire a "freelance worker" and pay them over $250 for professional services, you must have a written contract with them and the "contract shall include, at minimum, all of the following information:

(1) The name and mailing address of each party.

(2) An itemized list of all services to be provided by the freelance worker, including the value of those services and the rate and method of compensation.

(3) The date on which the hiring party shall pay the contracted compensation or the mechanism by which the date shall be determined.

(4) The date by which a freelance worker shall submit a list of services rendered under the contract to the hiring party to meet the hiring party’s internal processing deadlines for purposes of timely payment of compensation."

A “Freelance worker” means a person or organization composed of no more than one person, whether or not incorporated or employing a trade name, that is hired or retained as a bona fide independent contractor by a hiring party to provide professional services in exchange for an amount equal to or greater than two hundred and fifty dollars ($250), either by itself or when aggregated with all contracts for services between the same hiring party and independent contractor during the immediately preceding 120 days."

If there is any good news, professional services are defined under section 2778 of the labor code which appears to have limited reach. It's interesting that Enrolled Agents are considered to be providing professional services but CPAs are not. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=2778.&lawCode=LAB

Since I am not an attorney I cannot provide legal advice and I would suggest businesses consult with counsel to determine which contractors are covered by this law..

Bill Text - SB-988 Freelance Worker Protection Act. SB 988 Freelance Worker Protection Act.

California and New York employers are going to have to pay additional FUTA taxes in January for this year because they have an outstanding federal unemployment account loan .

FUTA Credit Reductions, Employment & Training Administration (ETA) - U.S. Department of Labor FUTA Credit Reductions