Year End To Do List

• Charitable contributions - if so moved, make sure any charitable contributions (cash or property) are completed before Dec 31st in order to take advantage of them for 2022 itemized deductions.
• Loss Harvesting - this is a strategy where you sell stocks at a loss in order to reduce the tax burden on gains you may have realized on stocks earlier in the year. In order for these losses to qualify, you must sell the securites before year end. In addition, to avoid wash sale rules, you must avoid buying a "substantially identical stock" within 30 days of the day you sold the stock.
• IRA contributions - Just a reminder that you actually have until the date you file your 2022 tax return (either April 18th if filed on time or October 17th if extended) to make qualifying contributions to an IRA.

Tax Organizers

We should be mailing the 2022 tax organizers out in early January. Although we do not require clients to use the organizers, many find them a useful memory jogger as they show the tax related items (and amounts) that were reported in the previous year. This helps assure you do not miss items which could result in an amended return.

Quick Business Updates

Here are a few quick updates for our business clients on recent topics we covered as well as some miscellaneous items that have come up.

Unemployment Insurance (UI) Notices

• CO is in the proces of sending the annual unemployment notices out so do not be alarmed if you receive one.
• These notice simply inform you of any rate change that CO has made to your state unemployment rate and the data they used (mainly unemployment claims made against you).
• If the data appears accurate, no action is needed other than making sure your payroll system is updated so that you pay the correct amounts in 2023. If the data is incorrect, follow the instructions on the notice regarding how to appeal the rate change.

QuickBooks Desktop Migration

• For those that use QB Desktop, please be aware QB support of the 2020 version will end as of May, 2023. This is particulary important if you use QB payroll in the 2020 version - you will need to upgrade to the latest version before the end of May in order to run payroll. Even if you don't use QB payroll, we recommend anyone with the QB 2020 version (or ealier) upgrade to the 2023 version as you will not be able to get technical support if you have an issue.

FAMLI

• CO and third party payroll providers (ADP, Paychex, Gusto, etc.) continue to prepare for this change going into effect on January 1st, 2023.
• At this point, you should have notified all of your employees of this deduction that they will see beginning with their first paycheck in 2023. Use the links in our prior newsletters or go the DOL website to see the useful FAMLI information they provide to notify your employees.
• Note that the FAMLI deductions you take out of employee paychecks (as well as your employer match if you have 10 or more employees) do not need to be remitted to CO until after the first quarter. The forms and process to make these payments are still being finalized by CO.
• As noted before, all employers have to register with FAMLI (part of DOL). Many third party payroll providers are doing this for their customers so you should verify with them if they have registered you. You can register anytime before the first payment of the FAMLI deductions is due in April, 2023. You can use the link below to go the registration site.

Our offices are closed on Monday, December 26th as well as Monday January 3rd. In addition, some of the team is taking some well deserved vacation this time of the year.

Once again, enjoy your holiday and thanks for letting us be your trusted advisors!!