** Happy Fall **

With Thanksgiving just around the corner, we want to remind you how thankful we are for your continued business and the many client referrals we are getting!



THANKS!

CO Minimum Wage

• The CO state minimum wage will increase from $12.56 to $13.65 on January 1, 2023 (8.7% increase)
• The minimum wage for tipped employees (employees that typically receive more than $30 in tips monthly) will increase from $9.54 to $10.63 (11.1% increase)

Denver Minimum Wage

• Given how many of our clients operate in Denver, the minimum wage within Denver for 2023 is $17.29 (8.9% increase) and $14.27 for tipped employees (11.1% increase)

CO Secure Savings Program (CSSP) Update

The link below provides more information on CSSP but the key highlights for you as an employer are the following:

• If you have been in business more than 2 years, have more than 5 employees and DO NOT already provide a qualified retirement plan, you MUST comply with CSSP
• If you already provide an employer sponsored retirement plan (401k, SIMPLE, SEP, etc.), you still have to register and certify your compliance with CSSP.
• If you are required to participate in CSSP, there are NO FEES for you as an employer and you DO NOT have to contribute to or match employee contributions. However, you must have your payroll system ready to deduct employee contributions to CSSP.
• Keep in mind the intent of CSSP is to encourage employees to plan for retirement by making sure they have an OPTION to participate in a retirement plan. This program does not force them to participate so employees can OPT OUT. However, as an employer you have an obligation to offer them CSSP participation if you don't provide your own qualified retirement plan.

CO FAMLI Update

The links below provide more information on FAMLI but the key points for you as an employer are the following

• ALL EMPLOYERS must be ready to deduct up to .45% of employee pay starting Jan 1, 2023.  This is the employee expense but your payroll system must deduct it from their pay.
• If you have more than 9 employees, you must also contribute .45% of employee pay as your employer contribution starting Jan 1, 2023.  This is your expense as an employer.
• Employees who have qualifying leave circumstances (see links below) will get replacement pay between 37% and 90% of their normal pay for up to 12 weeks in a year. 
• However, the wage replacement benefits provided for under FAMLI do not start until Jan 1, 2024 (so essentially 2023 is a year to build the FAMLI reserve to fund this leave benefit).
• The employer DOES NOT pay the replacement pay an employee is eligible for.  Just like unemployment, the replacement wages are paid for by the DOL (out of the FAMLI reserve funded above).
• However, although you don't pay them, you must allow them to leave work and hold a position for them upon their return from leave.
• ALL EMPLOYERS must register with the DOL FAMLI division. More details will be coming but we understand it will be similar to set up for unemployment with the state.

Clean Energy Credits

• The tax credit for qualified electric and hybrid vehicles had several revisions.
• The maximum credit is still $7,500.
• Some of the new criteria are less restrictive (credit was extended through 2032, used electric/hybrid vehicles are now eligible for reduced credit, caps on models were lifted, etc.)
• Some of the new criteria are more restrictive (cars must meet certain US build requirements, no credit allowed above certain AGI levels or if vehicle is above certain MSRP)
• The residential energy credit (solar is an example) was also extended to 2032 and remains at 30% of qualified purchases.

ACA and Prescriptions

• The health insurance subsidies under ACA that were set to expire have been extended. 
• The result is that the cost of health insurance should never be more than 8.5% of taxpayer income.
• Several new changes allowing government to negotiate on Medicare drug prices on certain drugs as well as more favorable limits on co-pays.

IRS Funding

• More funds are being allocated to funding the IRS. 
• This issue has been politicized to some extent (i.e. armed agents..) but the actual details of how this funding will be spent have not been finalized.
• Although it is safe to assume more audit agents will be added by the IRS to reduce fraud, some of the funds will likely go to improve IRS service levels (they only answer 15% of calls currently) as well as replace a large amount of existing IRS agents/auditors that are retiring (similar to other businesses with baby boomers in their workforce)
• The stated intent of the IRS is the taxpayers with income less than $400K will have no greater chance of being audited than before.

EIDL and PPP Update