CalCPA Daily Clips

Jan. 21, 2022

BUSINESS
Employers Increase Projections for Pay Raises in 2022
Nearly one in three respondents (32%) increased their salary increase projections from earlier in the year. Companies are now budgeting an overall average increase of 3.4% in 2022, compared with the average 3.0% increase they had budgeted in June 2021.
CPA Practice Advisor
https://www.cpapracticeadvisor.com/payroll/news/21253323/employers-increase-projections-for-pay-raises-in-2022
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New Audit Responsibilities for Plan Sponsors Take Effect
Burden for additional plan-related documents will likely fall to HR departments
SHRM
https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/Pages/new-audit-responsibilities-for-plan-sponsors-take-effect.aspx

PERSONAL FINANCE
Using an HSA to save for retirement — or as income now? Avoid these mistakes.
Contributing money to a health savings account, or HSA, is one of the smartest moves you can make for your retirement. But if you’re going to maintain an HSA, it’s important to manage that account wisely.
USAToday
https://www.usatoday.com/story/money/personalfinance/retirement/2022/01/21/avoid-these-mistakes-with-hsa-accounts/49668963/
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Here Are 5 Smart Investing Habits To Start in 2022
The new year is a time when many people find themselves setting goals and resolutions for the months to come. It’s also the perfect time to create smart investing habits that will benefit you not only for the next year but possibly for the rest of your life.
NextAdvisor
https://time.com/nextadvisor/investing/5-smart-investing-habits-to-implement-now/

POLITICS & POLICY
California workplace safety board hears debate on cutting back quarantine during surge
The omicron variant has driven COVID-19 cases to new heights in California, but in the workplace it is more difficult than ever to be paid to stay home if infected.
San Francisco Chronicle
https://www.sfchronicle.com/california/article/California-workplace-safety-board-hears-debate-on-16791649.php
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Will California put vaccine mandates into law? Legislators look to tighten rules
California lawmakers want stronger policies when it comes to vaccine requirements, but just what those policies will look like is still up for debate.
Sacramento Bee
https://www.sacbee.com/news/politics-government/capitol-alert/article257506619.html

PROFESSION
Tax Season Tips for Small-Business Clients
While many tax pros may not find the return-filing process to be complicated, their small-business clients can get overwhelmed.
AccountingWeb
https://www.accountingweb.com/tax/business-tax/tax-season-tips-for-small-business-clients

REGULATORY
Digital currency could ‘fundamentally change’ the financial system, says Federal Reserve
The US Federal Reserve is seeking public comment on the pros and cons of it releasing a US central bank digital currency.
ZDNet
https://www.zdnet.com/article/digital-currency-could-fundamentally-change-the-financial-system-says-federal-reserve/
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Prepare for big central banks moving out of step: policymakers
The world’s biggest central banks, moving in tandem at the height of the pandemic, are set to tighten policy at vastly different speeds, likely increasing economic and market volatility this year.
Reuters
https://www.reuters.com/markets/rates-bonds/prepare-big-central-banks-moving-out-step-policymakers-2022-01-21/

TAX
IRS having difficulty processing power of attorney forms
The tax season that’s due to open when the Internal Revenue Service begins accepting tax returns next Monday is promising to bring a host of challenges.
AccountingToday
https://www.accountingtoday.com/news/irs-having-difficulty-processing-power-of-attorney-forms
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How Section 1244 Helps Investors in New Businesses
Section 1244 of the Internal Revenue Code may provide some financial relief to investors in new businesses.
AccountingWeb
https://www.accountingweb.com/tax/how-section-1244-helps-investors-in-new-businesses
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2021 Tax Returns: What’s New on the 1040 Form This Year
Don’t get caught off guard this tax season. Familiarize yourself with potential changes for your 2021 tax return before tackling your 1040.
Kiplinger
https://www.kiplinger.com/taxes/tax-filing/604100/2021-tax-returns-what-is-new-on-1040-form
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IRS will require taxpayers to sign up with ID.me to access their online accounts
Starting this summer, taxpayers wanting to access their online accounts on IRS.gov will soon be required to take a selfie and verify their identity with ID.me.
CBSNews
https://www.cbsnews.com/news/irs-id-me-tax-file-2022/

TECH
Ransomware and phishing: Google Drive will now warn you about suspicious files
The next time you open a suspicious PDF in Google Drive, you should see a banner alert warning.
ZDNet
https://www.zdnet.com/article/ransomware-and-phishing-google-drive-will-now-warn-you-about-suspicious-files/