Beginning in 2018, under the tax code overhaul, the provisions applicable to pass-through entities provide for 20% of pass-through income to be deducted, subject to certain limitations. The remainder of pass-through income remains subject to taxes at regular rates up to a new top rate of 37% (revised down from 39.6% under prior law). For persons making more than $157,500…
Corporate Law
Primer on Pass-Through Taxation on Sub-Chapter S Corporations and Limited Liability Companies
Current law on Sub-Chapter S and Limited Liability Companies can be summarized as follows: S Corporations For Federal income tax purposes, an S corporation generally is not subject to tax at the corporate level. Items of income (including tax-exempt income), gain, loss, deduction, and credit of the S corporation are taken into account by the S corporation shareholders in computing…
The Importance of Corporate Annual Minutes
It is that time of year again; businesses are end-of-year planning for taxes, finances, and budgets. In the flurry of tying up loose ends for the previous year and planning ahead for the next, one important item generally gets overlooked by business both large and small: Corporate Annual Minutes. Preparation of a company’s corporate minutes should be an annual ritual…
The EEOC Looks to Expand Pay Data Collection
Large Employers Should Prepare for Increased Transparency in Pay Practices as the EEOC Looks to Expand Pay Data Collection On January 29, 2016, in an effort to combat pay discrimination in the workplace, the Equal Employment Opportunity Commission (EEOC) proposed a rule that would require businesses with 100 or more workers to include additional data on a revised version of…
Conscientious Drafting of Employment Agreements Remains Imperative
Conscientious Drafting of Employment Agreements Remains Imperative as North Carolina Supreme Court Reaffirms its “Strict Blue-Pencil Doctrine” for Restrictive Covenants North Carolina courts continue to be limited from revising unenforceable covenants not to compete as the North Carolina Supreme Court reaffirms its limited application of the “blue pencil doctrine.” The Court, in rejecting the North Carolina Court of Appeals decision…
OSHA Rule Requires Certain Businesses to Publicize Workplace Injuries and Illnesses
New OSHA Rule Requires Certain Businesses to Publicize Workplace Injuries and Illnesses on OSHA Website in Order to Improve Worker Safety Beginning in 2017, businesses with 250 or more employees, as well as businesses with 20-249 employees in certain high-risk industries, will be required to electronically submit recorded information on workplace injuries and illnesses to the OSHA website. This information,…
Bo Caudill Successfully Negotiates Chapter 11 Bankruptcy Preference Claims
Furniture Brands International, Inc., once one of the world’s largest furniture manufacturers (and owner of North Carolina brands like Thomasville Furniture, Broyhill and Hickory Chair), filed for Chapter 11 Bankruptcy in September, 2013. As a part of the bankruptcy process, the US Bankruptcy Court appoints a trustee to oversee the operations or wind-down of the bankrupt company. The trustee has…
Significant Changes to Overtime Coming
Many clients are already familiar with the Fair Labor Standards Act (FLSA) requirements that nonexempt employees be paid overtime at the rate of one-and-one-half their regular rate of pay for every hour over 40 the employee works during a workweek. As a result of new proposed regulations from the US Department of Labor, however, who can be classified as an…
Do Your Non-Competition Agreements Prevent Competition?
By all accounts, North Carolina has largely emerged from the Great Recession. In fact, according to the NC Department of Commerce, as of February, 2015, North Carolina’s unemployment rate had dropped to 5.3%–one of the lowest rates since the Great Recession began in 2008. As hiring improves, however, many clients are increasingly concerned with protecting their investment in their businesses,…
Employers Face New Obamacare Regulation on October 1
Under the Patient Protection and Affordable Care Act (PPACA), commonly referred to as “Obamacare,” as of October 1, 2013, all employers with at least $500,000 of yearly revenue must provide their employees with written notice of their rights to access the new online health insurance marketplaces.This notice must be provided to all employees, regardless of whether or not the employer…