Budgeting for 2024
December 21, 2023
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New Year, New Changes

2024 has arrived, and with it a number of legal and financial changes across the country! Make sure you understand the new rules that apply to you and your business.

First, a number of states are changing their corporate or income tax policies. Kansas is reducing its grocery sales tax! Fourteen states are reducing their income tax (Arkansas, Georgia, Indiana, Iowa, Kentucky, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Carolina, Ohio, and South Carolina), while Michigan is increasing its individual income tax. For more details about tax changes in 2024, as well as specific tax policies affecting your state, visit the Tax Foundation website.

New minimum wage rates also take effect on January 1st! Twenty-two states are increasing their minimum wage requirements for 2024, and even more cities and counties are increasing their minimum wage requirements as well, so make sure that you are on top of that for your employees! 401ks have new contribution limits as well, $23,000 for employee contributions and $69,000 for total combined contributions from employers and employees. 1099s have to be done by January 31st. The IRS has been trying to require them for PayPal and Venmo purchases for over $600, but they have delayed this for another year.

There are also new mileage rates for 2024. For business use, the rate has increased by 1.5 cents, to 67 cents per mile. On the other hand, the mileage rate for medical purposes or moving purposes for active duty members of the armed forces has decreased by 1 cent, to 21 cents per mile. The mileage rate for charitable organizations remains unchanged at 14 cents per mile. If you haven’t already, make sure to take a picture of your odometer, so that you can track your mileage for 2024!

Another change for 2024 is a filing requirement! All companies – Corporations, partnerships, LLCs, associations – all will have to file an Annual Report with the Department of State EVERY YEAR. The information is primarily concerning the detailed ownership information about the company and must be completed by specific filing dates. And yes, there is a small fee and yes, it can be filed electronically. More to come as to the form completion and such – so please put this on your calendar!

There are also several non-financial laws that are taking effect this January! California is requiring major toy retailers to have a gender-neutral aisle, with toys that could be marketed to both genders. Michigan has new gun laws with the goal of reducing gun violence. Illinois has outlawed book bans, and New York is banning pet stores from selling dogs, cats, and rabbits.

It’s always good to start the new year prepared! It’s wonderful to be able to navigate all of the changes that 2024 brings our way.