Trending in business
Three innovative trends are taking hold at businesses across the country, according to Inc. magazine.
Whistleblower protections extended
Whistleblower protections have been extended to employees of many private companies. In the case of Lawson v. FMR LLC, the U.S. Supreme Court recently ruled that Section 806 of Sarbanes-Oxley, which protects employees from retaliation, also applies to private companies, contractors and subcontractors that provide services to public companies. “Retaliation” is broadly defined to include the discharge, demotion, suspension, threatening, harassment or any discrimination against a whistleblower for his or her actions.
Companies should ensure that whistleblower protections are deeply embedded in their compliance and ethics policies, which should encourage whistleblowers to come forward, provide a reporting mechanism, establish investigative procedures to resolve complaints and promote acceptance of anti-retaliation policies throughout the organization.
New rules for companies paying foreign vendors
The Foreign Account Tax Compliance Act (FATCA) went into effect July 1, 2014, and businesses that make payments to foreign vendors or investors must determine whether that payment is subject to FATCA.
The act, created as part of the Hiring Incentives to Restore Employment Act of 2010, requires companies to disclose information related to payments made to organizations outside the U.S., with the goal of identifying and discouraging offshore tax evasion by making payments to overseas accounts more transparent.
Provisions will continue to phase in through 2016.
If your business makes payments to foreign vendors or investors, you can either choose to become compliant, gather information and disclose it to the IRS by filing Form 8966 and 1042-S, or choose not to comply and be subject to a 30 percent withholding penalty on overseas payments.
Rent paid to a foreign entity is exempt from the requirement.