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Hanover’s Perspective

New Federal and Virginia State Reporting Requirements for Small Businesses

In 2024, there are several regulations that should be on small business owners’ radar including the Federal FinCEN BOI requirement and Virginia’s RetirePathVA.

Registering with FinCEN – Beneficial Ownership Information (BOI)

Small businesses will need to register with an agency called the Financial Crimes Enforcement Network (FinCEN) in 2024, as part of an act passed in 2021 called the Corporate Transparency Act.  The Corporate Transparency Act is a law which creates a Beneficial Ownership Information (BOI) reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.

Businesses with more than 20 employees and more than $5 million in sales may qualify for exemptions, but most small businesses are not exempt from registering.  The owners and part-owners of those businesses must register information with FinCEN, such as a photo ID and home address.

Registration is open as of January 1, 2024, however, the deadline for existing businesses has been extended to January 1, 2025.

For more information, visit this online brochure: An Introduction to Beneficial Ownership Information Reporting.

NOTE:  DO NOT RESPOND TO ANY EMAILS SOLICITING THIS INFORMATION!  The Official Financial Crimes Enforcement Network (FCEN) has issued the following alert:

Alert: FinCEN has been notified of recent fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. The fraudulent correspondence may be titled “Important Compliance Notice” and asks the recipient to click on a URL or to scan a QR code. Those e-mails or letters are fraudulent. FinCEN does not send unsolicited requests. Please do not respond to these fraudulent messages or click on any links or scan any QR codes within them.

RetirePathVA

What is it?  RetirePath was created by Virginia state law to expand access to retirement savings and provide more Virginians with a path to economic security.  RetirePath gives employers a simple way to help their employees save for the future, with no employer fees, no fiduciary responsibility, and minimal administrative requirements.

What businesses are required to register?  The program is mandatory for certain Virginia for-profit and non-profit employers. Businesses are required to participate if they have 25 or more eligible employees, have been operating for more than two years, and do not currently offer a workplace retirement savings option.  Employers that already offer a qualified plan or are otherwise exempt from the Commonwealth’s mandate can certify an exemption.

When is the deadline? Under this new state law, certain Virginia businesses are required to either register for RetirePath or offer their own qualified retirement plan. For employers eligible in 2023, the state-mandated registration deadline is Feb. 15, 2024.

Important Note:  RetirePath Virginia sends a series of emails or letters to eligible employers when it’s time to register. These communications include a unique Access Code, registration deadline and instructions.

Employers can visit RetirePathVA.com/employers to learn more.