On June 30, 2022, after passage by the State Senate, New Jersey Governor Phil Murphy signed the Fiscal Year 2023 Appropriations Act, also known as the State’s budget for the coming fiscal year.  At $50.6 billion, it is the largest budget in the State’s history and includes a record $6.8 billion surplus.

On January 28, 2022, New Jersey Governor Phil Murphy signed bills S844 and S2533, raising the threshold for nonprofit audits from $500,000 to $1M, effective immediately. Therefore, New Jersey nonprofits whose gross receipts exceed $500,000, but do not exceed $1M, no longer need an audit.

Businesses have been on a roller coaster these past two years. In addition to managing the economic fallout from COVID-19, legislators passed dozens of tax laws and stimulus packages that required management to make important financial decisions on the fly. So, as we enter the 2022 tax filing season, let’s recap the various COVID-19 relief packages and how some of the provisions could impact the preparation and filing of your business taxes.

Small businesses are an essential part of New Jersey’s economy, providing needed products and services and creating important employment opportunities. The Garden State ranks 11th in the number of small businesses within its borders, totaling just under 908,000 enterprises. In fact, 99.6% of companies located within the state are small businesses, accounting for 49% of the overall employment. Those with 20 employees or less constitute the largest share of small business employment of these companies.

This post updates previously published content regarding legislation that would raise the threshold for nonprofit audits from $500,000 to $1M. Assembly Bill 4635 (AB4635) passed the New Jersey legislature on December 20, 2021, and now heads to Governor Murphy for further action.

The conditions created by the COVID-19 pandemic forced many businesses to make changes to adapt to the “new normal.” For example, the stay-at-home orders, social distancing requirements, and other customer/employee safety measures resulted in limiting the number of employees on the production floor, installing new barriers to prevent transmission, adding sanitization protocols, and much more. At the same time, office buildings were virtually empty as employees were permitted to work from home under remote work policies.

The Biden Administration’s Build Back Better Act (the Act) is designed to reduce costs, create new jobs, and cut taxes for working families. In addition, there are proposed investments in health and childcare, higher education, workforce training, and teachers and schools. The cost of the legislation, which is estimated at $3.5T, will be paid for by increased taxes on corporations and the wealthiest Americans.

Since earlier this year, the Biden Administration has been pursuing a legislative agenda that focuses on COVID-19 economic recovery and re-energizing the American economy. It started with the American Rescue Plan Act and has continued with several other proposals culminating in the Build Back Better Act (the Act). The Act is designed to reduce costs, create new jobs, and cut taxes for working families. There are proposed investments in health and childcare, higher education, workforce training, and teachers and schools.

Recently, the IRS announced that victims of Hurricane Ida in various parts of New Jersey, New York, and Pennsylvania now have until January 3, 2022, to file individual and business tax returns and make certain tax payments.  The tax relief is being offered to taxpayers in any areas designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance.

The U.S. Small Business Administration’s (SBA), 8(a) Business Development Program, offers disadvantaged small businesses access to sole source and other government contracts. Program participants enjoy several benefits that make it easier to win work with the federal government, the details of which we have summarized below.