Important Clarity Updates - Join our 401K Retirement Plan!

/

AFFORDABLE 401K FOR SMALL BUSINESSES AND NONPROFITS

We are ready to help you grow and save this summer and beyond! Clarity now offers the option to join our Employer Exchange 401k Retirement Plan.

Putting money away for your retirement is essential, but many have worries about the costs it takes to put a plan in place. After a year of research and looking for solutions for our own employees, we landed on an Employer Exchange plan that brings the power of a retirement plan to a company without the prohibitive annual costs to implement. 

A well-designed plan can help attract and keep talented employees as well as provide a tool to maximize benefits as a business owner. 

Joining our Exchange has so many benefits:

  • Each organization has its own tailored plan design that fits them

  • Can maximize annual contributions: 2022 max = $20,500 (50+yrs addt’l $6500)

  • Access to pre-tax and after-tax vehicles

  • Ability to transfer prior plans

  • Low employer annual plan fees and lower employee plan fees

  • Onboarding and ongoing education opportunities

We’ve done all the work so you don’t have to! Plug and play with our plan so you and your employees can take advantage of the investment that makes the most sense for you. 

If you are interested and would like additional information or to implement a retirement plan, please reach out to Lyvia Hill at lyvia@clarityei.com.

New Standard Lease Accounting

Does your company lease office space, equipment, or vehicles? If you issue financial statements based on generally accepted accounting principles (GAAP), the new lease accounting standards significantly impact accounting for those leases.

The new standard, Accounting Standards Codification (ASC) 842, requires virtually all leases to be recognized on the balance sheet, which substantially changes a company’s balance sheet and impacts its financial ratios.

In order to stay compliant, we’ll need your help to identify these kinds of transactions. 
The most common types of leases are vehicles, phones, copiers, modems, fax machines, computer systems, equipment, and rentals of any kind. Clarity needs to know:

  • How many leases your company has

  • What are those leases?

  • When did the lease start?

  • What stage is the lease in?

  • What is your liability payment each month per lease?

Your homework is to provide your Clarity contact with a copy of those lease contracts and of course, contact us with any questions!

STANDARD OCCUPATIONAL CLASSIFICATION CODES (SOC)

What is it?
Standard Occupational Classification Codes (SOC) is a federal coding system used to identify occupations and workers. Data is used to analyze workforce demand and evaluate the effectiveness of training programs. Click here for more information.

Why?
Washington State House Bill 2308-SOC codes are implemented into quarterly tax reports. In addition, Washington State is following in the footsteps of other states.

When?
Mandatory reporting for all employees when you file your 2022 Fourth Quarter due January 2023.

Where to file?
SAW: Employment Security Department website. Under My Unemployment Insurance Tax (new EAMS singles) provided by Employment Security Dept.

How?

  • Based on what each employee’s main job title is, look up SOC Code per title on this link: O*NET OnLine (onetonline.org) under the Occupation Keyword Search bar.

  • Use only the first (6) numbers of the SOC Code for reporting. (1) code per Employee

  • Please provide the SOC code for each employee to Clarity no later than August 31, 2022, for Q4 2022 reporting purposes. Please notify Clarity if an employee has changed job positions as soon as possible.

Optional Midyear IRS Mileage Increase

For the final 6 months of 2022, the Federal standard mileage rate for business travel has increased to 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates are effective as of July 1st.

The IRS has not yet released the standard mileage rates for 2023. The rates will be updated in December for the following year.

Please note: Organizations that are getting mileage reimbursed through state grants will continue to be reimbursed at the Washington State rate of 58.5 without an increase.