The laws are always changing and we know how hard it is for small businesses to stay on top of them. We came across a couple things that we think WNY arts and culture businesses may not be aware of.

The two areas we are highlighting here are the US Beneficial Ownership Information report and the NYS Paid Sick Leave.

Beneficial Ownership Information

The Beneficial Ownership Information (BOI) report is part of the bipartisan Corporate Transparency Act enacted in 2021 designed to curb illicit financial practices, such as money laundering, drug trafficking, terrorism, and corruption.

The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is requiring all companies doing business in the United States to report information about the individuals who ultimately own or control them.

Filing is a one-time, simple process, is free of charge, and is required for corporations and LLC’s. There are several exemptions, including tax-exempt 501c entities and inactive entities.

Failure to complete the report or submit accurate information could result civil penalties of up to $500 per day or criminal penalties.

The US Department of the Treasury has published a Small Entity Compliance Guide that will walk you through the process. All companies must submit before January 1, 2025 to avoid penalties.

When you are ready to submit your information, you can do so on their website here – https://www.fincen.gov/boi.

NYS Paid Sick Leave

Starting in 2021, all private sector employers, including for-profit and nonprofit companies, of a certain size are required to provide paid sick time to part time employees under the NYS Paid Sick Leave program.

Employers must provide sick leave for all part time employees, including seasonal and temp staff, for a mental or physical illness, injury, or a health condition regardless of whether or not they have been diagnosed. They also must provide sick leave for preventative care such as well visits, annual exams, dental, eye, and other routine appointments.

Paid time off can either be provided up front at the start of the year or can accrue 1 hour of paid sick leave for every 30 hours worked.

What is required of your company?

  • Employers with 4 or fewer employees and net income of $1 million or less in the previous tax year are required to provide up to 40 hours of unpaid sick leave per calendar year.
  • Employers with 4 or fewer employees and a net income of greater than $1 million in the previous tax year are required to provide up to 40 hours of paid sick leave per calendar year.
  • Employers with 5 to 99 employees must provide up to 40 hours of paid sick leave per calendar year.
  • Employers with 100 or more employees must provide up to 56 hours of paid sick leave per calendar year.

You can learn more about this law on the NY.gov website here – https://www.ny.gov/programs/new-york-paid-sick-leave.