Law Changes Coming Dec. 31/Jan. 1
Federal overtime rule invalidated: no change to wage thresholds on Jan. 1
On Nov. 15 the U.S. District Court for the Eastern District of Texas invalidated the Department of Labor’s (DOL) overtime final rule for all employers nationwide. Due to this decision, the minimum salary threshold for overtime exemption reverts to $35,568, and the threshtold for highly compensated employees returns to $107,432. The Labor Department may appeal the decision to the 5th Circuit, but it is expected that the new administration will likely abandon defense of the rule.
In his decision, the judge stated that while the DOL has the authority to define overtime exemptions, “that authority ‘is not unbounded.’” He noted that the 2024 Rule’s minimum salary level “effectively eliminates” the consideration of job duties in favor of a salary-only test. He also mentioned that automatic updates to the salary threshold violate the notice-and-comment rulemaking requirements of the Administrative Procedure Act.
Eggs must be “cage-free” starting Dec. 31
Beginning December 31, 2024, Public Act 132 of 2019 will require that Michigan retailers only sell cage-free shell eggs. The law updated the Animal Industry Act to require shell eggs sold in the state of Michigan to be from cage-free housing systems starting December 31, 2024. The requirement will require suppliers to use a commercially recognized label or marking to indicate compliance. This new requirement does not apply to shell eggs produced by a farm with less than 3,000 egg-laying hens.
The timing is not ideal as other states with cage-free standards are experiencing egg shortages and seeing prices fluctuate as a lingering outbreak of bird flu coincides with traditionally high demand for eggs around the holiday baking season. Suppliers have been moving cage-free eggs from other parts of the country to cover low supply in outbreak areas that only allow the sale of cage-free eggs. Four states currently have cage-free mandates, Michigan joins two others with requirements staring in 2025 which will add additional strain to the current supply of cage-free eggs available.
Sales tax exemption for firearm safety devices expires Dec. 31
Firearm safety devices (trigger locks and gun safes specifically intended for firearms) are exempt from Michigan’s 6% sales tax through Dec. 31, 2024. They become taxable again on Jan. 1, 2025.
Last reminder: Corporate Transparency Act filing due by Dec. 31
Read MRA’s COO and General Counsel’s article on the Corporate Transparency Act here. Learn more about the requirement and file reports directly at www.fincen.gov/boi.
Deadlines and Reminders
- Dec. 31 – Beneficial Ownership Interest filing due per Corporate Transparency Act
- Jan. 1 – Print New Yearly Sales & Use Tax License
- Jan. 1 – Liquor Licensees – Post Updated Age to Purchase Alcohol Sign
- Jan. 1 – Tobacco retailers – Post Updated Age to Purchase Tobacco Sign (optional from We Card)
- Jan. 1 – Minimum Wage increases to $10.56 an hour (could be $12 if HB 6056 restoring the tip credit passes)
- Jan. 1 – MRA scholarship program kicks off, apply through April 1
- Jan. 15 – Open Enrollment for Individual Health Care Coverage deadline
- Jan. 31 – Wage and Tax Statements/Information Returns (W-2, 1099s) give to employees/contractors, submit to IRS Treasury
- Feb. 1 – Post MIOSHA Form 300A – Summary of Work-Related Injuries and Illnesses (if more than 11 employees) between Feb. 1 and April 30.
- Feb. 15 – Michigan Annual Report Due – Limited Liability Companies (LLC) and Professional Limited Liability with LARA
- Feb. 21 – Minimum Wage *may* increase to $12.48 and Earned Sick Time Act take effect without changes unless HB 6056-6057 pass
- Feb. 28 – Michigan Sales, Use and Withholding Tax Annual Return due
Monthly reminders:
- Sales & Use Tax – Monthly & EFT – On or before the 20th day of the following month.
- Withholding Tax – Monthly & EFT – On or before the 20th day of the following month.
- Retailer’s Prepaid Wireless 911 Surcharge – Within 30 days of the close of each month. Receipt of a complete Form 5012 is required regardless of payment method.
Quarterly reminders:
- Corporate Income Tax (CIT) Estimated Returns and Payments (Jan. 15, April 15, July 15, Oct. 15).
- Sales & Use Tax – Quarterly & EFT – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).
- Withholding Tax – Quarterly – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).
