We previously wrote on the U.S. Department of Labor (DOL)’s 2021 rule publication regarding classification of employees and independent contractors in the context of gig workers. The DOL has again published a new final rule clarifying the test for determining the status of a worker as an employee or an independent contractor. For any business …
General legal help
CORPORATE TRANSPARENCY ACT It’s Time to Report Part 3: The FORM
This is Part 3 of a 3-Part series (Part 1: It’s Time to Get Prepared & Part 2: FAQs) of information we are sending to our small business clients regarding the Corporate Transparency Act (CTA) and its impact on millions of small businesses. The CTA was passed by Congress a couple of years ago and …
Reflections on Co-op Cincy and Cooperative Professionals Guild Conferences in 2023
I recently attended two cooperative-related professional events in 2023: the Co-op Cincy Union Co-op Symposium and the Cooperative Professionals Guild Conference. As someone relatively new to practicing law in the cooperative movement space, I wanted to share my reflections and thoughts following these very inspiring experiences. By starting as an associate attorney with JWPC in …
PATHWAYS TO PURPOSE DRIVEN LEGAL PRACTICE – JACQUELINE’S JOURNEY
Like many of my colleagues in transactional practice who focus on the social enterprise spectrum, the path to my current role was not a straight line. It has however been very true to what I believe in: integrity, justice and fairness, and service to others. I hope this personal post gives you some insight on …
Patrons, Patronizing, Patronage Dividend
These are all terms used in the cooperative business community and sometimes their meanings are unclear or jumbled. This blog will discuss the definitions of these terms with examples of how they are used by different types of cooperatives. A patron patronizes a cooperative and receives a patronage dividend at the end of the year. …
Updated Section 1042 Tax Benefits
There is a section of the Internal Revenue Code (IRC) that provides some tax benefits for people who sell their companies to either an ESOP or to a worker cooperative. This blog will explain how 1042 provides tax advantages when selling to a cooperative. If you are thinking of becoming employee-owned or selling your business to …
The Department of Labor “new” final rule for gig workers
On May 5th, the U.S. Department of Labor (DOL) announced the withdrawal of the “Independent Contractor Rule” which had been adopted by the Trump administration. The rule was expected to be effective on March 8, 2021, but a presidential memo, dated January 20, 2021, has postponed it for two weeks and is expected to open …
How patronage is really paid out to cooperative members: qualified and nonqualified written notice of allocations (1/2)
Recently, I had a few clients asking about the distinction between qualified and nonqualified written notice of allocation. Tax season being right around the corner, it feels like a good opportunity to talk about those. The USDA has some wonderful material[1] explaining the definition and use of both notices of allocation, this post and the …
Cooperative Equity Capital, Income and Patronage: How They Work Together
Cooperatives have three areas of accounting that need to be understood by their members as the cooperatives are formed and as they are operated. Cooperatives obtain and track equity capital, usually through the members. As a business entity, the cooperative generates income through the products its sells or the services it provides to clients and …
Updates to PPP under the Economic Aid Act
The Economic Aid Act, passed on December 27th, 2020, expanded the Paycheck Protection Program created by the CARES Act. The Economic Aid Act authorized $284 billion in new funds for first draw and second draw funds of PPP. The Small Business Administration (SBA) and U.S. Treasury have issued new guidance on how the changes will …