July 10, 2025
Rich Howard, Chairman Emeritus of Kreston Global, shared his experience following his visit to Puerto Rico for the Latin America Conference.
Liza Robbins, Chief Executive of Kreston Global, shared her experience following her visit to Puerto Rico for the Latin America Conference. 
January 12, 2025
Income Tax Returns – Puerto Rico Treasury Department
The Puerto Rico Internal Revenue Code (“Code”), Section 1061.16, establishes the time and place for filing the required income tax returns with the Puerto Rico Treasury Department, being every April 15 the main income tax due date for individuals and corporate taxpayers with calendar year-end. For those years in which the due date falls on a holiday or weekend, the due date to file will be the next labor day. Therefore, the due date to file the 2024 income tax return will be April 15, 2025. For those corporations reporting based on fiscal year-end, the time for filing will be on or before the fifteenth (15th) day of the fourth (4th) month following the close of the fiscal year.
The Code allow taxpayers to request an automatic 6th month extension of time to file the income tax return by completing and filing the Form SC 2644. If requested on or before the original due date of the return, the extended due date for individuals and calendar year-end corporate returns will be on October 15, 2025. It is important to note that extending the time for filing does not extend the time for paying the tax due. Any balance of tax due needs to be paid on time along with the extension to avoid interest and surcharges.
For those entities under the Chapter 7 of the Code (“pass-through/partnership” entities), the time to file the required Informative Income Tax Return Pass-through Entity, Form 480.2(EC) is March 17, 2025 for calendar year-end taxpayers since the due date established by the Code of March 15, 2025 falls on Saturday. For fiscal year-end pass-through/partnership entities, the time for filing will be on or before the fifteenth (15th) day of the third (3rd) month following the close of the fiscal year. Like individuals and corporations, the pass-through/partnership entities are allowed to request the automatic 6th month extension of time to file the income tax return. If requested, the extended due date for those calendar year-end taxpayers will be September 17, 2025.
Electronic filing mandates are required for all individuals and most of the corporate and pass-through/partnership income tax returns (with few paper-filing exceptions).
Also, any individual having 2025 estimated income tax requirements, will be required to pay four (4) equal installments on the following dates: April 15, 2025, June 16, 2025, September 15, 2025, and January 15, 2026. For corporations, partnerships, and other entities, the four (4) estimated tax installments are due on the fifteenth 15th day of the fourth month of the taxable year (Q1), fifteenth 15th day of the sixth month of the taxable year (Q2), fifteenth 15th day of the ninth month of the taxable year (Q3) and fifteenth 15th day of the twelfth month of the taxable year (Q4). All persons with requirements to pay estimated tax must do so via electronic means only by using the Unified System of Internal Revenue portal (SURI).
Corporate Annual Report – Department of State
The General Corporation Law requires that any foreign corporation authorized to do business in Puerto Rico, as well as domestic corporations, comply with their Corporate Annual Report and payment of the annual fees. The 2024 Corporate Annual Report must be completed and e-filed through the Department of State’s portal on or before April 15, 2025 original due date. An extension of time to file valid up to June 16, 2025 can be requested by making an advance payment of the Annual Report fees on or before the original due date. An additional two (2) month extension can be purchased ($30 fee) within the period April 15, 2025 through June 16, 2025. The additional two (2) month extension will be valid up to August 15, 2025.
Also, Limited Liability Companies must pay their annual dues on or before April 15, 2025 through the Department of State’s portal.
Volume of Business Declaration – Municipality
The Puerto Rico Municipal Code requires that any person engaged in trade or business within the territorial limits of a municipality, pay the corresponding gross tax receipts through the filing of the Volume of Business Declaration, Form OCAM PA 01. The due date to file the declaration is April 22, 2025. The payment of the tax can be made: 1) in full on or before April 22, 2025 with a 5% discount or, 2) in two (2) equal installments, without the 5% discount, on or before the following dates:
The Municipal Code allows taxpayers to file a 6-month extension of time to file the volume of business declaration, Form OCAM PA03. If requested, the extended due date is valid up to October 22, 2025, unless a letter from the Municipality is received granting a lesser period.
It is important to mention that some municipalities implemented electronic mandates in terms of filing and payment of the declaration. If you have any questions regarding the requirements in your municipality, please contact us.
Personal Property Tax Return – Municipal Revenue Collection Center (CRIM)
The Puerto Rico Municipal Code requires that any person engaged in trade or business and owning personal property in Puerto Rico complete and file the Personal Property Tax Return, Form AS-29i. The assessment date of the personal property value is made every January 1st. The due date to file the return and pay any balance due related to tax year 2024 is May 15, 2025.
The Municipal Code allows taxpayers to file a 3-month extension of time to file the personal property tax return. If requested, the extended due date to file the return will be August 15, 2025. It is important to note that extending the time for filing does not extend the time for paying the tax due. Any balance of tax due needs to be paid on time along with the return or extension to avoid interest and surcharges.
Any individual or juridical person having 2025 personal property estimated tax requirements, will be required to pay four (4) equal installments on or before the following dates: August 15, 2025, November 15, 2025, February 15, 2026, and May 15, 2026 (along with the return or extension).
CRIM imposes electronic mandates for the filing and payment of personal property tax, and therefore, any filing or payment must be made through the established CRIM’s portal.
Informative Bulletin
At KRESTON PR, LLC we are ready to assist you. Contact us for additional information.
KRESTON PR, LLC
1509 FD Roosevelt Avenue Suite 303 / Guaynabo, PR 00968-2612
PO Box 193488 / San Juan, PR 00919-3488
Tel. (787) 646-4611 / Fax (787) 764-8688 Web: www.krestonpr.com / www.kreston.com
Email Taxes: fsanchez@krestonpr.com
IMPORTANT DISCLAIMER: This bulletin and its content do not constitute advice. It is intended for information purposes only and should not be regarded as specific advice. Accordingly, no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors and ensuring that such advice specifically relates to their particular circumstances.
“People do business, with people they know, like and trust”
November 8, 2024
[via Kreston Global]
The second edition of Going Global is now available, offering key insights into the mid-market outlook in North America. This edition explores current trends, challenges, and opportunities for mid-sized businesses across the region.
Download the latest magazine here
Kreston Global has an impressive footprint in the North America region, with over 160 offices and more than 7, 000 staff to support businesses expanding into the US, Canada and the Bahamas. With one of the largest US-listed advisory and assurance organizations, CBIZ, as part of our Network, together with our Canadian firm Kreston GTA and Kreston Bahamas in the Caribbean, North American clients and new entrants can tap into considerable knowledge and location coverage across this region.
In this issue of Going Global, the North American edition, we explore the business-as-usual attitude in the US, a compliance tangle post-Business-License launch in the Bahamas and a halo effect south of the US border as North American operations pull their supply chain closer to home.
You can download the magazine, or find the articles online here:
Jan Smallenbroek, Managing Director and National Leader of the International Tax & Transfer Pricing Practice at CBIZ, Kreston Global’s US firm, sheds light on how mid-market businesses are taking the economic headwinds, and the answer is, in their stride.
CBIZ, Inc. has taken a significant step forward in empowering business leaders by launching its latest innovation, CBIZ D@taNEXUS. Rob McGillen, Chief Innovation Officer at CBIZ Financial Services, discusses the new suite of data analytics and automation services and how it is designed to help businesses, particularly in the mid-market segment, transform complex, multi-source information into actionable insights. By enabling faster, more informed decision-making, CBIZ D@taNEXUS is set to redefine how companies manage their data and operations.
Bahamas Business License throws mid-market a compliance challenge
US firms turn to nearshoring for labor
Nearshoring, particularly in Mexico, is becoming an increasingly popular answer for US firms who are struggling with a labor shortage. US companies are looking south of the border as they search for new ways to stay profitable. A big push to nearshore in Mexico comes from the labor market, but Veronica Quintana, Director at CBIZ, finds that strong cultural links between Mexico and America are also adding to the allure.
KRESTON PR, LLC
1509 FD Roosevelt Avenue Suite 303 / Guaynabo, PR 00968-2612
PO Box 193488 / San Juan, PR 00919-3488
Tel. (787) 646-4611 / Fax (787) 764-8688 Web: www.krestonpr.com / www.kreston.com
Email Taxes: fsanchez@krestonpr.com
IMPORTANT DISCLAIMER: This bulletin and its content do not constitute advice. It is intended for information purposes only and should not be regarded as specific advice. Accordingly, no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors and ensuring that such advice specifically relates to their particular circumstances.
INFORMATIVE BULLETINS
At KRESTON PR, LLC we are ready to assist you if needs any help. Contact us for additional information.
“People do business, with people they know, like and trust”
June 20, 2024
Knowing You – The Puerto Rico Treasury Department (PRTD) issued the Internal Revenue Circular Letter to announce the Back-to-School free sales and use tax for the period 24-25. The days established for the free tax period is:
July 19 and July 20, 2024 – First semester
January 10 and January 11, 2025 – Second semester
During this period, the school uniforms and school materials can be acquired exempt from sales and use tax. Also, hard copy and electronic books (school / textbooks) continue to be exempt from sales and use tax during the entire year. Purchases can be made by mail, phone, email, or internet and can qualify for the exemption to the extent the payment and delivery of the product to the buyer is completed during the exemption period.
KRESTON PR, LLC
1509 FD Roosevelt Avenue Suite 303 / Guaynabo, PR 00968-2612
PO Box 193488 / San Juan, PR 00919-3488
Tel. (787) 646-4611 / Fax (787) 764-8688 Web: www.krestonpr.com / www.kreston.com
Email Taxes: fsanchez@krestonpr.com
IMPORTANT DISCLAIMER: This bulletin and its content do not constitute advice. It is intended for information purposes only and should not be regarded as specific advice. Accordingly, no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors and ensuring that such advice specifically relates to their particular circumstances.
INFORMATIVE BULLETINS
At KRESTON PR, LLC we are ready to assist you if needs any help. Contact us for additional information.
“People do business, with people they know, like and trust”
March 21, 2024
Puerto Rico has seen GDP increase of 11% growth in its economy since 2019, despite the challenges felt globally from COVID 19, to global recession and supply chain challenges . So far in 2024 the International Monetary Fund records the island having the highest GDP per capita in the Caribbean.
Strategic location
Puerto Rico (PR) can claim several advantages that can be attributed to this growth. It is a strategic Caribbean geographic location, offering political stability, modern infrastructure, and a highly skilled bilingual workforce (Official languages are Spanish and English). It is the main air and sea access hub in the Caribbean, with multiple flight options to and from the major cities of the United States, Latin America, and Europe.
Unincorporated United States territory
Secondly, Puerto Rico enjoys the United States constitutional, legal, financial, and regulatory protection, including among others, intellectual property, Homeland Security matters, and banking system. The U.S. dollar is also the official currency, and no passport is required for U.S. citizens.
Recent tax incentives
Thirdly, Puerto Rico enjoys fiscal autonomy and has a number of tax incentives to attract investment. Puerto Rico recently published legislation designed to boost remote PR workers. The governor, Pedro Pierluisi, signed the new act into law on January 17, 2024. This legislation builds on Act 52-2022, targeting the enhancement of the foreign private sector’s remote workforce in PR.
Tax incentives for local and foreign companies and individuals
During 2019 PR enacted legislation to compile all previous PR tax exemption laws into Act 60, that has attracted foreign and local businesses, and non-resident high net worth individuals who relocate to PR, contributing to the overall economic health of the island. The benefits cover a number of industries attractive to investors, most notably:
1. Export of Goods and/ or Services – Act 60- 2019 (Formerly Act 20) – Available to businesses established in Puerto Rico that offer services or sell goods to customers or clients outside Puerto Rico.
2. Manufacturing, Research and Development – Act 60-2019 (Formerly Act 73) – Available for manufacturing, R&D and high-tech industries that invest in the island.
3. Creative Industries – Act 60-2019 (Formerly Act 27) – Available for entities engaged in film production, postproduction, and similar creative projects.
4. Green Energy – Act 60-2019 (Formerly Act 83-325) – Incentive is available for entities engaged in the production/sale of green energy, sale of equipment, assembly, or installation of green energy equipment.
5. Visiting Economy (Tourism – Formerly Act 74) – Available for businesses engaged in tourism activities.
Income Tax rate
Among its benefits, Act 60 grants a reduced income tax rate from 37 .5% to 4% on eligible activities as well as 100% exemption on distributions from earnings and profits on those activities, designed to stimulate growth in key industries and attract investors to the country. The tax decree also provides exemptions on indirect taxes (municipal license, property taxes, excise tax, among others) that ranges from 50% to 100% of exemption, making investment even more appealing to local and foreign businesses.
Individual resident investor and other tax incentives
Non-resident high net worth individuals who relocate to Puerto Rico also benefit from additional tax grant benefits under Act 60. Also, there are other tax incentives for those engaged in providing highly skilled medical professional services (physicians), professional researchers or scientists, small and medium enterprises (PYMES), young entrepreneurs, public porters of air transportation, maritime transport services, infrastructure investment and agriculture.
Low tax jurisdiction
This legislative update is a key component of Puerto Rico’s strategy to stimulate economic growth, attract global talent, and encourage the development of a diverse and resilient economy.
FRANK SÁNCHEZ RUIZ – CPA, CMA, CIA, CGFM, CGMA
Managing Member, Kreston PR, Puerto Rico
Informative Bulletin
At KRESTON PR, LLC we are ready to assist you. Contact us for additional information.
KRESTON PR, LLC
1509 FD Roosevelt Avenue Suite 303 / Guaynabo, PR 00968-2612
PO Box 193488 / San Juan, PR 00919-3488
Tel. (787) 646-4611 / Fax (787) 764-8688 Web: www.krestonpr.com / www.kreston.com
Email Taxes: fsanchez@krestonpr.com
IMPORTANT DISCLAIMER: This bulletin and its content do not constitute advice. It is intended for information purposes only and should not be regarded as specific advice. Accordingly, no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors and ensuring that such advice specifically relates to their particular circumstances.
“People do business, with people they know, like and trust”
February 6, 2024
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued a Final Rule addressing reporting obligations concerning beneficial ownership information (“BOI”) under the Corporate Transparency Act (“CTA”) aligning with the US federal government’s aim to mitigate corruption, money laundering, terrorism, fraud, and other illicit activities. Consequently, certain types of U.S. and foreign entities must disclose BOI to FinCEN regarding their beneficial owners and individuals responsible for registering or forming the Reporting Companies (as defined below).
In this alert, we summarized the applicability of the CTA rule to Puerto Rico-organized entities (i.e., corporations, limited liability companies or any other similar entity created by the filing of a document with a secretary of state or similar office under the law of the state), with a focus on provisions of the CTA that entered into effect on January 1, 2024.
Entities organized both in the U.S. and outside the U.S. (including Puerto Rico) maybe subject to the CTA’s reporting requirements. Companies that do not fall within one or more of the twenty-three (23) exemptions set forth in the Final Rule (“Reporting Companies”), must file reports with FinCEN which include personal information on beneficial owners and control persons.
Reporting Companies and Beneficial Ownership Information
There are two types of Reporting Companies: (1) domestic reporting companies, and (2) foreign reporting companies.
A beneficial owner is defined as (i) an individual who, directly or indirectly, exercises “substantial control” over the entity (including, but not limited to, senior officers) or (ii) owns or controls at least 25% of the ownership interests of the reporting company.
The CTA Final Rule refers to “substantial control” of a reporting company if it meets any of the following criteria:
1. the individual is a Senior Officer of the reporting company (i.e. President, CEO, General Counsel, COO, CFO, or any other position that performs a similar function as any of the above officers)
2. the individual has authority to appoint or remove any Senior Officer (as defined in the CTA and CTA Final Rule) or a majority of directors of the reporting company
3. the individual is an important decision-maker (regarding the reporting company’s business, finances, or structure), or
4. the individual has any other form of substantial control over the reporting company.
Furthermore, the CTA does not consider the following a beneficial owner: a minor (though the parent or guardian’s information must be reported); an individual acting solely as a nominee, intermediary, custodian, or agent on behalf of another individual; certain employees; an individual whose only interest in the reporting company is through inheritance; or a creditor of a reporting company.
What type of information is required to be reported?
For the BOI report, the reporting company must provide: its full legal name, trade names, or D/B/As, a complete US physical and mailing address, its jurisdiction of formation (domestic or foreign, as applicable), the state in which it first registered to conduct business (only applicable to foreign Reporting Companies), and, its Employer Identification Number (EIN), Taxpayer Identification Number (TIN), or foreign identification number (if it does not have a TIN).
Also, for the beneficial owner, the reporting company must provide: their full legal name, their birthdate, complete US physical and mailing address, and, unique identification number issued by the state or foreign jurisdiction (i.e., a valid passport; a current identification issued by a state or local government; a current driver’s license issued by a state; or a current foreign passport, if none of the other documents are available).
An image of the unique identification document must be included with the BOI report (BOI Information). Individuals may obtain FinCEN identifiers by voluntarily submitting the BOI Information to FinCEN. Once a beneficial owner has obtained a FinCEN identifier, reporting companies may report it in place of the otherwise required pieces of personal information.
Deadline to file the BOI Report with FinCEN
Reporting Companies organized or authorized to conduct business before January 1, 2024 will have until January 1, 2025 to file their initial BOI reports. Reporting companies organized or authorized to conduct business on or after January 1, 2024, but before January 1, 2025, will have 90 days from the date of their organization (or authorization to do business) to file their BOI reports with FinCEN.
As of January 1, 2025, reporting companies organized or authorized to do business on or after such date must file their BOI reports within 30 days after the date of their organization (or authorization to do business).
Once the initial report is filed with FinCEN, Reporting Companies will have to make additional filings if there are any changes to their reported information, which must be filed within 30 days after each change
Penalties for failure to comply with the reporting requirement
Puerto Rico organized entities, as well as foreign entities authorized to conduct business in the Commonwealth of Puerto Rico, are advised to review the CTA and CTA Final Rule to determine whether they will qualify as Reporting Companies and to comply with the required deadlines.
Failure by a reporting company to file a complete or updated BOI to FinCEN, or the willful provision of or attempt to provide false or fraudulent BOI may result in civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, and/or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000 (which does not include potential state penalties).
If you need assistance or additional information regarding this filing, kindly, let us know as soon as possible.
Informative Bulletin
At KRESTON PR, LLC we are ready to assist you. Contact us for additional information.
KRESTON PR, LLC
1509 FD Roosevelt Avenue Suite 303 / Guaynabo, PR 00968-2612
PO Box 193488 / San Juan, PR 00919-3488
Tel. (787) 646-4611 / Fax (787) 764-8688 Web: www.krestonpr.com / www.kreston.com
Email Taxes: fsanchez@krestonpr.com
IMPORTANT DISCLAIMER: This bulletin and its content do not constitute advice. It is intended for information purposes only and should not be regarded as specific advice. Accordingly, no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors and ensuring that such advice specifically relates to their particular circumstances.
“People do business, with people they know, like and trust”
January 22, 2024
Income Tax Returns – Puerto Rico Treasury Department
The Puerto Rico Internal Revenue Code (“Code”), Section 1061.16, establishes the time and place for filing the required income tax returns with the Puerto Rico Treasury Department, being every April 15 the main income tax due date for individuals and corporate taxpayers with calendar year-end. For those years in which the due date falls on a holiday or weekend, the due date to file will be the next labor day. Therefore, the due date to file the 2023 income tax return will be April 15, 2024. For those corporations reporting based on fiscal year-end, the time for filing will be on or before the fifteenth (15th) day of the fourth (4th) month following the close of the fiscal year.
The Code allow taxpayers to request an automatic 6th month extension of time to file the income tax return by completing and filing the Form SC 2644. If requested on or before the original due date of the return, the extended due date for individuals and calendar year-end corporate returns will be on October 15, 2024. It is important to note that extending the time for filing does not extend the time for paying the tax due. Any balance of tax due needs to be paid on time along with the extension to avoid interest and surcharges.
For those entities under the Chapter 7 of the Code (“pass-through/partnership” entities), the time to file the required Informative Income Tax Return Pass-through Entity, Form 480.2(EC) is March 15, 2024 for calendar year-end taxpayers. For fiscal year-end passthrough/partnership entities, the time for filing will be on or before the fifteenth (15th) day of the third (3rd) month following the close of the fiscal year. Like individuals and corporations, the pass-through/partnership entities are allowed to request the automatic 6th month extension of time to file the income tax return. If requested, the extended due date for those calendar year-end taxpayers will be September 16, 2024 since September 15, 2024 falls on Sunday.
Electronic filing mandates are required for all individuals and most of the corporate and passthrough/partnership income tax returns (with few paper-filing exceptions).
Also, any individual having 2024 estimated income tax requirements, will be required to pay four (4) equal installments on the following dates: April 15, 2024, June 15, 2024, September 15, 2024, and January 15, 2025. For corporations, partnerships, and other entities, the four (4) estimated tax installments are due on the fifteenth 15th day of the fourth month of the taxable year (Q1), fifteenth 15th day of the sixth month of the taxable year (Q2), fifteenth 15th day of the ninth month of the taxable year (Q3) and fifteenth 15t day of the twelfth month of the taxable year (Q4). All persons with requirements to pay estimated tax must do so via electronic means only by using the Unified System of Internal Revenue portal (SURI).
Corporate Annual Report – Department of State
The General Corporation Law requires that any foreign corporation authorized to do business in Puerto Rico, as well as domestic corporations, comply with their Corporate Annual Report and payment of the annual fees. The 2023 Corporate Annual Report must be completed and e-filed through the Department of State’s portal on or before April 15, 2024. An extension of time to file valid up to June 14, 2024 can be requested by making an advance payment of the Annual Report fees. An additional two (2) month extension can be purchased from April 16, 2024 through June 14, 2024 for the Annual Report (1st extension). The additional two (2) month extension will be valid up to August 13, 2024.
Also, Limited Liability Companies must pay their annual dues on or before April 15, 2024
through the Department of State’s portal.
Volume of Business Declaration – Municipality
The Puerto Rico Municipal Code requires that any person engaged in trade or business within the territorial limits of a municipality, pay the corresponding gross tax receipts through the filing of the Volume of Business Declaration, Form OCAM PA 01. The due date to file the declaration is April 22, 2024. The payment of the tax can be made: 1) in full on or before April 22, 2024 with a 5% discount or, 2) in two (2) equal installments, without the 5% discount, on or before the following dates:
The Municipal Code allows taxpayers to file a 6-month extension of time to file the volume of business declaration, Form OCAM PA03. If requested, the extended due date is valid up to October 22, 2024, unless a letter from the Municipality is received granting a lesser period.
It is important to mention that some municipalities implemented electronic mandates in terms of filing and payment of the declaration. If you have any questions regarding the requirements in your municipality, please contact us.
Personal Property Tax Return – Municipal Revenue Collection Center (CRIM)
The Puerto Rico Municipal Code requires that any person engaged in trade or business and owning personal property in Puerto Rico complete and file the Personal Property Tax Return, Form AS-29i. The assessment date of the personal property value is made every January 1st. The due date to file the return and pay any balance due related to tax year 2023 is May 15, 2024.
The Municipal Code allows taxpayers to file a 3-month extension of time to file the personal property tax return. If requested, the extended due date to file the return will be August 15, 2024. It is important to note that extending the time for filing does not extend the time for paying the tax due. Any balance of tax due needs to be paid on time along with the return or extension to avoid interest and surcharges.
Any individual or juridical person having 2024 personal property estimated tax requirements, will be required to pay four (4) equal installments on the following dates: August 15, 2024, November 15, 2024, February 15, 2025, and May 15, 2025 (along with the return or extension).
CRIM imposes electronic mandates for the filing and payment of personal property tax, and therefore, any filing or payment must be made through the established CRIM’s portal.
Informative Bulletin
At KRESTON PR, LLC we are ready to assist you. Contact us for additional information.
KRESTON PR, LLC
1509 FD Roosevelt Avenue Suite 303 / Guaynabo, PR 00968-2612
PO Box 193488 / San Juan, PR 00919-3488
Tel. (787) 646-4611 / Fax (787) 764-8688 Web: www.krestonpr.com / www.kreston.com
Email Taxes: fsanchez@krestonpr.com
IMPORTANT DISCLAIMER: This bulletin and its content do not constitute advice. It is intended for information purposes only and should not be regarded as specific advice. Accordingly, no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors and ensuring that such advice specifically relates to their particular circumstances.
“People do business, with people they know, like and trust”
January 16, 2024
[News Release via US Department of Labor)
Rescinds 2021 independent contractor rule; replaces it with analysis consistent with caselaw
WASHINGTON – On January 9th, 2024, the U.S. Department of Labor announced a final rule to help employers and workers better understand when a worker qualifies as an employee and when they may be considered an independent contractor under the Fair Labor Standards Act.
The rule provides guidance on proper classification and seeks to combat employee misclassification, a serious problem that impacts workers’ rights to minimum wage and overtime pay, facilitates wage theft, allows some employers to undercut their law-abiding competition and hurts the economy at-large.
“Misclassifying employees as independent contractors is a serious issue that deprives workers of basic rights and protections,” explained Acting Secretary of Labor Julie Su. “This rule will help protect workers, especially those facing the greatest risk of exploitation, by making sure they are classified properly and that they receive the wages they’ve earned.”
The guidance provided by the final rule aligns with longstanding judicial precedent on which employers have previously relied to determine a worker’s status as either an employee or independent contractor. The new rule will preserve essential worker rights and provide consistency for entities covered by the Fair Labor Standards Act.
The new “independent contractor” rule restores the multifactor analysis used by courts for decades, ensuring that all relevant factors are analyzed to determine whether a worker is an employee or an independent contractor.
The rule addresses six factors that guide the analysis of a worker’s relationship with an employer, including:
The rule separately rescinds the 2021 Independent Contractor Rule that the department believes is not consistent with the law and longstanding judicial precedent.
In crafting the new rule, the department’s Wage and Hour Division considered feedback provided by stakeholders at forums in the summer of 2022 and during the comment period after the proposal’s announcement in October 2022. The final rule takes effect on March 11, 2024.
KRESTON PR, LLC
1509 FD Roosevelt Avenue Suite 303 / Guaynabo, PR 00968-2612
PO Box 193488 / San Juan, PR 00919-3488
Tel. (787) 646-4611 / Fax (787) 764-8688 Web: www.krestonpr.com / www.kreston.com
Email Taxes: fsanchez@krestonpr.com
IMPORTANT DISCLAIMER: This bulletin and its content do not constitute advice. It is intended for information purposes only and should not be regarded as specific advice. Accordingly, no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors and ensuring that such advice specifically relates to their particular circumstances.
INFORMATIVE BULLETINS
At KRESTON PR, LLC we are ready to assist you if needs any help. Contact us for additional information.
“People do business, with people they know, like and trust”
September 28, 2023
Kreston Global has developed an Impact Plan that will help us become a more sustainable network and to create “positive impact.” It is designed to help us live our Purpose and is underpinned by our values.
Kreston Global recently published their first review of achievements to date against the 2022 Impact Plan.
Click the link below to read the full report.
>> Read Kreston Global Impact Plan report <<
Kreston Global connects ambitious and enlightened people from the entrepreneurial business community, to promote positive impact around the world.
They have chosen to align with 7 key UN sustainable development goals that are specifically appropriate for the network and they have laid out a plan in 4 main areas: Planet, People, Prosperity and Partnerships. The goals we align with are:
Learn more: https://www.kreston.com/about-kreston-global/sustainability/impact-plan/
KRESTON PR, LLC
1509 FD Roosevelt Avenue Suite 303 / Guaynabo, PR 00968-2612
PO Box 193488 / San Juan, PR 00919-3488
Tel. (787) 646-4611 / Fax (787) 764-8688 Web: www.krestonpr.com / www.kreston.com
Email Taxes: fsanchez@krestonpr.com
IMPORTANT DISCLAIMER: This bulletin and its content do not constitute advice. It is intended for information purposes only and should not be regarded as specific advice. Accordingly, no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors and ensuring that such advice specifically relates to their particular circumstances.
INFORMATIVE BULLETINS
At KRESTON PR, LLC we are ready to assist you if needs any help. Contact us for additional information.
“People do business, with people they know, like and trust”
