In need of end-of-year CEU credits and interested in learning more about extended compensation benefits in North Carolina? Contact one of our workers’ compensation defense attorneys for a Lunch and Learn!
The Fix is In?? The Tale of Extended Compensation has been approved for 1 CEU North Carolina credit, and features the history of extended compensation benefits in North Carolina with recommendations from a Vocational Rehabilitationist.
By wrlaw
Planning for the future of a loved one with special needs is a critical task that demands careful consideration. Many North Carolina families are unaware of the estate planning tools at their disposal, specifically Special Needs Trusts. These trusts provide an efficient way to ensure a better quality of life for your loved one while preserving their eligibility for government benefits.
A Special Needs Trust (SNT) is a legal instrument designed to manage assets for the benefit of a person with disabilities. This type of trust aims to supplement, rather than replace, governmental assistance programs such as Medicaid or Supplemental Security Income (SSI). The trustee manages the assets for the benefit of the disabled individual while ensuring that the assets are not counted for means-tested programs.
A Special Needs Trust becomes crucial in several circumstances:
Leaving an outright inheritance can disqualify your loved one from receiving essential government benefits. A Special Needs Trust allows them to inherit assets without affecting their eligibility.
If your loved one receives a significant amount of money due to personal injury or other litigation settlements, the sum should ideally go into an SNT to protect their financial future.
If you or other family members wish to gift assets during your lifetime, placing them in an SNT ensures these gifts won’t jeopardize the individual’s eligibility for government programs.
While the creation of an SNT can be complex, the basic components are as follows:
Selecting a capable trustee is critical. They will manage the trust assets and make disbursements. The trustee should be familiar with the beneficiary’s needs and also understand the rules surrounding government benefits.
You can fund an SNT with various assets such as cash, real estate, or investments. Depending on your situation, the trust can be either revocable or irrevocable.
There are different types of SNTs, including first-party trusts funded with the beneficiary’s assets and third-party trusts funded with assets from someone other than the beneficiary.
Drawing up the trust document should only be done by a qualified North Carolina special needs trust attorney, as state laws can have unique provisions affecting SNTs.
If you’re looking to create a special needs trust to protect your loved one after your passing, here are the key takeaways you need:
Securing the future of a loved one with special needs requires diligent planning and legal expertise. At Wilson Ratledge, we are committed to offering you the best legal guidance tailored to your unique needs. Contact us today to schedule a consultation and discuss how a Special Needs Trust can be a critical part of your estate plan.
By wrlaw
Navigating the intricate web of tax laws and regulations can be daunting, especially when it comes to payroll taxes. Over the years, we’ve seen many businesses and individuals (“responsible persons”) run into payroll tax issues, sometimes inadvertently. It is important to understand that a portion of the required withholdings is your employees’ money, and you are being entrusted to submit those funds to the Internal Revenue Service (IRS) and the North Carolina Department of Revenue (NCDOR) on their behalf. Failure to remit your employees’ funds as required will result in trust fund liability and significant penalties and interest not just on your business, but on the individuals responsible for ensuring employee funds are properly remitted.
Here are some key tips to help you and your North Carolina business remain compliant and avoid payroll tax problems.
Misclassifying workers can lead to significant tax penalties. It’s crucial to determine if individuals working for you are employees or independent contractors. Remember, independent contractors are not subject to payroll tax withholdings, but misclassifying an employee as a contractor can result in back taxes and penalties. IRS and NCDOR may not respect your classification if the duties and work arrangements of your so-called independent contractor resemble those of an employee. You can find more information on IRS’s view here.
Before anything else, familiarize yourself with both federal and state payroll tax requirements. Employers are generally responsible for withholding federal and state income tax, Social Security and Medicare (FICA), and federal and state unemployment insurance taxes (FUTA) from employee paychecks. Here are some helpful links: Employment Tax Publications & Withholding Tax Frequently Asked Questions
These forms are crucial in determining the proper withholdings for your employees. As a result of the Tax Cuts and Jobs Act, if your employee is married, your employee and his or her spouse should coordinate their completion of these forms for their respective employers, even if the spouse previously completed a W-4, the spouse should update their form based on the new employment status of your employee.
Penalties can quickly accumulate for late payments or filings. Set reminders for all tax deadlines, including monthly, quarterly, or annual filings and deposits. For North Carolina state withholdings, consult the NC-5 series of forms and their respective deadlines on the North Carolina Department of Revenue’s website.
Keep detailed records of all wages paid, taxes withheld, and any tax payments made. Not only is this a good business practice, but it will also be invaluable if you’re ever audited. Retain these records for at least four years, as recommended by the North Carolina Department of Revenue.
Tax laws and regulations can evolve. Consider attending workshops, webinars, or conferences on payroll taxes, or ask your tax professional to keep you up to date as changes are made. Joining local business associations can also provide networking opportunities and access to shared resources.
Modern payroll software can help automate tax calculations and withholdings, reducing the risk of errors. When selecting software, ensure it is updated regularly to reflect any tax rate changes. If you’re not comfortable handling payroll internally, consider outsourcing to a reputable payroll service. Your CPA or an experienced bookkeeper can be a valuable resource in this and many other areas of your business, allowing you to focus on doing what you love.
If you have fallen out of compliance with your payroll taxes, the team at Wilson Ratledge welcomes the opportunity to work with you, your CPA, and internal team to get you and your business back on the right track. Contact us today for a consultation regarding your payroll tax compliance or audit issues.
By wrlaw
Artificial Intelligence (AI) tools like ChatGPT have been growing in prominence in the legal industry. While these tools have proven valuable in various ways, a recent incident in the federal district court for the Southern District of New York serves as a clear warning of the risks and challenges of relying solely on AI for legal research.
In recent years, the use of AI and machine learning tools, like ChatGPT, has become more prevalent in the legal profession. These technologies have enabled lawyers and legal professionals to automate repetitive tasks, perform document analysis, and provide general legal information.
In the case of Mata v. Avianca, Inc.,(Case No. 22-cv-1461 (S.D.N.Y.)), a situation arose where ChatGPT, the AI program used for legal research by the plaintiff’s lawyers, provided citations to nonexistent court decisions. This issue led to an inquiry by the court, revealing a number of fabricated decisions and incorrect citations.
The incident demonstrates several crucial points:
In addition, several other considerations cause challenges using AI tools in the legal field…
The incident in the Mata v. Avianca case underscores the importance of exercising caution and understanding the limitations of AI in the legal field. ChatGPT and similar AI tools are not yet reliable for complex legal research, whether in litigation, transactional work, or other legal contexts.
Lawyers should heed the warning from this case and utilize AI tools as supplementary resources only, ensuring proper human oversight and validation.
While AI, including ChatGPT, has significant potential to revolutionize legal practice, this case serves as a sobering reminder that the technology is still evolving. Ensuring ethical compliance, accuracy, and reliability in legal practice must remain paramount, and the role of human expertise and judgment should not be underestimated.
By wrlaw
When relocating to North Carolina, it’s important to take into consideration the various legal changes that may impact your existing estate plan. This is essential to ensure that your assets and beneficiaries are taken care of according to your wishes.
Although each situation is different and you should speak with one of our North Carolina estate planning attorneys to make sure you are covered, this article will cover some of the most common differences we see in estate planning between other states and here in North Carolina.
Analyze your current estate plan and identify potential conflicts with North Carolina law. Look at all relevant documents, including wills, trusts, powers of attorney, and healthcare directives.
Finding a local team in Raleigh to guide you through the estate plan changes when moving to North Carolina is crucial. The estate planning team at Wilson Ratledge understands the nuances of North Carolina law and can help you make the necessary adjustments.
Make the necessary changes to your will and trusts, ensuring they align with North Carolina law. This may include updating witnesses, notarization, or other specific requirements.
Ensure that your powers of attorney and healthcare directives comply with North Carolina’s specific requirements. Adjusting these documents can be vital in a medical emergency.
State laws can affect how beneficiary designations are handled. Review and update these designations as needed to ensure they are in line with your wishes and North Carolina laws.
Making the necessary estate plan changes when moving to North Carolina can seem daunting, but with proper guidance, the process can be smooth and straightforward. By understanding the legal landscape in North Carolina and working closely with the team at Wilson Ratledge you can rest assured that your assets and loved ones will be cared for according to your desires.
For personalized assistance with your move to North Carolina and the accompanying estate plan changes, reach out to the skilled estate planning team at Wilson Ratledge. We are here to help you navigate these changes – contact us today for peace of mind with your estate planning needs.
By wrlaw
As one of Raleigh’s leading commercial bankruptcy litigation firms with decades of experience navigating the challenging terrain of financial insolvency, we’ve witnessed firsthand the impact of Chapter 11 bankruptcy on businesses and their subsequent journey towards rebuilding their credit.
Bankruptcy can be a profound setback, but it’s important to remember that it’s also an opportunity for a fresh start. This article provides practical, achievable strategies for businesses that are working to reestablish their financial standing.
While the road to credit recovery may seem daunting, a proactive and disciplined approach can significantly aid your business in regaining its financial footing and improving its credit profile post-bankruptcy.
Here are four solid strategies for a business to rebuild its credit after filing for bankruptcy:
Rebuilding business credit is not a quick process, and significant improvements will take time. Establishing and maintaining good financial practices is paramount to ensuring long-term creditworthiness.
In the complex world of commercial bankruptcy, it’s crucial to have a knowledgeable and dedicated attorney by your side. If you’re in North Carolina and facing the challenges of bankruptcy, or need assistance in rebuilding your business credit post-bankruptcy, Wilson Ratledge can help.
Reach out today for a consultation and let our experienced Commercial Bankruptcy Litigation Attorneys guide you through this process, providing the expert advice and support your business needs to navigate its financial future successfully. Remember, taking the right step today can put your business on a stronger footing for tomorrow. Act now to start your journey toward financial recovery.