Advocacy

The 2022 Legislative Session got underway today, Monday, January 10. This year is shaping up to be another mostly virtual session given the ongoing COVID-19 pandemic. The House of Representatives has moved to an entirely virtual setup to start, while the Senate is currently planning to vote in person but will hold committee meetings virtually.

In preparation for the upcoming Legislative Session the WSCPA has worked with legislators to propose HB 1648 and SB 5519. These bills would set a timeline for phasing out certificate status while also creating a new CPA–Inactive license status.

Governor Inslee announced a delay in collections of the payroll tax until April 2022. This gives the legislature time during their upcoming session to make tweaks and address some concerns that have been raised over the last few months.

The Washington State Board of Accountancy (WBOA) has been looking to make a few rule changes this year to streamline some processes for active CPAs and prospective CPA candidates.

While the profession continues to adapt to the changing business and social climate, the WSCPA Advocacy Team has spent the summer and fall working hard monitoring and participating in various rulemaking at different agencies which will impact the profession in the years to come.

The WSCPA Advocacy Team has been hard at work in 2021 so far. Things moved slower and quicker at the same time. Fewer bills were introduced, but they sometimes moved forward in record pace.

In early June King County Judge Mary Roberts issued her ruling and sided with the City of Seattle and against the Seattle Metropolitan Chamber of Commerce in a lawsuit trying to overturn the JumpStart payroll tax. This tax was passed in July 2020, and applies to every business in Seattle with a payroll above $7 million and at least one employee in Seattle with an annual compensation of $150,000 or more.

While the legislative session has ended, the Advocacy team’s work will continue. The team works throughout the year on many issues locally and on a national level. We will be continuing to work on advocating for the profession throughout the summer and fall.

On Sunday, the Legislative Session in Olympia ended as legislators wrapped up their work for the year. This was a 105-day session held for the first time entirely online due to the continued COVID-19 restrictions. “This session was the busiest and one of the toughest we at the WSCPA and our Government Affairs Committee have ever seen,” said Kimberly Scott, WSCPA President & CEO.

The AICPA is asking Members of Congress to call on the IRS to immediately give tax payment and filing relief to all taxpayers. The WSCPA is asking you to join in this effort.

2020 was certainly full of surprises and unprecedented challenges. The WSCPA advocacy team and our member volunteers, have been advocating for CPAs every week (not an exaggeration) during a year of unparalleled legislative and regulatory flux. Now that the legislative session is underway, here are our advocacy priorities for 2021.

The 2021 legislative session is off to a fast start. A number of important bills that could potentially affect the CPA profession, and your clients, have come up in just the first two weeks. The Democratic majority in the House of Representatives has published a list of four topics that bills will need to address in order for them to be considered in that chamber. The list includes racial equity, responses to the COVID-19 pandemic, economic recovery, and the global climate crisis. We have already seen a number of proposals from Governor Inslee and others that would address police reform, regressive taxation, and various aspects of the COVID-19 pandemic.

Today, the American Institute of CPAs (AICPA) and a coalition of more than 560 organizations representing millions of employers and American workers sent Congressional leaders a letter urging passage of legislation making it clear that expenses related to a forgiven Paycheck Protection Program (PPP) loan are tax deductible. The letter states that without legislation, there is “…the specter or a surprise tax increase of up to 37 percent on small businesses when they file their taxes for 2020.”

While we wait for the certification of the election at both the local and national level, here are a few key takeaways from what we here at the WSCPA are watching.

President Trump's recent memorandum regarding payroll tax deferral has spurred the need for additional guidance and clarification from Treasury and IRS. Read more about the issues and concerns in AICPA's press release.

Community is a central part of our lives during normal times. In a year filled with uncertainty and constant wondering about what will happen next, it is more important than ever to connect and lean on our communities. WSCPA members have access to a network of thousands of peers; however, limited in-person meetings and events requires creativity in how we connect with each other.

You may contribute to the CPAPAC as part of checking off your to-do list for your annual membership renewal. Relationships with elected officials, adding your voice to the CPA community and presence in Olympia are some of the benefits of investing in the CPAPAC.

Congressional leaders are in deep discussion about a path forward for the next COVID-19 relief legislative package.The AICPA and WSCPA, on behalf of the accounting profession, continues to encourage Congress to not delay in finding bipartisan consensus on additional relief and recovery legislation, and to include provisions that reflect the true and immediate need of small businesses.

The U.S. Supreme Court is considering a case that challenges the constitutionality of the individual mandate under The Patient Protection and Affordable Care Act (ACA). Accordingly, any ACA-related income taxes paid in prior years, including the individual shared responsibility penalty, may be refundable if a claim for refund is filed in a timely manner. You may be wondering if your clients should file protective claims for any years about to expire. This article helps answers those questions and offers resources to determine the appropriate course of action.

Wintery weather could not stop members from traveling to Olympia on January 15 for WSCPA’s annual Hill Day. Members spent the day together going office to office to meet with their representatives and discuss professional issues.