In the midst of the ongoing pandemic, our economy experienced rapid — and sometimes chaotic — evolution. As we turn our full attention to 2022, here are some past lessons that can help create opportunities for the future.

1. New legislation

The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021. The $1.9 trillion package expanded existing COVID-19 relief programs and provided additional funding to state and local governments. As ARPA relief funding continues to be used today, companies and organizations are navigating compliance requirements such as single audits and other forms of engagement.

If you received ARPA funding, consider an ARPA application and management platform.

The Infrastructure Investment and Jobs Act was signed into law on Nov. 15, 2021. The $1.2 trillion package renewed numerous infrastructure and transportation programs and includes $550 billion of new federal spending over the next five years. This package impacts all industries, from revitalizing and improving national supply chain infrastructure to expanding cybersecurity and broadband services across the United States. As related funding begins to find its way to companies and organizations like yours, keep alert for any tax impact or compliance requirements.

2. Compliance with COVID-19 relief funds

Beginning in March 2020, trillions of dollars have been pushed out from the federal government under various COVID-19 relief packages. Stimulus programs and funding streams were made available to businesses, nonprofits, health care providers, educational organizations, state and local governments, and more.

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Many of these funds have ongoing compliance requirements, which are complex and may be unfamiliar territory for those receiving this type of assistance for the first time. Businesses may want to consider assistance from a professional services firm to help navigate compliance requirements.

3. Employee Retention Credit (ERC)

The ERC is a refundable payroll tax credit initially created through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in 2020. Its importance increased throughout 2021.

The ERC has been a valuable opportunity for employers impacted by COVID-19. Eligible employers — organizations who have either experienced a significant decline in gross receipts or were fully or partially suspended by a government order — have three years to amend payroll tax returns for refunds of up to $7,000 per employee per quarter in each of the first three quarters of 2021 — and up to $5,000 per employee in 2020.

It is wise to assess your eligibility each quarter. Consider seeking help to evaluate your eligibility and then structure the credit with additional COVID-19 relief funding to enhance your potential.

4. Labor market disruption

Employers across the board are vying to attract the best talent in the face of a significant number of retirements, as well as many professionals moving to jobs that can provide better compensation and benefits.

As you navigate these labor market challenges, it’s natural to wrestle with how to fill vacancies. Transforming your internal talent or searching for the right addition can have a lasting impact for years to come. Consider organizational assessments, training, and coaching to help you develop strong leaders at all levels.

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Realities of a hybrid workforce: Here's how to keep your employees productive and connected

As your staffing changes, think about the tax impact it can have on your business in 2022. There are tax opportunities still available that may be beneficial, for example, the Work Opportunity Tax Credit.

5. Operational changes and workforce strategy

Employment challenges are forcing many leaders to rethink their corporate structure and operations to remain efficient while not sacrificing important checks and balances that could increase fraudulent opportunities. They are leveraging automation and technology where feasible in hopes of increasing operational accuracy and timing while removing wasted time and effort on mundane, repetitive back-office support functions.

Getting creative during the labor shortage can come in many forms and will depend on the long-term goals and priorities of your organization.

6. Financial implications of a remote workforce

Due to the pandemic, working remotely has spread throughout the United States. This is likely to continue into the foreseeable future — and perhaps beyond the pandemic years.

Even as offices reopen, employees are requesting the flexibility of permanently working from home. With technology such as cloud-based networks and virtual meetings, employees believe they do not necessarily have to be in the office or same state as their employer to be productive and able to collaborate with colleagues or customers/clients.

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Post pandemic plans: Has COVID-19 rattled your organization? Here's how you can thrive in the future

State tax authorities are aware of the remote work phenomenon and eager to enforce their legacy laws to capture additional revenue for the residents of their state. Become familiar with state taxation terms such as nexus, apportionment, sales-sourcing, and the telecommuter rule.

You may also want to seek professional help to navigate the complexities presented by a virtual office and remote workforce arrangement.

7. Succession planning

Many owners and key business leaders are starting to make life-changing decisions about their organizations. Succession planning has been expedited by the ongoing pandemic and continues to expand. It’s wise to work with advisors who take a goals-oriented approach to succession planning and can provide available options.

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8. Inflation and strategic investment planning

Higher prices, as reflected in recent inflation data, remain a key focus area for business owners, economists, and investors — exacerbated by the combination of an economic recovery and supply chain constraints. High inflation drives even higher inflation expectations, which can become unhinged without a direct policy response.

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For investors, inflation can be thought of as an additional tax that reduces your future purchasing ability. Develop a robust financial plan that can model out your spending and saving patterns as you age to help determine whether you have enough liquidity to achieve your goals.

9. Cybersecurity

Cybercrime continues to remain an industry-agnostic concern, growing rapidly in sophistication and frequency. Companies and organizations are quickly identifying vulnerabilities and improving their IT infrastructure and data security to help mitigate risk or exposure.

More on cybersecurity: Take these steps to protect your organization from a cyber attack

10. Lease accounting changes

The new lease accounting standards ASC 842 and GASB 87 are now effective for private companies and organizations with fiscal years beginning after Dec. 15, 2021, and June 15, 2021, respectively. These standards help increase the transparency around lease relationships and the comparability among all companies and organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about lease relationships.

For more information on creating opportunities in 2022, contact William Moore at william.moore@CLAconnect.com] or 781-610-1224. For more information on CliftonLarsonAllen LLP, visit CLAconnect.com.

This article originally appeared on The Patriot Ledger: Workforce strategy, new legislation and COVID-19 relief funds and more