Small business in America has been struggling for decades. It has never been an easy road. There are so many unique challenges that face a small business owner on a daily basis. If that wasn’t enough to keep an owner up at night, then let’s think about taxes, regulation and lawsuits. Adding those factors together, it makes you wonder why you ever started a small business.
The Challenges for Small Business
Well, the good news is there are millions of Americans who want to take on those challenges and build a business. No matter how painful it may be, they have a product, an idea or a solution that people just can’t live without. They jump into the small business arena with energy, gusto and a tough-minded spirit. It is the American way!
Here are some hot button issues that small businesses will be directly challenged by in 2017:
Affordable Care Act – The Affordable Care Act’s (ACA) future has been one of the most talked about topics since the election. We know that no matter what the solution, the existing regulations will not change quickly. Compliance is required until changes are enacted.
Overtime pay – Employers were set to start paying certain employees overtime under a federal rule that updated the Fair Labor Standards Act (FLSA), but a federal judge blocked it, postponing it indefinitely. The rule would require businesses to pay overtime for any employees making less than $47,476. The legal ruling is in place until it is addressed by the new administration.
Minimum wage – In 2017, 20 states will increase their minimum wage. This year, small business owners should be aware of any minimum wage updates in their states and cities.
Tax reform – For businesses both small and large, the new administration proposes a decrease in the business tax rate from 35 percent to 15 percent, as well as eliminating most tax expenditures. Tax reform could also include changes to employer-sponsored benefits like retirement and health insurance contributions. Small businesses should ensure they are complying with all existing tax laws.
These are just a few crucial factors that are facing small business for 2017.