Tuesday, 11 May 2021

The Top Five Regulatory Changes for Businesses

The New Year of 2O11 brings changes that could affect business owners. It is important to remain informed about decisions made by our government that could impact you. Here are the top five regulatory changes for 2011.

Health Care Reform

Although there is much debate about the legitimacy of any health care reform, there will be some impact in the form of tax credits. If you are a small business who purchased heath care insurance that existed on March 23, 2010 then you are grandfathered in and do not need to add on the provisions provided for in the reform bill. However, to remain grandfathered in you cannot make any significant changes to the current plan. The appeal voted for on January 19, 2011 does not affect the bill going forward. Only the house voted it down, it still has not gone before the Senate and the president is expected to veto any changes.

Tax Rule Changes Capital Investments

Small business owners can expect changes in the way they do business in regards to taxes. First, businesses now get to expense 100 percent of their capital investments. This will be a huge incentive for owners to purchase that much needed equipment and write off the total instead of scheduled depreciation.

Flexible Spending Accounts

Flexible Spending Accounts or FSA prior to the regulatory changes allowed its owners to purchase over-the-counter medicine and other drugs, except insulin and receive reimbursement from their FSA health account. As of 2011, this no longer applies unless it is prescription written out by a medical doctor.

Unemployment Insurance

Not many would have predicted such a long and hard unemployment for many. This has now raised concerns in many states that the funds for unemployment are too low to be maintained much longer. Some states like Massachusetts, has put a freeze on increasing the cost to business owners, which could have been as high as $238 dollars per worker for unemployment insurance. Other states like North Carolina, is already receiving angry feedback from companies who are getting sticker shock. Depending on which state your company is located be prepared for a possible bill arriving in the mail.

Wage Transparency

Although many middle to upper management level workers experience wage transparency, the US Department of Labor has found this to be less true for minimum wage earners. These minimum wage earners make up a large percentage who work for small to mid size companies. Penalties are expected to increase for those companies that are found to be underpaying its employees and not offering clear wage deductions.

The key to surviving in a small business is through adaptation and knowledge. It is important that each year, the company be aware of not only current changes, but future ones that could impact the bottom line or present legal issues. 2011 proves to be a year of interesting challenges for business owners once again. The regulatory changes can affect the business of the firm so proper knowledge should be gathered from buybettersocial.com about Instagram followers. The charges to get the information will be under the funds available with the person.