Payroll & Business Experts Blog

Good news…or just so-so? The National Federation of Independent Business said its small-business optimism index rose 2.6 points to 92.1 in April from 89.5 in March. The 2.6 point gain has been the biggest advance since October 2010.

Last Friday (May 10th) I provided an update on the Senate’s vote in favor of the Marketplace Fairness Act by a count of 69 – 27. Politics aside, this Act, if passed by the House, will certainly add to the challenges that small businesses are facing this year and next, given the significant Affordable Care Act provisions going into effect. It seems as if the pace at which government is adding new legislation has hastened. To make matters worse, the complexity of these new laws have only increased the burden on small businesses both from a cost as well as a compliance perspective.

The Senate overwhelmingly approved, by a vote of 69 to 27, a much-debated Internet sales tax proposal on Monday, May 6, that would give states the power to enforce their sales tax laws on online purchases. This, in turn, would require shoppers to pay sales tax on online purchases from merchants that rake in sales of $1 million or more in states where they do not have physical operations, such as a store or warehouse.

The most recent Wells Fargo/Gallup Small Business Index, a quarterly survey of U.S. small business owners, showed that small business owners were “a little more optimistic” in April compared to the beginning of 2013 even though there still was worry about a sluggish U.S. economy. The survey took place April 1-5.

As of blog press time, the online sales tax legislation had not come up for a vote.
We will continue to monitor this very important issue.

Are you a small company wishing you were bigger? In small business, bigger can mean many things--reliability, enough staff to quickly resolve customer problems...and that you’re not going out of business!

The tax-free days of online shopping may be gone—very soon. If the Marketplace Fairness Act becomes law, millions of Americans who avoid paying sales tax when shopping online will have to start paying it.
Last Monday, the Senate plunged ahead with legislation to allow states to have more authority to collect sales tax on Internet transactions.

The Marketplace Fairness Act (S743) will mandate companies that earn annual online sales of more than $1 million to collect sales tax on those purchases. Currently, a state only can tax on online business if it has a physical location in the state. Brick-and-mortar businesses have cried unfair because they face a tax burden while online businesses enjoy a tremendous “tax free” advantage.

While Social Media is here to stay as today’s real-time immediate communicator, it is coming under attack from a new audience—securities regulators. The Financial Industry Regulatory Authority (Finra), which essentially self regulates Wall Street, emphasizes that financial firms should monitor "red flags" which indicate misuse of a personal account. In fact, a spokesperson for Finra has been quoted as saying the organization has requested approximately ten states to change proposed legislation.

Keeping up with all the health insurance changes under the new healthcare reform legislation, key parts of which take effect in 2014, can be challenging, especially if you are a small business owner. But it’s vitally important to do so, for both your employees and your own profitability. 

In a study conducted by the National Taxpayer Advocate, an independent office within the IRS, the possibility of an audit is higher for a sole proprietorship who receives his or her revenues in cash. This also is more likely if you live in an upper-class suburb, according to the study, because the IRS seeks out those who it thinks will have the income to pay owed taxes.

The National Federation of Independent Business announced last week that small business optimism is faltering after three straight months of increasing. The March NFIB Index of Small Business Optimism quarterly survey dove 1.3 points to 89.5. Of all the elements the index ranks, labor market indicators, inventory investment plans and sales expectations plunged more than the rest.