September Small Business News Updates

September Small Business News Updates

Small Business News Updates

Small Business News Updates

If you are a small business owner, it is in your best interest to stay up-to-date with changes in both local and federal regulation as well as market trends.

Here are some recent news items to help make sure you are ahead of the game:

The Senate passed a $1.2T Infrastructure package & Reconciliation legislation

The INVEST in America act is the largest upgrade to the country’s roads, bridges, and broadband in decades. The House voted to approve the Senate -passed fiscal year 2022 budget resolution that provides for instructions for this spending that would be offset in part by corporate and individual tax increases.

People are Quitting Their Jobs at a Higher Rate

Approximately two million more people than expected have ‘retired’ over the last year and a half. The economy is changing, and business owners should be aware of how the hiring pool is changing.

PPP Forgiveness – New Portal for Businesses

The government developed a new portal through which small businesses that borrowed up to $150,000 can apply to have their loans forgiven. The portal can be accessed through SBA.GOV.

Prop. 22 /AB5 UPDATE

AB5, effective January 2000, aims at recognizing independent contractors as employees, codified into state law by a previous California Supreme Court decision setting forth an “ABC” test to determine if a worker is an employee or an independent contractor. That test says a worker is an employee, unless it can be certified that:

  • A: the worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and;
  • B:the worker performs work that is outside the usual course of the hiring entity’s business; and
  • C: the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

The California Trucking Association challenged AB5, and appears to be headed to the Supreme Court.

Prop22, as approved by voters in November 2020, still classifies some workers, notably app-based workers, as independent contractors. However, an Alameda superior court has struck down Proposition 22 as unconstitutional because it:

  • Limited the Legislature’s ability to enact future legislation concerning the app-based drivers’ workers’ compensation in violation of the California Constitution
  • Violated the single subject rule because it dealt with both the drivers’ worker classification and the Legislature’s ability to legislate concerning the workers’ collective bargaining rights.

Uber and Lyft have stated they will appeal the ruling. The lower court’s ruling will likely be stayed throughout the entire appeal process.

STEP Grant program for website globalization

The STEP grant program has helped thousands of small businesses obtain grants and find customers in the international marketplace since 2011. Through awards to U.S. states and territories, STEP helps small businesses overcome obstacles to exporting by providing grants to cover costs associated with entering and expanding into international markets.

STEP financial support helps U.S. small businesses:

  • Learn to export
  • Participate in foreign trade missions
  • Design international marketing products and campaigns
  • Support website globalization and e-commerce capabilities
  • Pay for subscriptions to services provided by the U.S. Department of Commerce and other federal agencies
  • Participate in export trade show exhibits and training workshops.

Contact us for ideas on how your business may qualify for these government grants.

For more ways to save on your businesses year-end tax bill, check out our recent blog post:
7 Things You Should Do Before Year-End To Reduce Your 2021 Tax Bill

Steve Moskowitz and Moskowitz LLP appreciate the sweat and tears that go into building a business, and we want you to benefit from tax laws. These recent updates effect small businesses and your customers, clients, and staff are counting on you to claim what’s yours.

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