As an entrepreneur you should be well versed in business legislation and how it can quickly change. Here are some recent developments you need to know about.
Each new year comes with new policies and changes to business legislation.
Trying to keep up with the development can sometimes feel like tracking waves on the sea. Business legislation is in a continuous state of change, compliance can be like aiming at moving targets if you don’t look ahead and prepare.
Staying informed about current and recent developments that can affect your business is crucial for effective entrepreneurship. It can make the difference between finding a competitive edge or getting into legal trouble.
This simple article will tell you what to look out for, so you can continue working toward your new goals for 2018 without problems.
1. New Tax Policies
A new reform to federal tax policy passed with narrow margins in both chambers of Congress. This reform will affect businesses of all sizes to a significant degree.
First of all, the law gives U.S tax code an overhaul. The second effect is that a lot of states are likely to alter their regulations in order to better comply with federal policy.
There’s been a lot of speculation about what advantages and disadvantages this reform will bring. But the tax code isn’t a simple matter to understand at this point. You will only see the full effects once this business legislation is implemented for some time.
As an entrepreneur, it’s in your best interest to keep an eye out and stay up to date on these matters. When the policy comes into effect you should monitor your developments and look for new opportunities and strategies.
It’s a good idea to consult with a professional.
The “Tax Cut & Jobs Act” that passed in 2017 is a big focal point for business and economy experts right now. Accountants and financial consultants are hard at work crunching numbers and figuring out potential effects and how to deal with them.
There’s still time to get on top of and figure out this game-changing new law before it comes into full effect. There are great opportunities for small business owners to discover.
A big change like this isn’t something you should shrug at. Seize the opportunity to make great gains from this transition.
2. The Affordable Care Act
Many efforts to reform the health care system were shot down last year. But an updated Affordable Care Act is still relevant in Congress.
This new tax policy proposal has the potential to reduce the ACA’s individual mandate penalty. Even all the way down to zero dollars. This could repeal the provision via tax policy instead of by congressional action.
The reporting provisions are still likely to remain the same. The IRS will require you to file and report any individuals covered by your plan. Otherwise, you’ll face penalties.
As an entrepreneur, you should be both prepared for the future and able to comply with current requirements.
3. Portable Benefits Legislation
With each new year, the gig economy keeps growing. More than 30% of Americans work this way. Freelance work and short-term contract keep grabbing a bigger share of the labor market.
Temporary workers, independent contracts, and freelancers don’t have the benefits of the typical workplace.
As this path of work becomes more popular, the support for portable benefits grows. Because such benefits are carried from gig to gig, covering the individual regardless of the work site.
This is a fairly new development in business legislation. It’s still in the process of definition and trial. They have, however, prepared the bills. And they’ve introduced them in several states, as well as on Capitol Hill.
Virginia is one example. Senator Mark Warner introduced legislation for portable benefits in May of 2017. The Senate of New York is moving toward implementation of benefits for workers in the gig economy. Portable benefits are a strong candidate.
A big part of the American population consists of independent contractors and gig workers. And the percentage is growing at a fast pace.
This means a lot of Americans lose all security the traditional workplace provides. 401(k)s, health insurance, training, and development. Many workers have had to sacrifice these benefits.
These levels of uncared-for workers make an unsustainable situation. This problem has the potential to sink U.S productivity rates, skill acumen, and health levels.
The potential impact is now too serious to ignore. It’s very likely that 2018 is the year when the politicians take independent workers into consideration.
4. Minimum Wage Policies & Paid Sick Leave
More and more people have given their support to measures for paid sick leave and a higher minimum wage.
Bills pertaining to paid leave were introduced in Congress. However, any surfacing bills of this nature will have a hard time in each Republican-led chamber.
The most likely scenario is that states and localities will implement this business legislation little by little. And organizations will then adopt and comply with the new rules in a patchwork fashion.
As an entrepreneur, you can lure more qualified workers in with paid leave benefits. The biggest asset of a business of any size is an incentivized workforce. A good organization ensures that employees are cared for if they’re in need.
It’s important to strengthen your brand’s image. Having satisfied workers helps a lot with that.
However, policies for mandatory paid leave could bring some new challenges. You may end up with a lot more planning and budgeting to do.
No matter which way this business legislation goes, you must learn to navigate the new dynamics of the business.
5. New GDPR Policies in the EU
GDPR is short for General Data Protection Regulations. This new cybersecurity legislation will change a number of things.
If you think that a new policy in Europe won’t affect you, you may need to reconsider. First of all, ripples on the global market now reach everywhere.
It’s also an indicator of where things are going. It won’t be long before these regulations are proposed in America. More data security for both businesses and individuals won’t have a hard time gaining traction.
Stricter data policy implementation is a matter of time. Security breaches are far too common. As an entrepreneur, you may want to get ahead and prepare. See if you can tighten up your security protocols for 2018.
Does your business register customers? Their accounts, email addresses, passwords and other information may not be safe.
It isn’t clear yet how the U.S. government will respond to the GDPR, but it’s in your best interest to be prepared either way.
Those are the 5 important new business legislation changes you need to know for 2018.
If you’re new to the entrepreneurship game or you need to learn more to progress, I can offer the assistance you need.