SMEs in the U.S. are eyeing incoming regulations likely to impact their businesses, and small business payroll and HR firm Paychex has identified the legislation about which SMEs are most concerned.
Tax reform takes the top spot of regulations SMEs are watching most closely, Paychex said in its release of the survey results Wednesday (Dec. 21). According to analysts, a Republican-controlled Congress means tax reform may come early in the Trump administration, and plans for such action include cuts to business tax rates. Other plans for tax reform could lead to SME expansion and creation, Paychex noted, though businesses may be concerned that tax breaks may have to disappear in order to fund the reform.
The Affordable Care Act is also top-of-mind for SMEs as the Trump administration targets a repeal and replacement of existing legislation. For small business owners, that means changes in employee benefits, so Paychex said that many aspects of the existing ACA could be here to stay.
Wages and hour compliance, immigration reform, retirement rules and employment regulations have also landed on Paychex’s list. Though, there are several payments-related issues that SMEs are watching for the year ahead.
Faster payments initiatives and payments security efforts are challenging SMEs to stay ahead of innovation and new rules like EMV compliance. While challenging, the efforts are ultimately beneficial to SMEs that are likely to gain from Same Day ACH and more enhanced card security measures, according to the report. Regulation changes in paycards are also impacting SMEs and the way they pay their employees, with new rules in Pennsylvania and New York ready to take effect in 2017 that aim to protect employees and prevent scrupulous payroll card fees.
“As the Trump administration begins to implement its legislative agenda, it appears that 2017 will bring many significant changes across the regulatory landscape,” Paychex CEO Martin Mucci reflected in a statement. “Paychex will keep a close eye on regulations and legislation to help business owners understand what they mean and what changes may be required.”