Recently, five key things happened that could affect your small business.
Here they are:
1. The American Rescue Plan was signed into law
The ARP was signed into law by President Biden on March 11, 2021. Naturally, the stimulus checks and the unemployment benefits garnered the most attention. However, the law also includes various provisions for small businesses!
Small businesses have taken a hit due to COVID-19. Thankfully, this law now provides options for several grants and loans that you can now apply for! About $50 billion in funding has been allocated to assisting small businesses. This is in addition to the $600 billion previously allocated.
Make sure you apply for a grant or loan if applicable!
2. Amazon workers are voting whether to unionize or not
Amazon workers at a warehouse in Alabama could decide the future of a $1.5 trillion tech giant and its employees worldwide. A vote among the workers is set to decide whether to unionize or not. Although it seems Amazon workers have voted against union at Alabama warehouse, this could have an impact on many businesses across the US, no matter what the size of the business is. For now, it’s worth keeping an eye on in terms of your own business.
3. Corporate income taxes might be changing
We’ve written about President Biden’s tax plans before. Essentially, the Biden administration and also some members of Congress have suggested changes to the corporate income tax that would repeal changes made by the Tax Cuts and Jobs Act (TCJA) in 2017. For now, these have not gone into effect, but as a small business, it is worth it to keep an eye on the latest developments. This change could affect your tax rate in the future.
4. The travel industry is recovering
The travel industry was hard hit by the pandemic. Now, with reports that 25% of Americans are fully vaccinated, there are signs that the industry is making a comeback.
This will affect your business, probably positively, if your business is in any shape or form affected by travel and tourism, this is a positive sign that things could be returning to normal.
5. The Employee Retention Credit (ERC) and the Paycheck Protection Program (PPP) can both be used now
The Taxpayer Certainty and Disaster Tax Relief Act and the American Rescue Plan extended the ERC through to the end of the year and also increased the refundable and advanceable credit to $7,000 per employee. This is valid for two quarters each or up to $14,000. In addition, this legislation also resolved an issue which made it impossible for employers to take advantage of both the ERC and the PPP in 2021.
As a small business, you are now allowed to use both, with one limitation that funds from both these programs cannot be used on the same payroll period.
Do you have a small business? If you do, we hope you know we help small businesses with their taxes too! Check out our Corporate Tax Preparation page and book an appointment if you haven’t filed your taxes yet!
Thinking of launching a home-based business? It’s one of the most powerful things you can do to slash your tax bill by as much as $5,000! Write off over 150 business-related expenses, just like the Fortune 500 companies do. Let’s us show you how! Book a free consultation with us today to see how launching a home-based business can have a MASSIVE impact on your taxes and check out our Home-Based Business Consulting service page for more info!