Payroll, HR, and benefits outsourcing company Paychex, Inc., has compiled a list of the top 13 regulatory changes to affect American small- and medium-sized businesses in 2013.
“As we approach the New Year, Paychex wants to help small business owners understand the major regulatory issues that may potentially affect their business, either legislatively or through simple rule modifications,” Martin Mucci, Paychex president and CEO, said. “By identifying these top regulatory issues early on, business owners will not only be more informed, but prepared for 2013.”
The list includes:
• The “fiscal cliff” will affect virtually every business should a budget agreement fail to materialize by January 1. The cliff would see federal spending cuts, an expiration of the current payroll tax holiday, and an ending to temporary lower federal income tax rates.
• The move to reduce the $450 billion tax gap between taxes collected by the IRS and actual tax owed will focus heavily on wealthy citizens and small businesses due to perceived heavy non-compliance by these entities.
• Health care reform will require businesses that don’t spend the prescribed percentage of premium dollars collected on medical care to send rebates to policy holders.
• Worker misclassification will meet heavy enforcement efforts as the IRS and DOL attempt to reduce the misclassification of workers as independent contractors.
• Tax reform could mean cut backs on tax benefits for high earners, especially in areas, such as employer contributions to health care premiums, retirement plan contributions, and mortgage interest deductions.
• Retirement savings will experience increased contribution limits in 2013 and a potential mandate to automatically enroll employees into a retirement plan.
• The NLRB is expected to be more active in its support of unions and corporate policies in topics such as social media, employment-at-will, and harassment investigation procedures.
• The DOL is expected to release further regulations on expanded military family leave under FMLA, restricting minimum wage and overtime exemptions.
• Immigration reform will see increased enforcement of Form I-9 audits.
• The Consumer Financial Protection Bureau will play a prominent role in bank, credit union, mortgage companies, and debt collector oversight.
• Anti-cyber fraud legislation is expected to develop in order to protect small businesses and national infrastructure from cyber criminals.
• Business development of business recovery and continuity programs ensuring uninterrupted services throughout a time of extreme emergency such as a major storm.
• FDIC will discontinue unlimited federal insurance without Congressional extension, potentially leading to many small businesses shifting operating funds to larger banks or multiple financial institutions.