The year 2016 brings forth a fresh set of commandments for small businesses. It is essential to look out for these new changes, which when not implemented can prove to go against the business.
A run down on the 2016 issues that need to be handled without delay which when done can result in huge turn-over for small businesses-
- Extra working hour rules: An increase in the overtime pay is the highlight this year. As soon as the details are out an urgent action is expected from the employers.
- Staff Salary: Around the globe, new laws are being formulated for a raise in the minimum salary of employees, stressing on equal wages and paid sick leaves. These laws have already taken an effect since the 1st of January 2016 in New York City based fast food employees. Equal pay for men and women is being implemented and 5 paid sick leaves are to be allotted by owners having a minimum of 10 staff members.
- Confidentiality Issues: Laws of Security and Privacy has gone up a notch this year. The data-security measures that have been functioning in various businesses up till now will require a boost.
- Staff Arrangement: Labor Department has extended the correct employee definition to eliminate the employers from appointing staff members as autonomous contractors in order to save overtime costs.
- Online Business sales tax: Previously, collections of taxes from online business were restricted to those sellers who had satisfactory physical state presence. But, 2016 will permit states to collect sales tax from online businesses irrespective of where the business is physically located.
- Filing of W-2 forms: Earlier, filing of W-2 forms had time till February or March end which has been cut short this year. Presently, employers have to file both W-2 forms and annual reconciliations by 31st January every year.
- Retirement Policy: Business owners should be prepared for the fresh regulations that will take a toll on the existing retirement plans. Labor Department will be releasing them by summer 2016. The new policies will impinge on the accessibility of retirement plan advisors. There are also chances that the laws will influence additional inquiry of a company’s selection and affect the ongoing administration of its retirement service contributors.
- Workers’ reimbursement: Business should watch out for the ongoing discussion in Congress which has been stating that certain states have been falling short of the necessary fulfillment of processes and insurances of worker’s reimbursement. This may lead for the federal government to step in.
- Credit card scam: October 2015 saw certain latest credit card safety measures. The measures taken are directed to heighten the standard of the cards that can operate with computer chips. The amendment is supposed to transfer the accountability for credit and debit card scam from issuing banks to traders who haven’t established new EMV practices and workstations. In agreement to the new rules, businesses should change their credit card processor to safeguard themselves or their businesses from being held responsible for any sort of fraud.