What to Expect in 2021 if you are a Business Owner
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What to Expect in 2021 if you are a Business Owner

What to Expect in 2021 if you are a Business Owner

02/03/2021 | Read Time: 5 Minutes

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Likely you have heard of regulatory changes that could/will affect businesses this year as the Federal Government administration changes over. An unprecedented number of executive orders have already been signed by President Biden and likely we will see more. This is a list of the top regulatory issues on the horizon according to Paychex.

NEW COVID-19 STIMULUS:

The Trump administration signed into law the Consolidated Appropriations Act of 2021 which provides most notably the PPP 2 program, revised rules on the deductibility of expenses paid for by PPP loans and extensions to some tax credits as well as Family Leave extensions.

FAMILY LEAVE, SICK LEAVE, AND COVID-19 LEAVE:

Paid sick leave, leave to care for sick family members and leave to care for children effected by closed daycares or schools were scheduled to expire 12/30/2020 but relief packages enacted late in 2020 extended them until March 2021. The refundable federal tax credit to offset the cost of these benefits to some employers was extended too.

TAXES:

Taxes are always on a business owner’s minds. A potential for increased IRS enforcement is expected under the Biden administration as well as action on tax policy according to the new presidency platform. The need to raise more money through taxes to balance budgets will way heavy on current state and local governments as well as the Federal government. Tax planning in 2021 is critical.

WORKPLACE SAFETY:

With workplace safety already regulated by OSHA and current COVID-19 violations falling under the umbrella of OSHA’s General Duty Clause, expect more defined standards to be Nationalized for consistency and a more defined permanent set of rules regarding infectious disease to be approved.

FUTURE OF WORK:

Telework and the use of remote workers has proven to be executable but occasionally challenging. Work from home policies will be the normal at businesses that can provide this option. Wage and hour issues for non-exempt employees and workers’ compensation obligations will become more complicated likely.

HEALTHCARE REFORM:

With President Biden being a part of the prior administration that brought sweeping reform to the healthcare and health insurance industries, expect more work to provide more affordable care options. Likely the current administration will reverse previous guidance or regulations strengthening the compliance of these laws. States may be pressured to provide state-level health insurance requirement and mandates.

WORKER CLASSIFICATION:

The DOL is expected to finalize a proposal regarding worker classification under the Fair Labor Standards Act (FLSA). This rule as proposed would make it easier for employers to classify workers as independent contractors and thus exempt from certain benefits available. Unfortunately, other agencies like the IRS and NLRB along with some State and Local governments will continue to introduce counter proposals.

RETIREMENT:

Pooled Employer Plans (PEP) came from a provision of the SECURE Act 2019 allowing unrelated businesses to pool together for retirement plans. PEP s would provide the possibility of more employer-based retirement plans as the fiduciary burdens are reduced in the administration responsibilities. Recent COVID-19 relief bills provide partial retirement plan termination relief as well as Non-COVID Federal Disaster Tax Relief. Possible legislation under SECURE 2.0 if passed, may require auto-enrollment retirement plans for businesses with 10 or more employees, and increase the Required Minimum Distribution (RMD) and possibly student loan repayment. On the other side, SAVERS Act includes raising the retirement plan contributions limits by 300 percent.

Huberty is a CPA based business advisory firm providing, Accounting, Analysis, Strategy and Planning services to businesses that are looking for better solutions. Reach out to one of our offices in Fond du Lac, Plymouth, Sheboygan, Ripon or Minocqua Wisconsin.