The U.S. Chamber of Commerce recently shared their 2023 Small Business Update conducted as an interview with Neil Bradley, vice president, chief policy officer and head of strategic advocacy. There were several points made that local businesses may find useful, so we are sharing them here!
2023 showed better than expected growth in the U.S. economy.
Inflation remains a large concern, but we seem to be on the path to slowing inflation.
Monitoring Fed rate changes. Expected to stay level or possibly decrease by 0.25%
Workforce availability is a major continuing trend. Right now, there are 71 job seekers for every 100 jobs across the country. Some areas are better while some are much worse. This trend is not normal and somewhat unprecedented.
- Remaining COVID effects.
- Early Retirements.
- Shift toward single income households.
- Baby Boomers aging out.
Artificial Intelligence is the big topic when evaluating market trends.
- Anticipated to be a great help to make small businesses more competitive in relation to large. business resources largely due to small business agility.
- Likely to go a long way to “saving small business.”
Department of Labor regulation to expand the criteria used to evaluate independent contractors.
- The Current three-point test could be changed to a 7-point test.
- Seems to be an increase in ambiguity.
- S. Chamber is not supportive of the change.
- Recommends small businesses proactively assess their 1099s as a planning precaution.
IRS is likely to raise 1099 reporting threshold from $600 to $1,000 for 2024.
The Employee Retention Tax Credit ($26,000) application freeze
- Third party consultants spurred application rush.
- Most not qualified due to feeding frenzy.
- No new claims are being accepted.
- Applicants can withdraw their claim or submit new info.
Corporate Transparency Act
- Must report beneficial ownership by Jan 1, 2025 if established before 2024.
- Must report within 90 days if established in 2024.
- Beneficial ownership consists of individuals with over 25% ownership stake or exercise a similar control over the company’s equity.
Want to listen to the interview? Catch the replay from the U.S. Chamber of Commerce.
