Welcome to the Small Business Run Down. Each day we bring you stories and trends that impact small business owners and their workforce.
It’s Friday and the jury–or at least one survey–is in on the impact of the new tax code on small businesses. Also: cool and creative perks for employees and the need for small businesses to fill government IT procurement contracts. Have a great weekend!
A recent survey indicates that half of small businesses saw a 10% drop in their 2018 tax bill under the Tax Cuts and Jobs Acts. Although the survey found that SBOs maintain their general optimism, it also highlights their dissatisfaction with the recent changes in tax policy among SBOs.
The Number: 8%. According to the survey, 8% of small business owners saw their tax bill increase under the legislation and 49% of respondents report no change in their 2018 taxes.
The Quote: “One of the most interesting findings was that the Tax Cuts and Jobs Act hasn’t necessarily provided the universal return it was supposed to…”
When it comes to recruiting and retaining talent, it’s all about the unique perks these days. Human resources officers in businesses large and small are finding new, exciting ways to attract employees, improve morale and emphasize a healthy work-life balance.
Free fresh produce and meals, onsite sports courts and tournaments, pet insurance, and healthcare services are all offered as part of benefits packages in an attempt to give companies a competitive edge in the tight labor market.
The Number: 14. Avanceon, a systems integration and engineering company with sixty employees throws 14 parties each year for its workers, as well as offering a ping-pong league and an unlimited number of paid days off.
The Quote: “It’s great. We attract top talent. It creates a very family-oriented and friend-oriented culture that a lot of people enjoy.”
Government agency and marketplace experts highlighted the need for small businesses to fill government contract needs at the 29th Annual Federal Procurement Conference in Washington, DC yesterday. Increasingly, large companies are contracting with smaller companies and groups of SBOs are banding together to win big government IT contracts. Though valued for their agility, SBOs are sometimes unable to meet government requirements on their own, necessitating cooperation.
The number: 15. The House of Representatives is amping up support for small business contractors with legislation that would ensure SBOs working as prime or subcontractors for the federal government are paid within 15 days instead of the normal 30-day standard.
The Quote: “Contracting with teams that include both small businesses and large contractors is becoming a primary avenue for federal agencies to meet their small business set-aside goals.”
Unsure about the current minimum wage in your state or city? Thinking about opening a branch of your business in Arkansas and want to know what you’ll need to pay employees in 2020? Check out this handy chart showing current and future minimum wage changes across the country.