After months of delays and confusion, employers learned that they must push forward to meet the September deadline to report employee pay data to the EEOC.
Welcome to the Small Business Run Down. Every day, we bring you stories and trends that impact small business owners and their workforce.
Happy Friday. Today we look at a federal judge’s ruling on sending pay data to the EEOC, the Supreme Court’s ruling on employee class arbitration and the benefits of the R&D tax credit for SMBs.
EEOC’s September deadline for pay data upheld by federal judge
After months of delays and confusion, employers learned yesterday that they must push forward to meet the September 30th, 2019 deadline to report employee pay data to the EEOC. A federal judge ruled that more than 60,000 companies must fulfill the second component for EEO-1 reporting that requires a “snapshot” of employees’ pay data. Proponents of EEO-1 say the data will help narrow wage gaps for women and minorities.
The Number: 100. Companies with 100 or more employees must comply with the September 30, 2019 deadline.
The Quote: “The big question is, what is EEOC going to with this data?”
Supreme Court rules in favor of businesses on arbitration matter
The highest court in the land handed a win to businesses earlier this week when it ruled that employees can only band together for class arbitration if specifically allowed by their contracts. The case involves a California man who brought a class action suit against his employer after a workplace data breach led to a fraudulent tax return being filed under the man’s name. Since the man had signed an arbitration agreement at the time of employment, the court ruled that the matter must be settled through arbitration, though class arbitration was allowed. The Supreme Court overturned this decision.
The Number: 5-4. The court ruled in favor of businesses by a 5-4 margin, with Chief Justice John Roberts writing the majority opinion and all opposing justices writing an individual dissent.
The Quote: “Neither silence nor ambiguity provides a sufficient basis” for concluding there is a right to class arbitration.”
R&D credit can provide tax relief for small businesses
Small and medium-sized businesses increasingly are taking advantage of the Research & Development tax credit, allowing them to expand operations and lower their tax burden. Although this tax break has been around for nearly forty years, Congress widened its impact in 2015, passing legislation to include small and medium-sized businesses. SBOs are wise to evaluate their operations and determine if they qualify for this incentive.
The Number: 10 billion. The R&D tax credit provides businesses with approximately $10 billion in savings each year.
The Quote: “These [small] businesses are still failing to take advantage of the credit – while big businesses such as Amazon continue to use the credit to its full potential, greatly reducing, or wholly eliminating, their tax bill.”
13 Additional Tax Credits for Small Businesses
If your company doesn’t qualify for the R&D tax break, consider these 13 small business and hiring tax credits. The Work Opportunity Tax Credit (WOTC) aims to help get specific target groups–like veterans–on the payroll and provides incentives to companies who hire these individuals. There are important steps to claiming WOTC credits, including a certification process.
The Number: 2,400. Hiring a qualified non-injured service member can earn your business up to $2,400 in tax credits.
The Quote: “Helping Americans get back to work is the impetus behind these small business hiring credits, and for many businesses, the costs that are offset are only part of the benefit.”