How the evolving trade issue with China is impacting small businesses, the attempt of two state legislators to protect SBOs from the burden of collecting sales tax for other states, and an innovative program that turns unused PTO into school loan assistance.
Welcome to the Small Business Run Down. Each day, we bring you stories and trends that impact small business owners and their workforce.
Today we take a look at how the evolving trade issue with China is impacting small businesses, the attempt of Oregon and New Hampshire legislators to protect SBOs from the burden of collecting sales tax for other states, and an innovative program that turns unused PTO into school loan assistance.
Smallest companies cut most jobs as trade wars wage on
As trade wars with China intensify, the smallest US businesses are taking the biggest hit, according to a recent economic data. While the tight labor market and rising minimum wage aren’t making things easy for SBOs, high tariffs on Chinese imports are a large cause behind the dip in jobs and the decline in manufacturing.
The Number: 18,000. Companies with fewer than 20 employees are taking the biggest hit, cutting approximately 18,000 jobs last month.
The Quote: “The trade wars and a slower global economy ‘are fast at work already doing real damage of the foundation of this economic expansion.”
Oregon and New Hampshire fight back against taxation law
US senators in Oregon and New Hampshire have introduced legislation aimed at reversing a recent Supreme Court decision requiring businesses in tax-free states to collect sales tax for on-line sales in other states. The legislation takes on Supreme Court’s 2018 ruling on South Dakota vs. Wayfair Inc that redefined as “nexus” relationship as a connection to a state that could be economic and not just physical in nature.
The Number: 200. According to the South Dakota ruling, a business in a tax-free state must collect sales tax for another state if they have 200 separate sales transactions or do $100,000 worth of business.
The Quote: “The Amazons of the world, or the sizable businesses, they have the infrastructure to be able to do this, and that’s not such a burden. But to a small business it’s an enormous burden.”
New York hospital turns unused PTO into school loan payments
A New York hospital has started a program to make sure employees don’t have to choose between paying their school loans or paying the rent on time. Following in the footsteps of Sotheby’s Auction House, the hospital offers the benefit to both part-time and full-time employees and seeks to capitalize on trends among younger workers that indicate that millenials would choose loan-repayment assistance over a 401(k).
The Number: $5000. Montefiore St. Luke’s Cornwall Hospital will allow employees to convert between 30 and 75 hours of unused PTO into payments toward school loans, for a maximum of $5000 per year.
The Quote: “Medical graduates are often faced with what can seem like an insurmountable amount of debt as they transition from student to medical professional.”