The Small Business Daily Rundown: Health Insurance for Small Biz, Wayfair Sales-Tax Ruling Hurting Sellers
Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
On the docket for today: Cigna + Oscar Health = insurance plans for small businesses, the continuing fallout of the South Dakota v. Wayfair Supreme Court ruling, and Cali workers seeking an exemption from AB-5.
Cigna and Oscar team up to offer coverage for small businesses
Health insurance company Cigna is teaming up with Oscar Health to launch commercial insurance plans tailored for small businesses in 2020. The Cigna + Oscar Health plans will launch in limited markets initially and then expand over time, offering “integrated medical, behavioral and pharmacy services” for small businesses and their employees. Currently, the plans are pending regulatory approval.
The Number: 500,000. Execs from Oscar and CINGA expect to see up to 500,000 companies signing up for their new small business products each month.
The Quote: “Together, we are giving small business owners an affordable, simple-to-use option that makes it easier for their employees to get appropriate care quickly and stay healthy.”
Supreme Court “Wayfair” decision continues to cause SBOs compliance stress
While it’s been just under 2 years since the 2018 Supreme Court ruling on South Dakota vs. Wayfair, many small business owners across the country continue to deal with considerable stress around complying with the new law. Even for businesses that don’t have to actually collect and remit sales taxes, states place considerable burdens on companies to demonstrate compliance with exemption laws. A total of 37 states have adopted the new remote tax laws, forcing SBOs to track the requirements in each state in which they do business.
The Number: $2.39. Arizona small business owner Brad Scott estimates that his company spends $2.39 for every $1.00 it collects in sales tax.
The Quote: “We’re stockpiling money in case of audits or fines.”
California workers continue to seek exemptions from AB-5
App-based drivers and other gig workers in California are using a proposed ballot measure to seek exemptions from California’s AB-5 worker classification law. As of January 1, 2020, many gig workers lost “independent contractor” status under the new law, whether they wanted to or not. While the new legislation was enacted to expand worker protections, many former independent contractors are not pleased that they’ve lost their right to decide when and how much they will work.
The Number: $90 million. DoorDash, Uber, and Lyft have already put up $90 million to fight California’s new worker classification law.
The Quote: “AB 5 is an irrational and unconstitutional statute designed to target and stifle workers and companies in the on-demand economy.”