Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
It’s a short week, so let’s dive right in! We’ve got lawmakers in Washington, D.C., repealing ACA-based tax provisions, business owners in Washington State looking for ways to cover payroll in light of upcoming minimum wage increases, and a year-end roundup of some of 2019’s major themes for small businesses! Go!
President signs bill to repeal ACA ‘Cadillac tax’
Business owners and employers around the country may be letting out a big sigh of relief as President Trump signed a bill repealing part of the Affordable Care Act (ACA). The Cadillac Tax provision of the ACA was supposed to go into effect in 2020 and would’ve levied an excise tax on high-dollar, employer-sponsored healthcare plans.
The Number: $10, 200. The so-called “Cadillac Tax” would’ve taxed employer-sponsored plans worth $10,200 for self-only coverage.
The Quote: “I think you might see an acceleration of offering more plan type choice.”
Small businesses prepare for minimum wage hike
In Washington state, small business owners are looking for ways to offset the latest increase to the minimum wage. In Washington, the minimum wage has increased by 42.6% over 4 years, driving many SBOs to make hard choices between raising prices, cutting employee hours or operating with tighter margins.
The Number: $1.50. In Washington state, the minimum wage will jump from $12 to $13.50 in January of 2020.
The Quote: “I have to be able to pay my bills and stay in business.”
2019 in review: The best and worst of U.S. small business trends
Interested in some of the biggest trends in U.S. small businesses in 2019? According to this columnist, it’s all about unlimited vacation, the growth of female entrepreneurship, and the continuing reign of Baby Boomers in small business. Check out these 5 stories for an interesting perspective.
The Number: 1,817. In 2019, women started 1,817 new businesses in the U.S.
The Quote: “The fact is that America’s small businesses are still dominated by people in their 50s and 60s, and if you’re marketing to small businesses, you best not ignore this demographic.”