3 ways tax cuts may affect your business
January 16, 2018
By Jerry Bellune
The $1.5 trillion federal tax cuts may affect you and your employees dramatically.
It is a good idea to discuss the following with your bookkeeper, your partners and your CPA or tax accountant.
1. Your corporation.
If you operate an S-Corp, LLC or are a sole proprietor, you may want to change to a C-Corp. As we wrote here a few weeks ago, the cuts favor C-Corps. The cost to convert can be small if you do it yourself. Take a look at available online programs or talk with your attorney and tax preparer.
2. Employee pay.
More than 90% of workers will have more pay under the withholding changes effective by Feb. 15.
The IRS is to provide more information to help you and your people understand and review changes. Your accountant or tax preparer should be your best source of information about how to do this.
3. Recruiting competition.
Do you engage low-skill workers or contractors who do? Hourly pay raises for low skill workers will increase competition for retailers, e-commerce businesses and others who require them. Walmart plans one-time bonuses and an $11 an hour minimum.
Competition for the highly skilled will increase. AT&T, Nephron Pharmaceuticals and Comcast plan $1,000 bonuses for most of their employees. Wells Fargo and BB&T are raising minimum pay to $15 an hour. This could make it more difficult for small businesses to attract and retain better people.
Copyright 2018, The Bellune Co., Inc.
http://jerrybellune.net/3-ways-tax-cuts-may-affect-your-business/
