Here are five things that happened this past month that affect your small business. 

See Relax Tax’s Debt Guide at relaxtax.com/debt

1) The US Treasury proposed a global minimum corporate tax rate of 15%.

Continuing its push for a global minimum tax for businesses, the Treasury Department said on May 20th that corporations should pay at least a 15% tax on their earnings. That being said, the final rate could go even higher – a Treasury release said that the 15% minimum is a “floor and that discussions should continue to be ambitious and push that rate higher.” (Source: CNBC) 

Why this is important for your business:

If your business grows to be a multinational corporation, this would affect your bottom line.

2) As offices reopen, some employees don’t want to go back – ever.

As the economy continues to reopen, the conversation around working from home or returning to the office (or some combination) is growing louder. According to a Harris Poll survey, “Forty percent of Americans prefer to work from home full-time, compared with 35% who seek a home-office hybrid and 25% who want to go back to the office full-time.” (Source: USA Today) 

Why this is important for your business:

Deciding your work from home policies going forward will influence employee satisfaction (and probably retention). Choose carefully.

See this related post from Dennis Harabin: What's In It for Small Business Owners this July 2021?

While the country had “by no means gotten back to normal operating capacity at that point,” it is helpful to be aware that the recession was the shortest on record. This may feed arguments in favor of the “cash first” approach policymakers took, including the extensive financing for small businesses.

3) Inflation fears abound as prices across various sectors continue to rise. 

As the economy gains steam, “demand is coming back faster than supply. It’s a recipe for bigger price tags for everything from airline tickets to used cars, at least temporarily.” Congress has put the Federal Reserve in charge of controlling inflation, and while they think the jump in prices this year will fade, fears across the political spectrum continue. 

 (Source: The New York Times) 

Why this is important for your business:

Demand, supply, pricing – inflation would affect just about everything with your business.

4) As companies race to attract service workers, some are increasing their minimum wage. 

As shops and restaurants reopen, some – like Chipotle – are looking to add to their workforce and are increasing pay to entice candidates to come onboard. (Source: Fast Company)

Why this is important for your business:

The push for a $15 minimum wage seems to have stalled in Congress for now, but some businesses are feeling the need to increase their wages to catch the eye of new employees.

See this related post from Dennis Harabin: Tax Considerations for New Businesses
Expenses a business incurs in the beginning can include equipment purchases, vehicle purchases and use, leasehold improvements, organizational costs and start-up expenses, and each receives a different tax treatment.

5) As Americans start dining out again, food supply chain issues loom. 

People are heading back to restaurants, bars, and other types of dining establishments, but “suppliers and logistics providers say distributors are facing shortages of everyday products like chicken parts.” They’re also facing “difficulty in finding workers and surging transportation costs as companies effectively try to reverse the big changes in food services that came as coronavirus lockdowns spread across the U.S. last year.” (Source: The Wall Street Journal)

Why this is important for your business:

If your business is in the food and beverage space, these supply chain interruptions could create problems for your operations.

For any inquiries please give us a call at 551-249-1040.

Do you need more information? You can reach out to Dennis Harabin at Relax Tax today!

Recommended Readings:

• When Is Your Business No Longer a “Startup”?
• Top Marketing tips for getting your business noticed
• What You Need to Know Before Starting Your Own Business 
• Tax Tips: You Can Write Off Taxes on Business IT Purchases
• The Importance of Estimating Start-Up Costs Before Launching A New Business