In 2024, small businesses will face a variety of regulatory changes. One significant update is the requirement to register with the Financial Crimes Enforcement Network (FinCEN) under the 2021 Corporate Transparency Act. This act targets shell companies and financial crimes, affecting businesses with fewer than 20 employees or less than $5 million in sales. Compliance deadlines have been extended, with existing businesses needing to register by January 1, 2025.
Another notable development is the IRS’s decision to delay the requirement to report digital transactions over $600. This threshold is set to increase to $5,000 for the 2024 tax year, a move that aims to reduce confusion among small businesses.
Additionally, the Consumer Financial Protection Bureau is introducing new reporting requirements for small-business loans. This initiative aims to reduce lending discrimination by requiring banks to report the demographics and income of loan applicants, similar to practices in the mortgage industry.
The National Labor Relations Board’s revised joint-employer rule also comes into play. It expands the definition of a ‘joint employer’, making it applicable to more businesses, potentially increasing liability for unfair labor practices.
Furthermore, small businesses must stay informed about the minimum wage increases in over 20 states and the Department of Labor’s proposed overtime rule. This rule could expand overtime eligibility to more salaried workers, significantly impacting payroll costs.
2024 brings several regulatory changes that small business owners must navigate. Staying informed and preparing for these changes is crucial for compliance and continued success.