This weekend we got a chance to see what’s trending in the world of music via the 66th Annual Grammy Awards. But something that wasn’t talked about on stage was the struggles of the music industry right now.
A lot of artists are facing difficulties with promoting their music online thanks to Universal’s battle with TikTok. And many music giants, including Universal and Spotify, are issuing layoffs across the board.
And yet, Taylor Swift is a juggernaut through it all with really industry-savvy moves like re-releasing her old albums and producing her own movie.
It pays to pay attention to what’s trending and strategize about how to capitalize on it.
Before I get to those things, let me make a quick plug for getting on my calendar because business tax deadlines are coming and last-minute action is NOT a good strategy for keeping your business compliant and tax-light.
There are a lot of nuances to business tax strategy (capitalizing on deductions, dealing with ERC withdrawals, payroll adjustments, etc.) and those take time to sort through.
Book a time here:
218-623-6050
I’m often asked by my business clients this time of year what they need to know that’s new for 2024. Since I’m having these conversations individually, I figured I might as well write about it for you too.
In addition to the newest regulations that we know for sure are happening, I’m also including some small business trends on the horizon that are good to at least be aware of. Now you know.
TCG Accounting’s Guide to 2024 New Small Business Trends & Regulations
“Small businesses are essential, not just for the economy, but for the soul of our communities.” – Amanda Brinkmann
New year, new list of small business trends to follow. This article is intended to give you a quick overview so you don’t have to go track down each new tidbit you hear about in the news.
This list isn’t all-inclusive; it’s a sampling of the small business trends I’ve been watching with interest.
Definitely happening
- Minimum wage increases – If your state is seeing an increase this year, you likely already know about it. Over 20 states will get wage hikes this year — here’s the full list of states, new minimums, and effective dates.
- Venmo and Paypal payment reporting requirement pushed – In November, the IRS once again pushed back a rule about reporting payments over 600 dollars through third-party platforms like Venmo or Paypal. Instead of needing to report those payments for 2023, they’re looking to establish a 5K threshold for the 2024 tax year as part of a gradual approach towards implementing the 600 dollar reporting requirement.
- Business ownership reporting with FinCEN – I’ve already written about this multiple times in recent months so I won’t spend a lot of time here. Most businesses formed before 2024 have until Jan. 1, 2025 to report their owners, but new companies created this year get 90 days from “go-live” to share that info with the government.
Possibly happening
- Expanded overtime eligibility – In August, the Department of Labor proposed a rule to extend overtime eligibility to 3.6M more workers. This change would require salaried employees in certain roles to receive overtime pay if they earn less than $55,068 annually (for full-timers), a significant increase from the previous $35,568 threshold. Legal challenges are expected when the final rule is released, which could happen in 2024.
- Additional reporting for small business loans – To reduce discrimination and boost transparency in loans, the Consumer Financial Protection Bureau (CFPB) decided last year to require banks to report demographic and income details of small business loan applicants. The goal is to create a mortgage industry-like database.
But critics argue these new rules may slow down and make it harder to get small business loan approvals. The CFPB has temporarily delayed compliance deadlines due to ongoing legal matters, but this is a crucial development to watch in 2024.
Interesting to note: As a result, 42 percent of small businesses are considering alternative financing options like crowdfunding, revenue-based financing, and invoice factoring in 2024.
Who knows if they’re happening but they’re interesting
- This small business trend isn’t going away: 72 percent of Gen Z and Millennials plan to start a side gig in 2024.
- 58 percent of small businesses say access to affordable healthcare for employees is their biggest regulatory challenge in 2024. I’m curious if you feel the same?
- Almost half of small businesses are planning to permanently adopt a hybrid or fully remote work model in 2024.
What small business trends would you add to this list, my friend?
Looking ahead for you,
The TCG Accounting Team
