Small Businesses are Facing a Very Uncertain Year

A national business expert explains how a new administration will be creating challenges - and opportunities - that will impact millions of small companies and their employees.

BACKGROUND:
A new administration will bring changes in policy that could have a major impact on the U.S. economy and the nation’s 33 million small businesses and their employees. While inflation is easing going into the new year and the Fed has made several recent interest rate cuts, looming tariffs, a changing regulatory landscape and a technology upheaval driven by artificial intelligence (AI) will all be major issues in 2025.

Whether you are a business owner or an employee, there are several key financial topics to pay close attention to this January:

Taxes and Tax Credits: Many tax provisions contained in the 2017 Tax Cuts and Jobs Act (TCJA) are scheduled to sunset at the end of 2025. This could lead to income tax withholding changes, bonus depreciation, debate over the corporate tax rate and more.
Retirement: Effective January 1, a provision under SECURE Act 2.0 will require employers to auto-enroll employees in any new 401(k) or 403(b) workplace retirement plan established after December 29, 2022.
Paid Leave: There are more than 40 jurisdictions with Paid Sick and Safe Leave (PSSL) laws, and several more jurisdictions making PSSL available in 2025. Businesses should start preparing for these new requirements in 2025.
Wage and Hour: A total of nearly 70 minimum wage increases at the state, local, and even industry-specific level are scheduled to take effect January 1, 2025. Businesses should also keep a close eye on state pay transparency laws going into effect in the new year.
AI: With AI adoption and innovation constantly evolving, businesses should pay close attention to changes in regulation and legislation. Businesses should anticipate a ramp-up of state-level AI regulations in 2025 to address hiring bias, threats to copyright protections, and breaches of privacy.

In this segment, CPA, business owner and national columnist Gene Marks shares his expert insights on the changing economic landscape in 2025 and how your business and employees can best prepare for the year ahead.

For more information, please visit: go.paychex.com/2025

MORE ABOUT GENE MARKS
A former columnist for both The New York Times and The Washington Post, Gene Marks, CPA, now covers public policy, the economy, workplace and technology issues impacting businesses weekly at The Hill, The Guardian, Forbes, Entrepreneur, The Philadelphia a Inquirer and The Chicago Daily Herald. Gene’s firm, The Marks Group PC, provides financial and technology consulting services to hundreds of businesses across the country and through his many keynote presentations to industry associations, Gene helps business leaders understand and navigate the political, economic, operational and technological issues and trends that will impact their companies.

Produced for: Paychex