Paychex, Inc., the nation’s leading provider of payroll services to small businesses, today released its list of the top five issues of great importance to small business owners and entrepreneurs as the country approaches the upcoming national election.
According to the U.S. Small Business Administration, small firms represent 99.7 percent of all employer firms and employ half of all private sector employees in the U.S., making the concerns of small business owners especially significant to the November election.
“As campaigns for elected office intensify between now and November, it is important that the issues small business owners care about are included as part of the national debate,” said Martin Mucci, Paychex president and CEO. “Paychex works hard to help business owners and entrepreneurs stay on top of the issues that influence how they run their businesses, and we want to ensure their voice is heard.”
The regulatory team at Paychex has identified the following five election-year issues of importance to small business owners and entrepreneurs:
1) Taxes: Deficit reduction and tax reform are sure to be significant areas of dialogue during the election, especially when considering the potential provisions that could specifically impact small businesses. These provisions include: the continued viability of business structures (such as S-corps) largely intended to provide insulation from certain types of tax; the possible scaling back (or conversely, creation) of certain tax breaks targeted specifically to businesses; the ongoing potential for increased unemployment tax burdens on businesses; and the general question of whether the basic federal business tax rate should be adjusted.
2) Overall Regulatory Burden: Another likely election subject will be the degree of existing and proposed regulations facing small businesses and the appropriate balance between business and consumer priorities. In addition to taxes, the existence of a ”business-friendly” environment, also referred to as freedom from undue regulatory burden, is usually seen as a primary factor in a small business owner's appetite for expanding and/or investing in his or her business.
3) Employment Regulations: A particular area of focus this election season will be the topic of worker-focused regulation by the federal government. Such regulations include an increase to the federal minimum wage, the creation of additional ”protected” categories during the hiring process (i.e. the unemployed, those with criminal records or poor credit histories), steps to ease the formation of labor unions, and other items which might not garner broad support from the business community.
4) Immigration: Early indications are that immigration policies may be a key point in the election, particularly in select swing states. A key focus of the immigration debate will likely be the extent businesses should play a role in managing and enforcing immigration policy through hiring practices.
5) Retirement Security: An item which could emerge as an election issue is the growing concern over the inadequacy of retirement savings for many Americans, and the possible role that some think employers could play in a mandated solution such as an Auto IRA program or other similar option.
The election-year list was compiled by the regulatory team at Paychex, which works closely with the IRS and other government agencies to constantly monitor legislative and regulatory issues that impact the company’s 564,000 clients across the country.
Paychex released the list as part of its sponsorship of National Small Business Week, May 20-26, a weeklong celebration and annual conference, hosted by the Small Business Administration, recognizing the special impact made by American entrepreneurs and small business owners.
In honor of the week, Paychex will provide new resources and features on its website for entrepreneurs and small business owners, BuildMyBiz.com, including a special podcast and blog post on this topic.
To learn more about these or other regulatory issues Paychex is following, please contact Paychex or visit http://media.paychex.com/regulatory-updates/ for the latest Paychex Regulatory Update, a monthly list highlighting the latest in small business regulatory issues.
Paychex, Inc. (NASDAQ:PAYX) is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex®. Human resource services include 401(k) plan recordkeeping, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. A variety of business insurance products, including group health and workers' compensation, are made available through Paychex Insurance Agency, Inc. Paychex was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 564,000 payroll clients nationwide as of May 31, 2011. For more information about Paychex and our products, visit www.paychex.com.
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