Companies: Why You Need to Start Setting Aside Hidden Tax Money
Download MP3Overview:
In this episode, we explore the reality of unfunded government mandates and how businesses, especially small to medium companies, need to prepare for them. These mandates are becoming increasingly common, and businesses must start allocating a percentage of their revenue to comply with them. This isn’t about criticizing government policy—it's simply about planning for the inevitable changes that affect your operations.
In this episode, we explore the reality of unfunded government mandates and how businesses, especially small to medium companies, need to prepare for them. These mandates are becoming increasingly common, and businesses must start allocating a percentage of their revenue to comply with them. This isn’t about criticizing government policy—it's simply about planning for the inevitable changes that affect your operations.
Key Takeaways:
- Allocating Funds for New Mandates:
Businesses should start setting aside 2-3% of their revenue to cover upcoming government regulations and mandates. This proactive approach helps ensure that companies are ready for changes that may affect their operations and finances. - Payment Processing Regulations:
- The Federal Trade Commission and the Consumer Financial Protection Bureau (CFPB) are putting pressure on payment processors (banks handling merchant transactions).
- New rules focus on preventing fraud and protecting consumers from manipulative marketing tactics, also known as "dark patterns."
- Businesses must ensure their marketing techniques do not inadvertently deceive less sophisticated customers, or they could face fines or lose their merchant accounts.
- Companies will need to adjust their business models to account for less informed customers and avoid penalties.
- Retirement Accounts Mandates in Oregon:
- Oregon has introduced a new law requiring businesses to set up retirement accounts for employees, where 5% of each paycheck must automatically be directed to a retirement fund.
- Employers are not required to contribute, but they must create and manage these accounts, with fines for non-compliance.
- These new requirements will create additional administrative costs and liabilities for businesses.
- Shopping Cart Mandates in Washington State:
- Stores in Washington face fines related to abandoned shopping carts, even if they are stolen.
- Businesses must pay fees to retrieve carts from a designated "shopping cart jail" or face destruction fees if the carts are not reclaimed within a specified period.
- The regulation has financial impacts and affects store operations, particularly if customers cannot find carts available when shopping.
Conclusion:
These are just a few examples of the growing number of unfunded mandates that businesses are facing. As these regulations become more widespread, it's crucial for businesses to factor these costs into their financial planning. Let us know how you’re dealing with similar regulations and how they're impacting your operations.
These are just a few examples of the growing number of unfunded mandates that businesses are facing. As these regulations become more widespread, it's crucial for businesses to factor these costs into their financial planning. Let us know how you’re dealing with similar regulations and how they're impacting your operations.
Call to Action:
- Share with us your experiences with government mandates and how you’ve adjusted your business strategies to accommodate them.
