New Year, New Business: Planning Ahead for a 2022 Business
Author: Steven M. Lutz
POST DATE: 12.2.21
According to a 2021 National Federations of Independent Business survey of 526 small business owners in Indiana, almost a third said they don’t expect business to be back to normal until 2022, and 11% said they don’t expect it to return to normal in 2023. If the new year has you considering starting a small business, let CCHA equip you with what you need to know to get your business up and running. We’ve already covered what you need to know to start your business, but here are some additional tips to consider, as we count down to 2022.
1. Consider remote work + multi-state compliance
As we continue to pivot as a result of the COVID-19 pandemic, new businesses should consider remote and multi-state work compliance.
One question small business owners should consider is whether to allow employees to work from another state – permanently or temporarily. Employers should have clear guidelines and policies regarding what is expected of the employee in terms of hours, availability, and work product, whether remotely located or otherwise. Some general considerations might include:
- Detailing normal work duties and responsibilities;
- Determining the employee’s regular and expected hours of work;
- Determining how to communicate work assignments and personal needs, including reporting absences of work as a result of injury, illness, or caring for a family member;
- Deciding and communicating the company’s policies and practices related to information security and data protection; assuring that unauthorized individuals do not access company data, in print or electronically; and preventing access to restricted-level information in print or electronically unless approved by the supervisor; and
- Maintaining a safe environment in which to work.
For employees wanting to work out of state either all the time or for a period of time, there are potential tax and payroll issues for both the employee and the employer, though there is not a single one size fits all answer. It will depend on the state in which the individual is performing work, how long the individual is there, and a host of other factors.
For example, employers may be responsible for the other state’s taxes, including income taxes, depending upon the state in which the business operates and the employee resides. Each state’s income tax and withholding requirements vary significantly, and may be based on both personal residence and/or work location. To complicate things further, states have differing thresholds for when an individual working remotely in that state triggers tax implications. Any remote work completed beyond the threshold may require the business to consider its obligation to file state tax returns and pay taxes in any other states where employees reside.
Compliance
Employment tax liabilities may be triggered for multi-state employees who telecommute or who report interstate status. Special payroll tax issues may apply to nonresident employees who work in one state and live in another. Some states may have reciprocal agreements with certain states, simplifying withholding tax guidelines as income will be taxed in only one state.
2. Apply for small business grants
When it comes to starting a new business, everyone could use a leg up. That’s why it’s wise to consider whether it makes sense to seek help from government sources as well as the private sector.
The US Chamber also has a list of sample grants and assistance available, which you can find here.
Government Grants
The US Chamber recommends starting your search for a grant from the federal government at Grants.gov. This resource provides information related to government resources and helps identify a large database of funds the government may offer to small business owners and provides other helpful information, including information regarding how to apply for grants.
The US Chamber also currently provides a list of nonprofit and corporate entities offering grants and other assistance to small businesses, open to qualifying small businesses in any industry.
Contact CCHA for Business Services expertise
The Business Services attorneys at CCHA are equipped and ready to help you steer your new business toward success in 2022. Get in touch with us for experience and expertise you can count on.
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