Key Regulatory Changes Small Businesses Must Understand for 2024

Aquib Nawab


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1. Registering with FinCEN

One critical change is the requirement for small businesses to register with the Financial Crimes Enforcement Network (FinCEN). This mandate stems from the Corporate Transparency Act passed in 2021.

Credits: Brookings

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2. Corporate Transparency Act Details

Corporate Transparency Act combats shell company financial misconduct. Exemptions available for businesses with 20+ employees and $5M+ sales. However, 32 million small businesses must register personal info with FinCEN, including photo ID and address.

3. Reporting Digital Transactions

The Internal Revenue Service (IRS) has delayed a requirement for reporting digital transactions exceeding $600 via third-party providers such as Venmo and Zelle. This decision, made under the American Rescue Act, will now extend into 2024.

Credits: reuters

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4.  New Reporting Requirement for Small Business Loans

Small businesses, especially women and minorities, face loan challenges. The Consumer Financial The Consumer Financial Protection Bureau aims to address this by mandating banks to report applicant demographics and income, promoting transparency.

5. Impact of Small Business Loan Reporting

While the intent behind the new reporting requirement is commendable, concerns have been raised. Small business advocacy organizations worry about increased paperwork, privacy risks, and potential hindrances to securing loans.

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Credits: SHRM

6. National Labor Relations Board Joint-Employer Rule

The National Labor Relations Board has revised the joint-employer rule, expanding its definition. This rule can hold two companies jointly liable for unfair labor practices, affecting most private-sector businesses.

7. Opinions on the Joint-Employer Rule

Opinions on the joint-employer rule are divided. Unions and worker groups see it as a protective measure, while small business advocacy groups find it burdensome and unfair.

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8. Minimum Wage Increases

In 2024, over 20 states plan to raise their minimum wages. For instance, Nebraska's minimum wage will increase by $1.50 to $12 on January 1, and Florida's will rise by $1 to $13 on September 30.

9. Proposed Overtime Rule

The Department of Labor has proposed a rule to expand overtime eligibility to more workers. This regulation could significantly impact businesses, but it faces expected legal challenges.

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10. Potential Disruption

The proposed overtime rule could disrupt small businesses, affecting their costs and workplace models. As it moves toward implementation, it remains a critical issue to monitor in 2024.

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