What do you think the most important trend affecting small business will be?
Law & Taxation mentor Barbara Weltman responds to the following questions:
What do you think the most important trend affecting small business will be? How best can owners position their companies to take advantage of it?
Barbara Weltman's response: The most important trend I see affecting small business is the increased use of the Internet to simplify tax obligations. Small business can now pay taxes online, file quarterly employment taxes online and obtain vital tax information online. The IRS, the Department of Labor, the Small Business Administration and some states are working to develop one-stop filing for employment taxes (called the Simplified Tax and Wage Reporting System or STWRS) -- one quarterly return for both federal and state employment tax purposes.
For small-business owners who handle their taxes, this trend means spending less time on taxes -- time available to run the core of the business -- as well as greater certainty that tax obligations are being satisfied -- avoiding costly penalties and interest. For small businesses that use accountants or other tax experts to handle tax matters, this simplification can translate into fee reductions.