What changes should small businesses be aware of for 2025?

ABC News - Dec 21st, 2024
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As 2025 approaches, small business owners face several significant changes, including state-level adjustments to overtime and minimum wage laws, the potential impact of inflation, and regulatory shifts under a new administration. The Small Business Administration (SBA) is set to welcome Kelly Loeffler, a Trump loyalist, as its new leader, pending Senate confirmation. Inflation, having decreased from its peak in 2022, remains a key concern, with the Federal Reserve adjusting its projections and the incoming Trump administration potentially influencing inflation through policies like tax cuts and tariffs. Business owners must navigate these dynamics to remain compliant and competitive.

Further complicating matters, businesses must adapt to new regulations such as the FinCEN registration mandated by the Corporate Transparency Act and changes in tax reporting for third-party payment apps. The delayed FinCEN registration requires small businesses to submit personal information, facing fines if non-compliant. Meanwhile, third-party app transactions over $5,000 will be taxed, marking a shift from previous thresholds. These developments underscore the need for small businesses to stay informed and agile amid evolving regulatory landscapes and economic uncertainties.

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RATING

7.2
Fair Story
Consider it well-founded

The article provides a comprehensive overview of the key changes small business owners should anticipate in 2025, particularly in the context of a new administration. It is generally accurate and informative, offering a fair range of perspectives on potential policy changes. However, the article could benefit from more rigorous sourcing and clearer explanations of certain complex topics. While the language is mostly clear, there are areas where clarity could be improved, especially in the presentation of regulatory details. Overall, the article effectively summarizes the challenges and considerations for small business owners, though it could enhance its credibility and balance with more detailed sourcing and nuanced representation of differing viewpoints.

RATING DETAILS

8
Accuracy

The article largely presents accurate information, particularly regarding the projected impacts of policy changes under a new administration. It correctly identifies key issues such as inflation forecasts and changes in state-level wage regulations. However, some claims, such as the specific influence of new administrative policies on inflation, are speculative and lack detailed evidence or expert analysis. The article accurately reports projected inflation rates and the proposed tax cuts, but it could benefit from more precise sourcing or data to support these claims. Overall, the factual accuracy is strong, but certain complex issues would benefit from more detailed substantiation.

7
Balance

The article attempts to present a balanced view by citing multiple stakeholders, including business advocacy groups and small business owners. However, it leans slightly towards the perspectives of business-friendly voices without equally representing potential opposing views, such as those from labor organizations or economic analysts who might foresee different impacts of the policy shifts. For example, while Karen Kerrigan's viewpoint is included, there's limited discussion on how these policies might negatively affect workers or the broader economy. A more balanced article would provide a deeper exploration of varied perspectives on the potential economic and social implications of the new administration's policies.

8
Clarity

The article is generally well-structured and written in a clear, accessible style. It effectively outlines the key topics of interest for small business owners, such as inflation and regulatory changes. However, some sections, particularly those discussing complex regulatory frameworks or economic forecasts, could be clearer. For example, the explanation of the FinCEN registration requirement could be more concise and easier to understand for readers unfamiliar with the topic. Additionally, while the tone remains mostly neutral, certain sections could benefit from more straightforward language to avoid potential confusion. Enhancing clarity in these areas would improve the overall readability and comprehension of the article.

6
Source quality

The article references several credible organizations, such as the Small Business & Entrepreneurship Council and the U.S. Chamber of Commerce, which lends some authority to the claims made. However, the article lacks direct citations or links to primary sources, such as government reports or official statements, which would strengthen its reliability. Additionally, while it mentions specific individuals and their roles, it doesn't always specify the basis of their expertise. Including a wider range of expert opinions or data from authoritative sources would enhance the article's credibility and provide a more robust foundation for its claims.

7
Transparency

The article provides a reasonable amount of context, outlining potential policy changes and their implications for small businesses. However, it could improve transparency by disclosing more about the sources of its information and any potential conflicts of interest. For instance, while it mentions the new SBA leader's political affiliations, it doesn't explain how this might influence policy or administration priorities. Additionally, the article could offer more insight into its methodology for assessing the impacts of policy changes, particularly regarding inflation and regulatory shifts. Greater transparency in these areas would increase the reader's ability to critically evaluate the claims made.