Government Regulations Burning Employer’s at Both Ends
Guest Blog: Jordan Alvarez
The term ‘business owner’ is thrown around quite a bit – so much so that we forget it’s true meaning. Business owners are more than just important people. These individuals put their entire lives on the line day in and day out to make their vision come true. They are committed to providing a better life for their families, themselves and the community around them. However, the government doesn’t view them in this light.
There are entire industries of businesses that have developed due to governmental regulations simply to help business owners stay compliant with the many regulations that they deal with. Take the Professional Employment Organization (PEO) industry for example. These companies co-employ a small business’ labor force by assuming control over compliance related tasks, usually in functional areas like Human Resources, Safety and Risk Management, Benefits and Payroll.
The list of items a business owner is forced to manage has grown exponentially, and will sadly continue to increase, if we do not take action to reverse it. This creates a situation where the business begins to run you, not the other way around. It doesn’t take long before the loss in productivity, when monetized, can literally cripple a business. And God forbid you violate any of these regulations and have to pay steep fines.
Business owners did not ask for these responsibilities; it is a sad situation in which it comes with the territory by nature of doing business in present day America. This should not be so.
At the same time the regulations in the aforementioned areas continue to rise, federal taxes on small businesses continue to increase. Around 80% of our nation’s jobs are with small to medium size employers, making them the backbone of this country. And how are they repaid? The government continues to dip their hands into their seemingly endless pockets to pay for the leviathan that has become the federal government.
Therefore, the conundrum trapping business owners is burning their candle at both ends. On the one hand, the government makes it nearly impossible to comply with their long list of regulations, thus birthing industries like that of PEO’s, and simultaneously further complicating tax codes and increasing corporate tax rates.
How on earth is an employer expected to attract top talent, pay higher wages, remain competitive in their market and grow their company (jobs) when this is their new norm? It is very difficult to say the least.
What is the solution, you might ask? Simple, get government out of the way so the creativity of our entrepreneurs can continue to innovate and produce products and services that drastically improve all of our lives. It should be simple to onboard an employee. You shouldn’t be in constant fear of a lawsuit from one of your employees and the employee friendly judge that will hear the case. Unemployment insurance, payroll taxes, benefits, quarterly and annual filings, and the corporate tax rates should all be simplified and/or reformed to protect business owners and spur additional investment.
Our government has the unique ability to tax businesses and the public at higher rates to increase their revenue with one wave of the pen; a small business owner must toil, struggle and fight for their very life to be the best and grow revenue. If we start treating them as the lifeblood of our economic engine, we would cause a great recovery for this nation. If we band together, remain vigilant, and act when necessary, we can truly cause America to prosper once more.