2025 Regulatory Changes Business Owners Can’t Afford to Ignore

Running a small business is no small feat, and staying on top of regulatory changes is crucial for staying compliant and operating efficiently. As we head into 2025, our CEO Ross Buhrdorf highlights several regulatory shifts set to significantly impact small business owners. We’re here to help break down the complexities of these changes and provide simple steps you can take to stay ahead of the curve. Let’s explore the key changes to watch for and how to prepare your business.

New Reporting Requirements for Payment Platforms

Starting in 2025, third-party settlement organizations, such as CashApp, Venmo, PayPal, and Airbnb, are required to report transactions for goods or services where the total payments received are more than $2,500, down from $5,000 in 2024. Starting in 2026 and beyond, the threshold will be lowered to $600.

Why Transaction Reporting Matters for Your Business:

• If you use these platforms to accept payments for your business, these transactions will now be reported directly to the IRS.
• This means more scrutiny during tax season, and any unreported income could result in penalties or additional taxes.

What can you do?

• Track Your Payments: Ensure you’re keeping detailed records of all transactions on these platforms. This will help you verify accuracy and avoid discrepancies.
• Revisit Your Accounting Practices: If you’re not already using accounting software, now is the time to invest in one that integrates with these platforms for seamless tracking.
• Seek Professional Advice: Consult with a tax professional to understand how these changes affect your tax obligations and ensure compliance.

State-Level Overtime and Minimum Wage Changes

Labor laws are evolving at the state level, with many states implementing new minimum wage rates and overtime rules in 2025. For example, the California minimum wage will increase to $16.50 per hour for all employers. In New York, overtime eligibility thresholds are changing, expanding the number of employees entitled to overtime pay.

Why State-Level Wage Changes Matter:

• These changes can significantly impact your payroll costs and overall budget.
• Non-compliance with labor laws can lead to costly fines and damage your business’s reputation.

What can you do?

• Audit Your Payroll: Review your current wage and hour policies to ensure they align with your state’s requirements.
• Budget for Increases: Anticipate higher payroll costs and adjust your financial planning accordingly.
• Educate Yourself and Your Team: Stay informed about labor laws in your state and train your management team to comply with new regulations.

The Impact of Tariffs on Small Businesses

Tariffs continue to pose challenges for small businesses, especially those relying on imported goods or engaging in international trade. In 2025, new tariffs and adjustments to existing ones could drive up costs for essential supplies and products.

Why Tariff Laws Matter:

• Tariffs can increase the cost of goods, forcing businesses to either absorb the costs or pass them on to customers.
• Unpredictable trade policies make it harder to plan long-term pricing strategies.

What can you do?

• Diversify Your Supply Chain: Reduce dependency on imports by exploring domestic suppliers or alternative markets.
• Review Your Pricing Strategy: Adjust your prices thoughtfully to maintain profitability without alienating your customers.
• Stay Updated: Keep track of trade policy announcements and be ready to adapt your business strategies as needed.

Key Takeaways and Next Steps 

Regulatory changes can feel overwhelming, but proactive planning will keep your business protected. Here’s a quick recap of how to stay ahead:

• Prepare for New Payment Platform Rules: Keep meticulous records, use accounting tools, and consult tax professionals.
• Adapt to State Wage and Overtime Changes: Audit your payroll, plan for increased costs, and stay informed.
• Mitigate Tariff Impacts: Diversify suppliers, adjust pricing strategies, and monitor trade policies.

We’re here to help you navigate these changes with confidence. From compliance guidance to tools and resources tailored for small business owners, we’ve got your back. Let’s tackle 2025 together and set your business up for success!

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Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.