January 20, 2023: IRS Delays Its E-Commerce Reporting Requirement
January 20, 2023
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Small business applications surged in 2022
Despite the economic uncertainty of the past few years—not to mention growing fears about a recession—the spirit of entrepreneurship is still strong. According to the Census Bureau’s latest data, an estimated five million new businesses were started in 2022, a 42% increase since pre-pandemic levels.
So, who are these business owners? More and more, women and entrepreneurs of color are leading the charge. Data from Gusto found that in 2021, nearly half (49%) of new business owners were women, up 20% since before the pandemic. The number of Black entrepreneurs has also increased from 3% in 2019 to 9% in 2021. Gusto Economist Luke Pardue gives his take on what to expect from entrepreneurs going forward.
IRS delays e-commerce reporting requirement
If you use digital payment platforms like PayPal and Venmo as part of your business, there’s some news you should know about. The IRS is announcing a delay to one of its provisions from the American Rescue Plan of 2021. The provision required e-commerce and third-party payment platforms like Venmo, PayPal, and Etsy to issue 1099-K tax forms to individuals with transactions of more than $600.
Now, though, the IRS is delaying that reporting requirement for one year. For the 2022 tax season, e-commerce and third-party payment platforms will only have to issue 1099-K forms to entities and individuals that had $20,000 or more in transactions. The $600 reporting threshold is now effective for transactions recorded after December 31, 2022, instead of all transactions in 2022.
As a taxpayer, this is good news: Now you have more time to talk to your business accountant and understand how this $600 reporting threshold might apply to you. Read more about the delay on CNBC here.
Save your spot in the American Small Business Growth Program
Silver Lining, in partnership with Wells Fargo, is offering Gusto customers exclusive access to spots in the American Small Business Growth Program, a $4,000 program, at a pay-what-you-can rate. In the program, you’ll build an Action Plan to find new customers and grow your business, and then get a full year of support to help you actually implement that plan and hit your goals. Support includes one-on-one strategy calls, 24-7 concierge support, a global community of fellow SMBs, and more.
Eligibility criteria include the following:
- Owner / operator of a U.S.-based SMB
- Any industry
- Under 10 employees (solopreneurs welcome)
- Citizenship or other official documentation not required—all are welcome
- Have been in business for 1 year or more
- The business should be your full-time career (as opposed to a part-time hustle)
Apply now at www.smallbizsilverlining.com/wellsfargo.
Read with Gusto
Hey, Talk Shop subscribers, I’m Caleb Newquist, Editor-at-Large at Gusto. In this new section of the newsletter, you’ll find a handful of articles curated by me. Some will be interesting, some will be funny, some will be off-the-wall. The idea is to provide content that inspires, delights, or just causes you to think a little bit. We hope you find something enjoyable each time.
- There’s a strong case to be optimistic about America’s future.
- Indulge your weird obsessions.
- Slang from the 1910s.
- Two Indian men visited all seven continents in under 4 days to break world record
- It’s okay to drink coffee on an empty stomach.
Fresh from Gusto (and friends)
Bonusly’s Toolkit for Building Stronger Teams in 2023
Download this free toolkit to improve your employee experience and start building stronger, more resilient teams today.
- We’re Supercharging Our Customer Support Tools – Getting You the Answers You Need, Faster Than Ever
- How Does Mileage Reimbursement Work?
- How Do I Set Up a QSEHRA (Small Business HRA)? A 10-Step Guide
- This S Corporation Tax Calculator Could Help You Save Over $5,000 in Taxes
JAN 24: Navigating Tax Season 2023
Tax season is here—and it’s time to get prepared. Hosted by Bench, this webinar will share important tools and tips for filing your business taxes on time and with minimal stress. You’ll learn which updates affect your business income taxes this year, discover the best practices for staying organized and filing efficiently, and get the chance to ask a Senior Tax Advisor questions on common tax conundrums and more. Register here.
FEB 9: How to Implement a Transparency-First Compensation Strategy
One of the best ways to increase employee retention and recruit new talent is to revise your compensation plan, starting with making it more transparent. Hosted by 15Five, Gusto, and Pave, this webinar stresses the importance of creating a transparency-first compensation strategy. You’ll learn how transparent compensation benefits your bottom line, how to build a compensation plan that aligns with your values, how to communicate compensation information to job candidates and employees, and how to conduct pay equity analyses. Register here.
FEB 13: Metrics that Matter: Protect, Grow, and Create Value for Your Business
As a business owner, you know data is invaluable to your operation—but which data points actually matter? And how can you use them to get ahead? That’s what this webinar aims to answer. Experts from Oracle NetSuite and Entrepreneur will discuss how entrepreneurs can sharpen their business strategies and invest in longevity. You’ll learn how to use metrics to protect what you’ve built, accurately measure risk, and create long-term value with your business. Register here.
REPLAY: How to Save Your Business Thousands with the R&D Tax CreditIf you’re improving your business’s offerings or processes using data, you may qualify for the Research & Development Tax Credit (R&D). The tax credit, which covers activities like product testing and quality control, could reduce your payroll taxes by up to $250,000 a year—and your income tax by an unlimited amount. In this webinar, Gusto’s Head of R&D Tax Credits breaks down everything you need to know, including what it takes to qualify for the credit and how to claim it. Watch it here in case you missed it.
Want more news and resources? Check out past editions in our archive.