July 7, 2023
Hi readers! It’s been a joy curating this newsletter for the past three years, but sadly this will be my last send as I’m leaving my role to pursue writing. Rest assured you’ll be in great hands with the Gusto team. As always, thank you for reading and being a part of our community. ‘Till next time!
New law protects pregnant workers
The Pregnant Workers Fairness Act, a federal law designed to protect pregnant people in the workplace, went into effect on June 27. Data shows that 70% of all pregnant people in the U.S. are pregnant while on the job. That means this law doesn’t just have the power to help keep pregnant workers safer and more comfortable at work—it can also help women remain in the workforce by giving them more support during a major life change.
So, what does this mean as an employer? If you have 15 or more employees, you’re legally required to provide reasonable accommodation for your pregnant employees, as well as those recovering from childbirth or pumping breast milk at work. For example, pregnant workers may need more frequent breaks throughout the day or more time off for doctor’s appointments. Get more information about the law and what it means for your business’s employee policies from the U.S. Equal Employment Opportunity Commission, Axios, and Forbes.
Banks raise lending requirements for small businesses
Rising interest rates coupled with the threat of a recession have put more pressure on banks—and they’re tightening their lending requirements as a result. Research shows that a majority of domestic banks across the country have raised their lending standards in 2023.
In addition to asking businesses for more financial documentation, some banks are also asking for more collateral or higher down payments on loans. Other banks are raising their credit requirements or digging deeper into a business’s profit margins and cash flow fluctuations. Many small businesses that rely on banks for business lines of credit and term loans are struggling to increase their credit lines or get approved for additional financing. Read more from the Wall Street Journal.
The good news, however, is that banks aren’t your only option for financing. Here are seven small business financing options to consider, and here’s Gusto’s comprehensive guide to getting more money for your operation.
6 steps to create a compensation model
As an employer, it’s crucial to use a thoughtful compensation model to guide your payment strategy. A compensation model doesn’t just keep you compliant with employment laws, it also helps you prioritize equity, consistency, and employee satisfaction in your compensation package.
Whether you want to revise your compensation model or create one for the first time, we’ve got you covered. This helpful blog post breaks down exactly what your compensation model should include and how to build one that works for your business.
E-filing taxes in 2024—mandatory or optional?
It’s never too early to get prepared for tax season, especially when you have to account for new tax filing regulations from the Internal Revenue Service (IRS). The latest: Starting January 1, 2024, businesses that file at least 10 tax returns or statements per year will be required to submit them electronically instead of by mail.
This is a huge change from the previous regulation, which only required businesses with 250 or more returns of one type to e-file. The new requirement is designed to streamline the tax review process for IRS employees, allowing them to make their way through the enormous paper backlog from the last several years.
To learn more about what constitutes a tax return and what the penalty is if you don’t comply, read our latest blog post.
Read with Gusto
Hey, Talk Shop readers. Caleb here. Remember quiet quitting? Well, forget it. People are loud quitting now. What’s loud quitting? Gallup says it’s “an employee who is not only actively disengaged with their work but actively engaged in sabotage,” and that’s something. Imagine an employee who has decided to deliberately work against their employer. Something real bad had to have happened, and simply getting rid of that person might not fix the problem.
- I recently wrote about pot at work in my On the Margins newsletter. A few years ago, this may have been considered a provocative subject. But when so many states have legalized marijuana for both recreational and medical purposes, it’s suddenly a very practical subject. Obviously employers can have a no-tolerance policy if that’s what’s best for the business. But there’s also a risk that a strict policy would mean letting go of much-needed employees who violate it. Tread carefully.
- Why men can feel alone and unhappy and still be labeled “successful.”
- Audubon photography award winners.
- “It’s fun to watch somebody else play with their money while you’re sitting on your couch drinking a beer.”
Fresh from Gusto
- 10 Real-Life Examples of Company Culture Statements to Inspire and Guide You
- A Guide to California’s New Employment Credit (NEC)
- The Employer’s Guide to Illinois Mandatory Paid Leave
- What You Need to Know About Florida’s R&D Tax Credit
JUL 12: Making the Most of Remote + Hybrid Work (LinkedIn Live)
Want to build a high-performing remote or hybrid work culture? Join our LinkedIn Live on Wednesday, July 12, at 10am PT, moderated by HR expert and leader Dan Space. Learn the secrets of top remote and hybrid businesses—based on data-backed insights from Gusto. RSVP to attend here.
Want more news and resources? Check out past editions in our archive.