November 11, 2022
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Tips for starting a business as a veteran
Happy Veterans Day! Did you know veteran-owned businesses make up almost 6% of all U.S. businesses? And their segment is fast growing. A recent Gusto report shows that the number of new business owners who are veterans doubled from 2019 to 2021. These business owners are responsible for over $177 billion in annual payroll and employ almost 4 million employees.
Despite those impressive stats, veterans face unique challenges when it comes to starting and growing their businesses. Not only do many veterans struggle to transition back to non-military life, many also have a hard time building business credit and getting financing to bring their ideas to life. Fortunately, there are plenty of resources—like educational tools, community groups, and veteran grants—designed to support and uplift veteran entrepreneurs and business owners. Learn about 16 of those helpful resources right now on our blog.
Changes ahead for worker classification?
The U.S. Department of Labor has proposed a rule that would make it harder to treat workers as independent contractors. The new proposal uses a six-factor “economic realities” test to determine whether a) a worker depends on the employer for work (and is therefore considered an employee) or b) a worker is in business for themselves (and therefore a contractor).
Tomato / tomah-to, right? Not exactly. It’s really important to classify workers correctly because employees are entitled to certain protections under the Fair Labor Standards Act. For instance, employers typically have to withhold and file payroll taxes, offer health care, and provide overtime pay for workers who qualify as employees.
Not sure if you’re classifying correctly? You can check out this article on the differences between employees vs. contractors. The new economic reality test will look at:
- Opportunity for profit or loss
- Investments by the worker and employer
- Permanence of the worker’s job
- Degree of control the company has over the worker
- Whether the work performed is an integral part of the employer’s business
- Skill and initiative
The Labor Department also says it may consider “additional factors” when determining a worker’s classification. Employers and employees can comment on the proposal until November 28. You can submit comments electronically here (search for “Employee or Independent Contractor Classification under the Fair Labor Standards Act”) or mail them to:
Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor
Room S-3502, 200 Constitution Avenue NW
Washington, DC 20210
How to use retirement benefits to retain top talent
Hiring qualified candidates is harder than ever, which is why it’s crucial to continue prioritizing your employees’ happiness and security. There are endless solutions for raising employee retention rates—from introducing schedule flexibility to providing regular positive feedback—but the latest research from Gusto suggests that retirement benefits can make a big impact on employee satisfaction.
Here are two key findings:
- On Gusto’s platform, workers are on average 40% less likely to leave in the first year when they’re offered retirement benefits.
- A 401(k) plan can lead to annual cost savings of more than $100,000 in reduced employee turnover costs alone—that’s a two times return on the initial costs of offering a 401(k).
Read our full report to learn more about the benefits of offering a 401(k)—to both your employees’ well-being and your business’s bottom line.
From our Partners
Get ChartHop’s Total Compensation Quick Start Guide
“Show me the money!” is no longer the default. You need to go beyond salary to create a total compensation package that meets the needs of your workforce and your business. Download ChartHop’s quick start guide for 5 steps to success.
Global Entrepreneur Week with Bench
Did you know that November 14–20 marks Global Entrepreneur Week? To celebrate entrepreneurs like you, our partner Bench is offering free webinars, resources, and exclusive discounts that will help you grow your business. Learn more here.
Watchlist
ONDEMAND: Welcome to Gusto’s People Platform
If your company is new to Gusto—or if you’re a first-time admin—this webinar is for you. Watch our on-demand tour of Gusto’s People Platform at your convenience for helpful post-payroll tutorials, feature and integration highlights, as well as a guide to navigating Gusto’s resource library. Watch now.
THROUGH NOV 14: Verizon Small Business Digital Ready
As digitization increases across all industries, business owners need to be ready to adapt and adopt the right tools. That’s why Verizon is hosting an online curriculum called Digital Ready to give small business owners more resources to succeed in a digital world. The program includes group mentoring and coaching, networking, learning modules, and $10,000 grant opportunities. Applications are due Nov. 14. To find out how to apply, learn more here.
NOV 15: The Top U.S. Tax Questions Entrepreneurs Should Know the Answers To
The end of the year is approaching—which means tax season is right around the corner. Hosted by Bench, this webinar helps you brush up on your tax basics and get ahead on your tax prep. You’ll get expert answers to common questions on everything from S corp benefits and estimated taxes to paying yourself as a business owner and taking the right tax deductions. Register here.
Find the latest relief options in our Small Business Relief Finder.
Want more news and resources? Check out past editions in our archive.
