Proposed Legislation Impacting Small Business
Two very favorable bi-partisan measures have been introduced. The Small Business Owners’ Tax Simplification Act of 2019 (H.R. 3717) would, among other things, align estimated tax payments with calendar quarters, allow self-employed individuals to participate in cafeteria plans and deduct health insurance in figuring self-employment tax, and specify that voluntary withholding agreements, training, and group discount programs would have no effect on worker classification. S. 172 would delay the reimposition of the annual fee on health insurance providers until after 2021 (a fee that’s effectively borne by small businesses through higher premiums). Without this measure, the higher fee will go into effect in 2020.