• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube
Big Ideas for Small Business logo

Barbara Weltman

Big Ideas for Small Business, Inc.

Whitepaper download

Subscribe and download our eBook, "150+ Tax Deductions for Small Business A to Z."

This field is hidden when viewing the form
Get the:

  • Home
  • About Us
  • Big Ideas For Your Business
    • Idea Of The Day ®
    • SMB Legal
    • SMB Taxes
    • SMB Financial
    • Small Business
    • Newsletter Archive
  • Services
  • Books
  • Blog
  • Multimedia
    • Videos
    • Radio Shows/Podcasts
  • Be a Guest Blogger

Your 2019 Budget

October 23, 2018 / By Barbara Weltman

Your 2019 BudgetNow that we’re in the fourth quarter of 2018, it’s time to nail down your budget for the coming year. Be sure to consider the following projections:

Payroll

Are you planning to give raises? The average pay increase for 2019 is projected to be 3.1% for non-management employees. As the owner, are you giving yourself a pay increase? Be sure to consider the impact on a greater payroll in 2019 on the amount of the qualified business income (QBI) deduction you can take on your 2019 personal tax return.

The percentage for Social Security and Medicare taxes (FICA) remains unchanged for 2019. But payroll taxes will increase due to pay raises, as well as an increase in the Social Security wage base to $132,900 (up from $128,400 in 2018) for companies with employees earning up to or more than this new amount.

If you provide health insurance for your staff, expect to see premium increases of 5% or more. The 5% increase is related to large employers; there are no stats for small businesses.

And workers compensation premiums may change. The good news is that employers in some states, such as New Hampshire, New York, and Washington, could see premiums drop by as much as 5%.

Borrowing

If you have a line of credit or anticipate the need to borrow money in the coming year, don’t overlook the continued increase in interest rates and build it into your budget. The Federal Reserve raised rates in September 2018 to 2.25%, with one more hike expected before year end. But there are three projected rate increases for 2019; the fed funds rate could reach 3% or more next year. This would mean higher interest costs to borrowing money.

Energy costs

Whether it’s your utility bill or what you pay at the pump to gas up your cars and trucks, expect energy costs to be a little higher next year. The government is projecting that the price per gallon of gasoline could average $2.82, versus about $2.76 this year. Keep in mind that states may increase their taxes on gasoline (e.g., Nebraska and Utah have a scheduled increase in 2019 and Missouri is voting on one in the November election).

Travel costs

Traveling on business is likely going to cost more in 2019.  Hotel costs are projected to rise by 3.7% and airfare by 2.6%.

Professional fees

As a result of all the changes made by Tax Cuts and Jobs Act, expect to pay more for accounting services in 2019. And with inflation, rising salaries, and other factors, legal fees likely will also increase. How much will professional fees increase? Who knows.

Bottom line

Projections are only guestimates, but you need to factor in cost increases for your 2019 budget. Getting a head start on this can help you with deciding on your pricing, whether to give year-end bonuses, and other changes you plan to make before year end or in the coming year.

Tags 2019 budget budget cost increases Tax Cuts and Jobs Act

Primary Sidebar

Categories

  • General Business (506)
  • Guest Blog (113)
  • Homepage (22)
  • Small Business (1,002)
  • SMB Financial (328)
  • SMB Legal (66)
  • SMB Taxes (326)

Barbara’s Recent Posts

  • 10 Ideas for Coping with Cash Flow Challenges June 26, 2025
  • 5 Insurance Traps to Avoid June 24, 2025
  • Creating a Feng Shui Office Layout for Your Business June 20, 2025
  • Scaling Your Business by Optimizing Social Media Marketing June 19, 2025
  • The Timeless Value of Business Cards in a Digital World June 18, 2025
  • What Does the Latest IRS Data Book Tell Us? June 17, 2025
  • Business Advice from Famous Dads June 12, 2025
  • How Important Is Higher Education for Small Business Owners June 11, 2025
  • Business Planning in a Period of Uncertainty June 10, 2025
  • 9 Smart Financial Decisions for Business Owners in Retirement June 6, 2025
  • Preview of Tax Changes this Year: Actions to Take Now June 5, 2025
  • Becoming Penniless: What Does this Mean for Your Business? June 3, 2025
Awarded Top 100 Small Business Blog medal (link will open in a new window or tab)
Marquis Who's Who 2023 Badge
Top Small Business Blogs (Link will open in a new window or tab.)
8 Financial blogs small business Owners Need to Read. Invoice home.  (link will open in a new window or tab)
Best Small Business Blog, Expertido.org
Top 50 Small Business Blogs 2018
Best Small Business Blogs
BizHumm Top 100 Business Blog Award to Barbara Weltman
FitsSmallBusiness.com: Award for Best Small Business Blog 2017 (link will open in a new window or tab)
FitsSmallBusiness.com: Award for Best Small Business Blog 2016 (link will open in a new window or tab)

Footer

Big Ideas for Small Business logo

Small business ideas, business tax news and small business consulting from Barbara Weltman to provide business owners with the information they need to succeed. Visit our small business blog, Idea of The Day®, small business books and articles on small business taxes, small business finance and small business legal advice.

Contact Us

[email protected]

(772) 492-9593

gacor maxwin situs slot thailand terpercaya situs slot gacor situs gacor akun pro thailand slot bandar togel terpercaya

Latest Tweets

bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
June 26

AI returns have not yet justified investment mania https://on.ft.com/4l2VApu #smallbusiness #AI #investments

Reply on Twitter 1938364740998140199 Retweet on Twitter 1938364740998140199 Like on Twitter 1938364740998140199 Twitter 1938364740998140199
bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
June 26

10 Ideas for Coping with Cash Flow Challenges https://bit.ly/3ttGBgf #smallbusiness #cashflow #finance

Reply on Twitter 1938337231116087463 Retweet on Twitter 1938337231116087463 Like on Twitter 1938337231116087463 1 Twitter 1938337231116087463
bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
June 26

Scaling Your Business by Optimizing Social Media Marketing - https://bit.ly/4k3vK3p #smallbusiness #businessgrowth #socialmedia #marketing

Reply on Twitter 1938327669835223524 Retweet on Twitter 1938327669835223524 Like on Twitter 1938327669835223524 Twitter 1938327669835223524
Load More

Copyright © 2008–2025 Big Ideas for Small Business, Inc  |  Designed by Hudson Fusion

  • Privacy Policy
  • Sitemap