Small Businesses Expect Tax Complexity to Increase
The new 2018 Small Business Taxation Survey conducted by the National Small Business Association shows that the administrative burden associated with meeting tax obligations continues to far outpace the financial burden, and complexity is expected to increase for 2018.
The survey also asked about the federal Tax Cuts and Jobs Act, and how the recently-passed tax reform law will impact small business.
“Small businesses have a great deal of confusion and insecurity in terms of how the new tax law will really impact them,” says NSBA President Todd McCracken.
Time Not Well-Spent
According to the survey, one-third of small businesses report spending more than 40 hours each year on federal taxes, and the majority spend more than $1,000 each year on the administration alone of federal taxes.
Payroll taxes and income taxes were ranked the top two most burdensome taxes for small businesses.
Among those small businesses that collect sales taxes, one-in-three report spending one full work week and more each year on sales tax.
More than half of small firms with five or more employees pay an outside firm to prepare their payroll.
“The majority of small-business owners say federal taxes have a significant-to-moderate impact on the day-to-day operation of their business,” said NSBA chair Cynthia Kay of Cynthia Kay and Co.
“Small businesses spend a great deal of time and resources that could be far better utilized growing their companies.”
Don’t miss the Connecticut Tax Conference, Thursday, June 7, from 8:30 am-12:30 pm in Farmington.
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