Small Business Payroll Tax Cut Possible Impact

Small business owners voiced their opinions to the White House after a proposed payroll tax cut was presented. According to the U.S. Small Business Administration, small businesses account for 99.7% of employer firms. Within the last two decades, small businesses have been responsible for more than half of the country's job growth.

So what did these entrepreneurs have to say? They concentrated on three topics:

• Incentives for hiring and job growth
• More information about how health care reform will affect small businesses
• Solutions for real estate crisis and getting foreclosures sold more quickly

Politics aside, think of the impact that a 50% deduction in payroll taxes might have on your bottom line. Would companies feel less hesitant to hire, and possibly resume their leading place in the hiring arena?

What about investments? There are ways to recoup losses for companies, however, the companies may not feel comfortable, given recent economic reports. 

Possible Impact 

So what could small businesses use their payroll tax cuts on?

• Sales - More money to hire salespeople, improve profits, and ultimately business growth.
• Marketing - Let more people know about their businesses and broaden their areas of operation.
• Technology - Evaluate present processes that could be replaced by technology, and invest in technology that will surely improve their productivity and operations overall. 
• Internet Marketing - Research the benefits that taking their brick and mortars online could have on their bottom line. 

In what ways would a payroll tax cut impact your business?