Image provided by: University of Oregon Libraries; Eugene, OR
About East Oregonian : E.O. (Pendleton, OR) 1888-current | View Entire Issue (Jan. 4, 2020)
BUSINESS Saturday, January 4, 2020 Small businesses will have plenty of changes to deal with in 2020 By JOYCE M. ROSENBERG Associated Press NEW YORK — Small business owners have plenty of changes to deal with as 2020 begins — higher labor costs for many companies, and some owners will dis- cover that they have to comply with new laws that aren’t on the books in their own states. As of Jan. 1, there are higher minimum wages in a quarter of the states, and new federal overtime rules. The IRS has new W-4 forms owners will need to get used to. Plastic bags are on their way out at stores and other businesses in a growing number of places around the country. And California has new laws on freelancers and consumer privacy that can affect out- of-state companies. A look at a handful of the 2020 changes in federal, state and local laws and regulations: Minimum wages go up The minimum wage is higher in 13 states as of Jan. 1, including New York, where the minimum rose Dec. 31, 2019. The increases in California, Illinois, Maryland, Massachusetts, New Jersey and New York are steps toward an eventual $15 minimum approved by state legislatures. Increases are planned later in the year in states, including Connecticut, New York, Oregon and Washing- ton, D.C.; some counties and cities are raising their minimums as well. While many businesses pay hourly workers above the minimum, when there’s an increase in the wage, many owners give all their staffers a raise to stay com- petitive amid a tight labor market. New overtime rules The Labor Department’s long-awaited revamp of its overtime rules are now in effect, giving an estimated 1.3 million workers a raise. Workers earning under $684 per week or $35,568 must now be paid over- time, up from the previous threshold of $455 per week or $23,660 annually. Retailers, restaurants and manufacturers are most likely to be affected, with shift supervisors and assis- tant managers among the positions that must now be paid overtime after 40 hours a week. While all employers are subject to the rules, the higher threshold AP Photo/J. Scott Applewhite Speaker of the House Nancy Pelosi, D-Calif., joins fellow Democrats and activists seeking better pay as the House approved legislation to raise the federal minimum wage for the first time in a decade — to $15 an hour, at the Capitol in Washington. is likely to have the greatest impact on small companies that lack the revenue cush- ion that larger businesses have against higher costs. Employers are expected to limit the hours of some workers so they don’t incur overtime, or raise some staffers’ pay to a level above the threshold, making them exempt from the new rules. More information about the overtime rules can be found on the Labor Depart- ment’s website, www. d ol .g ov/a g e n c i e s / w h d / overtime/2019/index. New W-4 forms The IRS has issued new W-4 forms for 2020, chang- ing the way tax is withheld from employees’ pay. The new forms reflect changes required by the tax law that went into effect in late 2017; they do away with the allowances long used to cal- culate how much money should be withheld from paychecks. Instead, the new forms use information that can be found on employees’ tax returns. Current employees don’t need to fill out new W-4 forms, but new staffers or employees who want to change their withholding do need to complete them. The IRS has created a calcula- tor to help small businesses compute withholding for the new forms if they don’t use automated payroll soft- ware or providers. It can be found on the IRS website, www.irs.gov. Search for “new Form W-4.” Plastic bag bans A growing number of states, counties and cities have passed legislation pro- hibiting or restricting retail- ers and other businesses from giving customers sin- gle-use plastic bags to carry purchases. Oregon’s ban went into effect Jan. 1, and Maine, New York state and Vermont have similar pro- hibitions going into effect later in the year. There are variations among the laws and some exceptions — in New York, for example, pharmacies are exempt if the purchase is for a prescription drug, and restaurants can give diners bags for takeout food. Some of the laws also require a 5 cent charge if a customer wants a paper bag. While the laws have been passed out of environmen- tal concerns, small retail- ers might see a benefit from not having to buy and sup- ply plastic bags. And those that sell reusable shopping tote bags could get a small revenue uptick. California change A new California law gives consumers more con- trol over the personal infor- mation companies collect and share with other busi- nesses. While the law aims to exempt very small com- panies, those that do busi- ness with California resi- dents, including out-of-state firms, can find themselves required to comply. Under the law, compa- nies must be able to tell con- sumers what information they have and what they do with it. Consumers must have the option to have their information deleted from companies’ computer sys- tems. Businesses that han- dle information collected by others — for example, payment processors — can also find themselves subject to the law. Companies are subject to the law if they have world- wide revenue above $25 million, collect or receive the personal information of 50,000 or more Cali- fornia consumers, house- holds or electronic devices; or those who get at least half their revenue from selling personal informa- tion. Small businesses can reach the 50,000 threshold for collecting or receiving information — an individ- ual who has a phone, tab- let, PC at home and one at work counts as four users, not one. A separate law puts strict limits on who can work as an independent contrac- tor or freelancer. The law is aimed at ensuring that workers in the gig economy, like Uber and Lyft driv- ers, get the protections that labor laws give employees. It will force business own- ers to decide whether to hire these workers as employees, even for temporary assign- ments, or look for help in other states. The law also affects out- of-state companies if they have been using indepen- dent contractors or free- lancers in California. Changes in California laws are also noteworthy because the state can be a trailblazer when it comes to employee, consumer and environmental issues. The nation’s first laws requiring paid sick leave for workers and banning plastic bags were enacted in California. By ERIC TEGETHOFF Oregon Public News Service Public News Service Photo A7 New hotel going up in Boardman was the result of collaboration By JADE MCDOWELL East Oregonian New Year’s financial resolutions PORTLAND — One of the most common New Year’s resolutions is becom- ing more physically fit. Financial experts say folks also should consider becom- ing financially fit in 2020. Lynn Heider, vice presi- dent for public relations with the Northwest Credit Union Association, which rep- resents more than 170 credit unions in the region, said the first key to better finances is saving. She notes that experts recommend saving enough money to cover liv- ing expenses for three to six months as a cushion in case of an emergency, such as job loss or prolonged illness. “I know that sounds daunting, but you have to start, and once you start, it starts to build up pretty quickly,” she said. “So some ways to do that are to sit down and determine how much money you’re spending every month and how much of that you really need.” Heider suggests ditching unnecessary purchases and considering ways to save on other expenses, such as util- ity and phone bills. For instance, when choos- East Oregonian BOARDMAN — Driv- ers on Interstate 84 may have spotted construction for a new hotel in Board- man recently. The 64-room Boardman Sleep Inn Hotel is expected to open this spring. It is located on the south side of I-84 just off exit 164. The project benefitted from technical assistance, financing, market analy- sis and other help through a collaboration of Eastern Oregon University Small Business Development Center, Community Bank, the Small Business Admin- istration, the city of Board- man, Umatilla Electric Cooperative, the Morrow Development Corporation and the Port of Morrow. “This shows what can happen when all of your economic development partners work together,” said Greg Smith, director of the EOU-SBDC. According to a news release from the SBDC, the hotel is expected to cre- ate about 30 new jobs in Boardman once complete. Smith said the project will also “help spur retail and commercial development” around it. “I think in the next four to five years, people will see an economic boom in those sectors in Board- man,” he said. In a news release, EOU president Tom Insko and business college dean Edward Henninger said the project was an example of the positive impact that the college’s Small Business Development Center was having on the region. The center gives assistance to entrepreneurs in the form of confidential advice, financial help, trainings, government contract assis- tance and more. “This announcement represents yet another proud moment for EOU and the SBDC in our shared quest to serve as an economic engine for our region while provid- ing opportunities for our students to gain hands-on learning experiences through internships, pro- fessional development and real-world projects,” Hen- ninger said. BRIEFLY EO Media Group file photo Starting next week, Alaska Airlines will add two new dai- ly direct flights to Los Angeles and San Diego from Red- mond airport. U.S. 30-year mortgage rate loan at 3.72% WASHINGTON — U.S. long-term mortgage rates declined slightly this week, remaining close to the historically low levels where they have hovered for the past two months. Mortgage buyer Fred- die Mac said Thursday the average rate for a 30-year fixed-rate mortgage eased to 3.72% from 3.74% last week. By contrast, the benchmark rate stood at 4.51% a year ago. The average rate on a 15-year mortgage slipped to 3.16% from 3.19%. More positive eco- nomic data and improved housing market senti- ment have brought sta- bility in mortgage rates, Freddie Mac chief econ- omist Sam Khater said. For all of 2019, the 30-year loan averaged 3.9%, the fourth-lowest annual rate since Freddie Mac began tracking it in 1971, accord- ing to the company. Volatile interest rates earlier last year caused a slowdown in the hous- ing market, Khater noted. Low mortgage rates and a strong job market are “set- ting the stage for a contin- ued rise in home sales and home prices,” he said. Alaska Airlines to add flights from Redmond Airport BEND — Starting next week, Alaska Airlines will add two new daily direct flights to Los Angeles and San Diego from the Red- mond airport, according to a statement provided by the airport administration. Flights to San Diego on Alaska will be the 10th nonstop flight from Redmond. The airline also announced it would increase daily service to San Francisco starting March 19. With that addi- tion, there will be a total of a dozen direct flights per day from Redmond on Alaska Airlines. Alaska has flights from Redmond direct to Port- land and Seattle, the air- port stated in a press release. The new routes will be served by Alaska’s 76-seat Embraer 175 jets, the company said in the statement. — EO Media Group and wire services Follow us on Facebook! Financial experts say about 50% of your budget should go to rent and utilities, 20% toward financial goals and 30% to flexible expenses, such as entertainment. ing the gym membership key to your physical-fitness goals, consider what parts of the gym you actually use. Large gyms with pools and racquetball courts may be enticing, but unnecessary if you usually stick to the treadmill and weight room. Heider said people should become fans of automation, setting up auto-pay for rent and bills to avoid late fees and for peace of mind. She says people should write down budgets and eval- uate them with the 50-20-30 rule. The rule says 50% of your income should go to essentials, such as rent and utilities; 20% toward per- sonal financial goals, such as savings and paying off debt; and 30% toward flexi- ble expenses, such as enter- tainment and eating out. “This will be a way for you to pay off debt, to save money and to sort of go on a financial diet as the new year starts,” says Heider. Heider adds the caveat that the Northwest’s high cost of housing means more money could go toward that expense. She encourages people to look into their local, not-for-profit credit union. PACIFIC NORTHWEST ALASKA, WASHINGTON, OREGON, IDAHO, MONTANA REACH 3 million Pacific Northwesterners with just One Call! n PNDC CLASSIFIED - Daily Newspapers 29 newspapers - 1,187,980 circulation Number of words: 25 l Extra word cost: $10 Cost: $540 (Runs 3 consecutive days including wkds.) n PNDN 2x2 DISPLAY - Daily Newspapers 27 newspapers - 1,016,864 circulation Size: 2x2 (3.25”x2”) Cost: 1x 2x2: $1,050 More info: Cecelia@cnpa.com or call (916) 288-6011
