NFIB Weekly News

Stay up to date with the latest National Federation of Independent Business (NFIB) and other small business news. NFIB, founded in 1943, is known as “the voice of small business” because of their credibility with the government and the media.

NFIB Weekly News

Leading the News

NFIB’s Small Business Legal Center continues to answer questions on the ERTC (02/01/2023)

The Employee Retention Tax Credit (ERTC), also called the ERC, continues to be one of the NFIB Small Business Legal Center’s most frequently asked about topics. The ERTC expired in 2021, but there is still time for employers to retroactively claim this tax credit for qualifying wages paid to employees. What is the ERTC?

The ERTC is a direct dollar-for-dollar reduction against the federal employment taxes that employers pay and report on a quarterly basis in their Employer Federal Tax Return (Form 941). A business can claim the credit on qualifying wages paid to employees for any quarter between March 13, 2020 – Sept. 30, 2021.

How do I know if my business qualifies?

There are two general ways a business can qualify for the ERTC:

  1. The business experienced a decline in gross receipts (at least 50% decline for 2020 quarter; at least 20% decline for 2021 quarter) compared to the same quarter in 2019; or
  2. The business experienced a full or partial suspension of business operations due to a government order. This provision also extends to suppliers of a business. If a business can prove its operations were impacted because of the inability to obtain goods or materials from its suppliers, it may qualify for ERTC.

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Business Climate

NFIB Files Amicus Brief Supporting Small Businesses’ Right to Arbitration (01/30/2023)

WASHINGTON, D.C. (Jan. 30, 2023) – NFIB filed an amicus brief in the case Coinbase Inc. v. Abraham Bielski at the U.S. Supreme Court disagreeing with the Ninth Circuit’s ruling, which forces parties to simultaneously litigate arbitrable disputes at the trial court during an arbitrability appeal at the court of appeals. NFIB’s brief argues that the right to arbitrate is fundamentally a “right not to litigate the dispute in a court” and instead to have the dispute resolved through arbitration.

“Small businesses benefit from arbitration as an alternative to litigation, as arbitration allows owners to resolve disputes promptly and efficiently,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “Arbitration is often used by small business owners because it is a more cost-effective option compared to costly litigation. We are hopeful that the Supreme Court will agree and reverse the lower court’s ruling.”

The case concerns arbitration cases under the Federal Arbitration Act (FAA). NFIB filed the amicus brief with the U.S. Chamber of Commerce.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

Wages and Benefits

Ninety-one percent of owners trying to hire report few or no qualified applicants (02/02/2023)

WASHINGTON, D.C. (Feb. 2, 2023) – According to NFIB’s monthly jobs report, 57% of owners reported hiring or trying to hire in January, up two points. Of those hiring or trying to hire, 91% of owners reported few or no qualified applicants for the positions they were trying to fill. Twenty-seven percent of owners reported few qualified applicants for their open positions and 25% reported none.

“The labor shortage continues to be a major concern for small businesses in the New Year as nearly all owners trying to hire are reporting no or few qualified applicants,” said NFIB Chief Economist Bill Dunkelberg. “Small businesses’ sales opportunities are limited because of the staffing shortage but owners continue to make changes in business operations to compensate.”

Forty-five percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up four points from December.

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