Even after fiscal cliff deal, small businesses could face new taxes
Updated On: Jan 08 2013 06:15:51 AM CST
The "fiscal cliff" may be resolved, but tax planners predict the worst may be yet to come for small businesses. And until that gets resolved, many companies are holding-off on hiring.
In Allentown, the Hamilton Family Diner is a slice of Americana.
"We serve the traditional American-style food," said owner Nick Karidas. "We do a little bit of everything, but everything is fresh and made to order."
Roughly 35 people work there.
"Some part-timers, some full-timers," said Karidas, who would like to hire more, but a lot of that depends on Congress.
"Everybody wants to know, 'How does it affect me and what do we need to do now?'", said Rachel Wehr, a small business accountant with Lone Wolf Solutions in Center Valley.
According to Wehr, many of her clients are holding off on expanding because Congress could still overhaul the tax code later this year.
"Whether it's depreciation rules, whether it's what they can deduct and what they can't," Wehr said of the possible changes. "There could be a lot of loopholes that will be closing up."
For now, Wehr said businesses are scrambling to adjust to new payroll taxes and planning for more government oversight.
"The IRS is going to be auditing a whole lot more because they need to find that money somewhere," she said.
Back at the "Ham Fam," on the menu is a waiting game.
"We'll see how it goes," said Karidas. "Everything depends on the first couple of months, to see what kind of effect we're going to have as far as when they pass all the bills and everything."
Those new payroll taxes won't cost your employer anything extra, but they will cost you. Someone making $50,000 a year is now paying about $1,000 extra a year.
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