Small Businesses’ Most Wanted Reform
Advocacy has identified priority federal agency rules for rescission, withdrawal, or modification to reduce the regulatory burden on small businesses. This list is based on conversations with thousands of American small businesses in need of regulatory relief. If implemented, the associated deregulatory actions could save small businesses over $150 billion in compliance costs. Advocacy is actively engaging with the respective agencies on the small business impacts of each rule and advancing deregulatory changes for small businesses.
Form 941 Employer’s Quarterly Federal Tax Return
Internal Revenue Service
Small employers must fill out Form 941 quarterly to report federal income tax withheld, along with Social Security and Medicare taxes, to determine their payroll tax liability for the quarter. Annual reporting instead of quarterly would save every small business employer about $2,000 per year.
Potential Small Business Cost Savings: $90 billion
Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings
Occupational Safety and Health Administration
The 2024 rule is not yet finalized but would require employers to create a plan to evaluate and control heat hazards in their workplace. OSHA would impose an often nonsensical one-size-fits-all standard whenever employees work in temperatures above 80 degrees.
Potential Small Business Cost Savings: $56.5 billion
Procedures for Chemical Risk Evaluation under the Toxic Substances Control Act (TSCA)
U.S. Environmental Protection Agency
The 2024 rule would expand the scope of risk evaluation and impose duplicative compliance burdens by including chemical exposure pathways otherwise covered by other federal statutes. It further increases compliance costs by making risk determinations with little regard for the conditions of use of the chemical.
Potential Small Business Cost Savings: $10 billion
Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees
U.S. Department of Labor
This 2024 rule is a reprise of the Obama administration’s “Overtime Rule.” Much like that rule, this one requires a staggering amount of paperwork from small employers in timekeeping for millions of salaried employees. It would likely reduce take-home pay for employees.
Potential Small Business Cost Savings: $9.5 billion
Employee or Independent Contractor Classification Under the Fair Labor Standards Act
U.S. Department of Labor
The 2024 rule would force millions of independent contractors — the smallest of small businesses — into employee status. Doing so would take away flexible work arrangements while saddling small businesses with new payroll costs, recordkeeping, and litigation risks.
Potential Small Business Cost Savings: $1.4 billion
Revised Definition of Waters of the United States
U.S. Environmental Protection Agency
In revising this 2024 rule, the Trump administration will reduce EPA overreach and provide landowners with simple, clear guidelines as to which waters are subject to the more stringent regulatory requirements associated with “Waters of the United States.”
Potential Small Business Cost Savings: $1.1 billion
Certificates of Compliance
U.S. Consumer Product Safety Commission
The final rule from early January 2025 creates a reporting system that is error-prone and poorly integrated with customs requirements.
Potential Small Business Cost Savings: $261.5 million
Medicare and Medicaid Programs; Minimum Staffing Standards for Long-Term Care Facilities and Medicaid Institutional Payment Transparency Reporting
Centers for Medicare & Medicaid Services
At a time when innovation offers opportunities for facilities to reduce staffing and costs, the 2024 rule would mandate staff increases over time. Facilities unable to meet the new expenses would close, with many elderly residents left without care.
Potential Small Business Cost Savings: $12.4 billion
Nondiscrimination on the Basis of Disability; Accessibility of Web Information and Services of State and Local Government Entities
U.S. Department of Justice
The 2024 final rule requires small government entities to redesign their websites according to federal requirements.
Potential Small Business Cost Savings: $5.7 million
