Posted at: 09/30/2013 6:19 PM
By: Berkeley Brean
Threats, demands and your tax dollars. The battle rages in Washington with neither side willing to back down at this point.
Last minute efforts to reach a deal failed Monday afternoon. Right now, your mail will still be delivered and checks for federal benefits will continue. But more than 800,000 federal workers will be forced to take a pay cut, due to furloughs. That includes people who approve passports, visas, gun permits and federal mortgages. All of those services could stop Tuesday.
People in the Labor Department will also be impacted, that includes people whose jobs are to monitor the job market will also be forced to take a furlough. The Labor Department says it will not have enough people on staff to issue a jobs report. All national parks would close and anyone looking to get a federal backed loan, like homeowners and small businesses would also see a delay.
The shutdown could hurt people who are suffering and trying to appeal for social security benefits. The last time it happened their waiting period almost tripled.
A lot of small businesses would be impacted. A lot of them deal with Paychex. Paychex says it is telling its clients that they're going to get hit in three places. The government may not accept their small business loan applications. The government may stop process the loan applications already in the system. There could be issues with taxes and the IRS.
Mike Trabold, Paychex, said, “The IRS has already told us clearly that people are going to have to continue paying their taxes, their withhold taxes if they're a small business. If you're paying your taxes on a quarterly basis, sometimes employers are getting refunds if they overpay their withholding taxes in a particular period. That refund process most likely will be delayed as well.”
Small business loans from the federal government can be the life-blood of small businesses.