The 2025 Utah legislative session introduced several new laws and regulations that impact small business owners. From tax reductions to regulatory changes, business owners must understand these updates to remain compliant and take advantage of potential benefits.
This guide breaks down the most important legislative changes and what small business owners in Utah should do next.
1. Reduction in Individual Income Tax Rates
Overview
A new tax reform measure has lowered Utah’s individual income tax rate, which affects small business owners who operate as pass-through entities. These businesses are taxed at the individual income tax rate rather than the corporate rate.
Key Changes
- The individual income tax rate decreased from 4.55% to 4.50%.
- New nonrefundable tax credits were introduced for employer-provided child care and dependents under five years old.
What Business Owners Should Do
- Consult a tax professional to understand how the new tax rate and available credits impact business finances.
- Consider offering employer-provided child care to take advantage of new tax credits.
2. Amendments to Employer Liability Provisions
Overview
A proposed bill initially sought to expand employer liability when hiring individuals with criminal records. However, after pushback from business groups, the final version removed these provisions.
Key Changes
- The final bill does not impose additional liabilities on employers who hire individuals with criminal backgrounds.
What Business Owners Should Do
- Review hiring policies to ensure compliance with existing state and federal laws.
- Continue implementing fair hiring practices without concern for additional liability from this legislation.
3. Regulation of Earned Wage Access Services
Overview
A new law was passed to regulate Earned Wage Access (EWA) services, which allow employees to access their earned wages before payday. Businesses offering or facilitating these services must now comply with new registration and disclosure requirements.
Key Changes
- EWA providers must register with the state’s Division of Consumer Protection.
- Consumer protections are now mandatory, requiring providers to:
- Clearly disclose fees.
- Obtain consent before making changes.
- Offer at least one no-fee option for accessing earned wages.
What Business Owners Should Do
- Review EWA services to ensure compliance with new state regulations.
- Communicate with employees about any changes to wage access policies.
4. Introduction of the Business and Chancery Court
Overview
Utah has established a Business and Chancery Court to handle complex business disputes. The goal is to provide faster resolutions and specialized legal expertise for business litigation.
Key Changes
- The court will have jurisdiction over high-value commercial disputes (over $300,000) and cases seeking equitable relief.
- It will be based in Salt Lake City but have statewide authority.
What Business Owners Should Do
- Understand that major business disputes may be heard in this new court rather than traditional district courts.
- Consult legal counsel on how this specialized court may impact business litigation strategies.
5. Modifications to Regulatory Oversight
Overview
New legislation introduced expanded oversight mechanisms for state executive agencies. This could impact how businesses interact with regulatory agencies and how regulations are enforced.
Key Changes
- New supervisory measures are in place for agencies that regulate businesses.
What Business Owners Should Do
- Monitor regulatory updates to see if new oversight changes affect compliance obligations.
- Engage with industry groups to stay informed about evolving business regulations.
Final Steps for Utah Small Business Owners
To stay compliant and competitive in 2025, small business owners should:
- Review tax strategies to take advantage of lower rates and new tax credits.
- Ensure hiring policies comply with state laws while maintaining fair employment practices.
- Assess payroll services if offering Earned Wage Access (EWA) to employees.
- Understand the new Business and Chancery Court and how it may impact business litigation.
- Stay updated on regulatory oversight changes that may affect compliance.
By staying informed, business owners can protect their operations, reduce legal risks, and take full advantage of new opportunities.
Need Legal Guidance? Contact Duckworth Legal Group
If you need legal advice on business regulations, employment law, or corporate compliance, our team is ready to assist.
Call us: (801) 882-7444
Email us: info@duckworthlegalgroup.com