After a summer spent getting an earful from vocal constituents, Congress is back in session and grappling with comprehensive health care reform legislation. If President Obama has a bill to sign by the end of the year, it will almost certainly include these three elements that will affect HR pros.
Congress is considering legislation that would require employers with 15 or more workers to provide seven days of paid sick leave per employee per year, an expansion of the FMLA that a coalition of HR and business groups immediately decried.
Training programs are among the first areas to take a hit when the economy falters. If you haven’t scaled back training expenses yet, your boss may soon ask. To examine training programs and avoid eliminating those that do work, ask the following questions:
The tax law contains a break for investing in qualified small business stock (QSBS). If certain requirements are met (e.g., the stock must be held five years), you can exclude (pay no tax on) up to 50% of the gain. The capital gains tax rate for QSBS is 28%, so the effective tax rate is 14% (50% of 28%). And the new economic stimulus law sweetened the deal.
It seems to me that large corporations have a decided edge in optimizing their Web sites for search engines over small business in general and solo practitioners in particular.
Adjust your withholding allowances on Form W-4 if you overestimated the amount of tax you needed to have withheld this year or if you didn't pay enough tax during the year through quarterly installments or income tax withholding.
Older employees who are demoted, not promoted or fired sometimes assume they can win ADEA lawsuits simply by proving they were the oldest employee to suffer their fate. That’s not the case.
Steve Poizner, the California Insurance Commissioner and Republican candidate for governor, recently filed a lawsuit seeking to stop the sale of assets in the State Compensation Insurance Fund (SCIF). He contends efforts by the Legislature and Gov. Arnold Schwarzenegger to use the funds to balance the state budget are unconstitutional.
Research has found that less than 50 percent of start-ups survive four
years, and only 35 percent make it to seven years. Given the grim
economic times, does it make financial sense to launch a business?
Absolutely, say Ed Hess and Charles Goetz, coauthors of So, You Want to Start a Business? 8 Steps to Take Before Making the Leap
Don’t depend on comprehensive health care reform to significantly cut the cost of the health insurance benefits you provide to employees. Many of America’s best companies have found that a few best practices do a remarkably good job of improving employee health and controlling health care expenses. Here are some of the best practices in health benefits used by America’s best employers.
Greening your business is not only one of the latest marketing trends,
but it’s also a smart move, especially during an economic downturn.
Here are three tips to lessen your carbon footprint and save your business some money:
With some well know beltway spin, Mr. Obama somehow
determined that the purchase of this building saved 10 jobs and will soon
create another 10 jobs.I’d love to know
how that actually saved jobs and how it will somehow create 10 more…?
Studies show that most growing businesses plan to maintain or increase
spending on marketing and business development in the months ahead as
the economy recovers. Here are five small business development tips to help you become more competitive in 2010:
The macro economic impact will be significant in the short
term as it is very likely businesses will hoard cash and reduce investment
plans in the near term, which will not help our economy.
The IRS now requires many small business owners to use its Electronic Federal Tax Payment System to deposit employment taxes. Your business must use the electronic method if it has aggregate tax deposits of more than $200,000 ... If your company doesn’t comply, it may be assessed a 10% excise tax for failing to deposit taxes on time—even if the taxes are deposited in a timely manner by other means.
A recent government study showed that the average small business overpaid its taxes by $11,638. That’s sad enough. But sadder still is the fact that the tax code is actually written to favor small businesses like yours.
Author Steven S. Little says that companies that duck the immediate dangers of the economic downturn and
put themselves in a position to recover once
the dust settles will be the ones on top in the end.
A new Tax Court decision could produce a better tax result for many owners of LLCs and partners in LLPs. Strategy: Use a loss from an LLC or LLP to offset other highly taxed income. Previously, it was presumed that such losses usually could be used only to offset income from other “passive” activities. But the new case has opened the door to bigger tax savings.
Have you checked your company’s bulletin boards lately? Do they show the correct, updated federal- and state-law posters? As this week’s new court ruling shows, poster mistakes can actually breathe new life into supposedly dead employment lawsuits …
When it comes to understanding your market segments, government
statistics are among the best available sources of information. Here are some other smart ways to collect valuable customer research:
Communication strategies help managers build productive teams. A recent study says that 40% of managers in the United States are considered “bad bosses” by their employees. Yet most managers assume that their relationships with their employees are running smoothly. Obviously, some of those bosses are wrong …
Customer research is to a growing business what a power cord is to an electrical
appliance — a necessity. Here are five surefire ways to collect valuable research:
Without deadlines,
employees flounder. They can’t be aware of the urgency or priorities of a
project unless their supervisors tell them. Following are four tips to
help supervisors set realistic deadlines for their employees:
After a summer spent getting an earful from vocal constituents, Congress is trying to muster support for—or stop—competing versions of what President Obama now calls health insurance reform. There’s no guarantee that Obama will have a bill to sign before the end of the year. But if he does, it will almost certainly include three elements that will affect comp and benefits pros:
The United States is facing a swine flu outbreak that has caused the government to declare a public health emergency. Recently, the U.S. Centers for Disease Control and Prevention (CDC) published new guidelines to help employers prepare for flu season and prevent the rapid spread of the H1N1 influenza. Here are the CDC's suggestions, plus insight on your risks and obligations as an employer ...
Like most
industries, the business loan alternative industry has continued to mature and
offer different financing potions that are less expensive and have different
requirements for the borrower.
We present a case study on how one smart owner of a growing
business boosted his company’s search engine rankings — and its
customer base — by investing in a search engine optimization copywriting course.
Managers spend a good part of the workday listening to other people. But bear in mind, there’s a big difference between “passive” and “active” listening. In many cases, managers are too busy thinking about their response rather than listening to the employee’s full statement. In a business setting, this lack of attention can result in costly mistakes, wasted time, poor service and management failure.
Are you collecting your maximum tax breaks from the massive economic stimulus law passed earlier this year? The IRS has issued a fact sheet touting the tax perks available to small business owners under the new American Recovery and Reinvestment Act of 2009. Here are eight key provisions:
Say you’re contemplating an investment in a new business venture. It’s somewhat risky, given the current economic conditions, but you may want to help a relative or friend get the business off the ground. Unfortunately, if things don’t pan out, the loss would have limited tax value. Strategy: Invest in Section 1244 stock. That way, as long as certain requirements are met, you can write off up to $100,000 if the business fails.
A survey of small business leaders performed by California-based TriNet Group says employee morale at small businesses was up or holding steady in the second quarter of 2009, according to 75% of respondents.
Have you looked into starting a retirement plan for your small business operation? You’d probably like to help employees salt away some money for the future, but you may have decided most options are too expensive to set up and administer. Strategy: Use a payroll deduction IRA. This is the easiest IRS-approved option available to employers. What’s more, you can set up the program and run it at virtually no cost.
The enhanced Sec. 179 deduction is a tax bonanza for small business owners. You can write off up to $250,000 of new business assets placed in service in tax years beginning in 2009. But remember: The Sec. 179 deduction is limited to the amount of annual taxable income from the business. Strategy: Buy new assets soon and place them in service before Oct. 1. Here's why.
Web sites don’t last forever. Some changes can be accomplished with simple maintenance, but patching can take you only so far. Here are five signs that it’s time to revamp your site.
Ohio ranked among the nation’s most business-friendly states in the Small Business and Entrepreneurship Council’s (SBEC) Business Tax Index for 2009. The SBEC annually assesses the tax climates for business and entrepreneurs in the 50 states and the District of Columbia.
Florida ranked as one of the nation’s business-friendliest states in the Small Business and Entrepreneurship Council’s (SBEC) Business Tax Index for 2009. The SBEC annually assesses the tax climates for business and entrepreneurs in the 50 states and the District of Columbia.
In his latest book, pioneering online marketer Mark Joyner covers some sophisticated concepts, including mathematical
formulas for calculating the return on investment of prospective deals.
His Integration Marketing Growth Strategy
consists of four steps:
Working every day to generate strategic insights is critical to small business development.
It’s also important to avoid these four strategic mistakes when
developing a business development strategy, says Rich Horwath,
president of Strategic Thinking Institute:
Q. I have a small business with 25 employees that rely heavily on email as a communication method with our customers and business partners. We have been struggling with managing our current email system that is running on a server in our office. Should we spend the time and effort to upgrade our server and email software or is a hosted email solution a good alternative? - David B, Philadelphia
The price of admission to today’s marketplace is continual reinvention. Organizations regularly hit “refresh,” or “restart,” so they can develop contingencies before the next crisis hits. But this organizational reinvention can happen only if leaders reinvent themselves. How?
The key to relationship marketing, contends Jay Forte, president of Humanetrics,
is to ask great open-ended questions that get customers to
talk, share, and explain. Forte recommends asking these five questions to improve customer relations:
The Keystone State ranked 29th out of 51 jurisdictions in the Small Business and Entrepreneurship Council’s (SBEC) Business Tax Index for 2009, a score that would have been better if it didn’t have the nation’s highest state corporate tax rate.
New York finished better than just four states in the Small Business and Entrepreneurship Council’s (SBEC) Business Tax Index for 2009. The SBEC annually assesses the tax climates for business and entrepreneurs in the 50 states and the District of Columbia.
Illinois came out better than average in the Small Business and Entrepreneurship Council’s Business Tax Index for 2009, an annual assessment of the tax climate businesses and entrepreneurs face in the 50 states and the District of Columbia. Overall, Illinois ranked 18th on a scale of 1 (least taxed) to 51 (most taxed).
Minnesota finished near the bottom in the Small Business and Entrepreneurship Council’s (SBEC) Business Tax Index for 2009. The only ones ranking lower than Minnesota: New Jersey and the District of Columbia.
California finished better than just three states in the Small Business and Entrepreneurship Council’s (SBEC) Business Tax Index for 2009. The only ones ranking lower than California: Maine, Minnesota, New Jersey and the District of Columbia.
North Carolina finished in the bottom third of states ranked in the Small Business and Entrepreneurship Council’s (SBEC) Business Tax Index for 2009. The Tar Heel State placed 38th overall, well below neighboring South Carolina (11th), Tennessee (13th), Virginia (16th) and Georgia (19th).
New Jersey finished next to last in the Small Business and Entrepreneurship Council’s (SBEC) Business Tax Index for 2009. The SBEC annually assesses the tax climates for business and entrepreneurs in the 50 states and the District of Columbia.
Cutting training willy-nilly just to save money can create more problems than it solves. During economic downturns, companies need efficient, targeted training programs to improve productivity. And effective training positions companies to prosper as the economy recovers. To examine training programs and avoid eliminating those that do work, ask the following questions:
All of a sudden, the retirement nest egg you’ve been building all these years might not be enough. And you probably have less time left to make up for lost ground than most of your other employees. That’s especially true if you haven’t been able to max out on plan contributions in the past. Strategy: Add an “age-weighted” feature to a profit-sharing plan.
According to Dan Adams, president of Advanced Industrial
Marketing, Inc., your prospects should play a vital role in every stage of the business development
marketing process. Here are three suggestions for putting your prospects to
work:
In 5 years all businesses will have a regular strategy to become
apart of the conversation their clients and prospects are having. It will be common sense like a listing in the
yellow pages was 10 years ago. For now,
it is still an innovative concept and a powerful tool.
Treasury has formally released its explanations of President Obama’s tax proposals for the 2010 fiscal year. The long-awaited “Green Book” provides vital in-depth information for both individual and business taxpayers. The proposed tax changes hit hard: Revenue-raisers aimed at individuals total more than $736 billion over 10 years while business tax cuts amount to $71 billion over the same period.
If you have every looked for working
capital or a small business loan for your business, you know how
frustrating the process is. Today is even more difficult.
If you operate a business that is open to the general public, you’re legally obligated to make the premises accessible to disabled people. Similarly, you might update the facilities for disabled employees in your office. At least you can salvage some tax benefits when you modify the building: Build your renovation plans around the “disabled access credit.”
So, the SBA can’t afford to make these small business loans, the
banks do not want to make the loans, it is not a solution for the
business owner’s problem or a solution to the recession. So, why
develop and promote the ARC program?
In a weak economy, strategic communications
are especially important. Businesses that maintain a regular dialogue stand the best chance of
weathering the economic crisis, experts contend. Here are four low-cost
ways to bolster a strategic marketing communication plan:
As competition stiffens and
consumers’ belts tighten in these turbulent economic times, we offer some tips for building brand equity with customers and prospects:
Having a viable Web presence doesn’t require an open
checkbook, a 24/7 work schedule, or a degree in niche marketing.
Internet success calls for a consistent focus on a few essentials:
Although summer is officially right around the corner, there’s no vacation from tax planning. If you’re dedicated, you’ll be able to bask in tax savings as the weather heats up. Here are seven prime examples:
According to a recent report by Accounting Today magazine, small businesses are being targeted for tougher scrutiny from the IRS. Federal tax audits of small businesses with between $10 million and $50 million in assets increased 29% from 2005 to 2007.
If you’re still grumbling about joining Facebook, LinkedIn or Twitter, know this: Social networks are good for business. “It’s very well documented that businesses that focus on marketing during tough financial times can actually improve,” says Karen Quintos, a vice president at Dell.
Congress is considering legislation that would require employers with 15 or more workers to provide seven days of paid sick leave per employee per year, an expansion of the FMLA that a coalition of HR and business groups immediately decried.
You now have a new tax incentive to invest in fledgling corporations, thanks to the new economic stimulus law. You might even want to plow some money into your own company. Strategy: Buy new “qualified small business stock” (QSBS).
Digging your company out of this recession will probably require some unconventional thinking. Most small businesses can’t simply play it safe and expect to thrive, let alone survive. Ira Blumenthal, author of Ready, Blame, Fire: Myths and Misses in Marketing, points out 10 common business myths that small business owners are too quick to believe in.
Question: “My boss recently confessed that he has “feelings” for me. I am happily married and definitely do not share these feelings. The situation is uncomfortable, because he is the owner of this very small business. Although I have handwritten notes documenting his "emotional attachment,” I have been told this is not sexual harassment. I began looking for a new job, but so far have had no luck. My boss says his feelings haven’t changed, and he wants to know whether I am still planning to leave. What should I do?” — Pursued
Here, in no particular order, are the five companies that have
consistently failed to deliver quality customer service — along with
examples of smaller businesses that do it right.
The American Recovery and Reinvestment Act of 2009 gives small business owners a second chance at a “one-time” tax-saving opportunity. It revives the enhanced Section 179 deduction and “bonus depreciation” tax breaks that officially expired after 2008. These two tax goodies can be combined so that your small business can write off most, if not all, of the cost of new assets placed in service this year.
On April 15, President Obama acknowledged the complexity of the tax code in a speech commemorating the new economic stimulus law. He vowed to make it "easier, faster and less costly" to file income tax returns.
Q. We are a small business, with only 12 full-time employees and a smattering of on-again, off-again part-timers. When an employee leaves, do we have to provide a COBRA notice?
Q. An employee just asked for a week off to attend jury duty. Do I have to grant the request for leave? If I do, can I require the employee to use accrued vacation time during the jury duty leave?
Q. We’re a small business (just eight employees) and haven’t laid anyone off. But business is slow and we need to restructure. We have an employee who has worked here part time (12 hours per week) for 25 years. She is 65 years old. We have one other part-timer (10 hours per week) who has worked here just one year. We’d like to lay off both part-time employees and keep the full-time employees. Can we do that?
According to a study by Webvisible and
Nielsen Online, only 9 percent of small business owners say they are
satisfied with their online advertising efforts. But getting it right
is critical. Here are five tips for
effective online advertising:
The financial crisis means managers and executives, now more than ever, need to hone their leadership skills. Here are the top qualities of a leader, no matter what field you're in, your size or the condition of your balance sheet.
Today is the Federal Trade Commission (FTC) deadline to comply with the 2003 Fair and Accurate Credit Transactions Act’s (FACTA) Identity Theft requirements. Dubbed the “Red Flag Rules,” Sections 114 and 315 of FACTA require that
all financial institutions and creditors create and implement a written
program for “detection, prevention and mitigation” of identity theft.
It’s not enough if you pay your income tax to Uncle Sam, it’s also a question of when the tax is paid. You could be assessed an “estimated tax” interest charge penalty if you don’t fork over the required tax in a timely fashion. Fortunately, you can avoid any penalties if you qualify under one of three safe-harbor methods. The new economic stimulus law eases one of these safe harbors for qualified small business owners.
The owners of FoxTale Book Shoppe,
an independent bookstore in Woodstock, Ga. have steadily grown
their store by eschewing doom-and-gloom
thinking and sharing their passion with customers. Here are four other
lessons from FoxTale that businesses should heed:
Odds are your desk is a hub of organization. If that’s the case, you’re in the ideal position to create more value for your company by coaching others on ROO, or Return on Organization. Your task: Identify a few valuable tips, then share your expertise with others by offering a Lunch ‘n’ Learn on the topic, writing an article in the company newsletter or posting tips through e-mail.
With Administrative Professionals Day approaching tomorrow (April 22), the editors of BusinessManagementDaily.com asked administrative assistants to weigh in with the craziest things their bosses had ever asked them to do. Here are some of the best examples of "other duties as assigned."
In the past year, Microsoft adCenter, Google AdWords, and Yahoo Search Marketing
have simplified the search engine marketing (SEM) process. But if SEM is too intimidating, here are some easier ways to
drive more customers and prospects to your site:
Q. In your article on the new stimulus law, you said that the Making Work Pay credit phases out beginning at an AGI of $150,000. Doesn’t it depend on modified AGI?
Based on a perusal of
worldwide newspaper and magazine coverage of the global economic
crisis, here are six points consistently mentioned by top experts in
small business development:
In a recent DM News column, I apparently offended a segment of the blogging community by suggesting that perhaps blogs might be “an utter waste of time … ” Here’s what all the hoopla has taught me so far:
Why does one ad make a lasting impression and sell merchandise, while another falls flat and doesn’t generate enough revenue to pay its own cost? Virtually all persuasive copy contains the eight elements described in this article.
Attention, filing procrastinators: The IRS is opening up free e-filing to all individual taxpayers on 2008 returns. Should you do it? Our advice: Weigh the pros and cons. While filing electronically certainly has advantages, there are drawbacks, too. It’s not for everyone.
The American Recovery and Reinvestment Act of 2009 contains several tax breaks for energy improvements. Among other modifications, the new law raises the nonbusiness energy credit for improvements to a residence from 10% to 30% and increases the maximum dollar cap to $1,500 (eliminating the $500 lifetime cap).
“If you want something to grow, you must feed it and care for it,”
says Jim Cecil, founder of the Nurture Institute, in Woodbridge, N.J,
which helps companies boost customer loyalty. Here’s a
four-step plan for growing the seed of a single interaction into a
healthy, fruitful customer relationship:
The IRS has announced that it is extending its "fast-track" resolution program for small businesses for two more years. It enables employers with assets of less than $10 million to quickly resolve disputes with the IRS.
The new economic stimulus law provides special relief for some small business owners. It allows you to carry back net operating losses (NOLs) for up to five years instead of just two. This tax break applies to NOLs in tax years beginning or ending in 2008. File the necessary form now to recover taxes paid for prior years when your business was more prosperous.
Few employers win ADA cases by using a business-necessity defense. That’s probably because few employers take the time to really lay out why their business cannot accommodate a particular disability. Now the 11th Circuit has decided a business-necessity case that can serve as a blueprint for employers that want to use it effectively.
Although a blog is easy to create and maintain, many marketers wonder
if the return on investment can be measured. Yes, contends Caroline
Melberg, president and CEO of Small Business Mavericks.
Branding expert Dan Wilson, founding
principal of MarketDifference Communications Group, offers three reasons why building a strong brand is vital to the success of your growing business:
One of the biggest misconceptions about writing to CEOs, CFOs, and other senior executives is that they speak some alien language that has only a passing resemblance to the conversational or written English you and I use every day...
While employee handbooks are not required by law, they can prove essential — especially for small business owners that can't afford to lose a harassment or discrimination lawsuit. The employee handbook has become an essential tool in the employer’s arsenal to defend against liability for employment decisions.
“Penny Pincher’s Almanac” columnist Gene Marks tells BusinessWeek that for many small businesses, a web page can work just fine: that is, a page with basic, important information, such as contact information and maybe a photo or two.
“What’s the most effective length for a business-to-business sales letter?” a reader asked me the other day. Let me see if I can give some sensible guidelines to answer this common question.
The best way to get ideas for headlines when you are stuck is to keep a swipe file of successful headlines, and consult it for inspiration. Here’s a partial collection of such headlines from my swipe file, organized by category.
The massive new “American Recovery and Reinvestment Act of 2009” signed by President Obama on Feb. 17 is bursting at the seams with tax breaks designed to help both individuals and small businesses. Here’s a roundup of 14 tax strategies under the new law.
The politics of the economic recovery and stimulus bill President Obama signed on Feb. 17 have been the talk of Washington for weeks. Now get ready to figure out what it really means for business. Tip for HR pros: Plan on spending lots of time in the accounting department.
In these uncertain economic times, small business owners may think about outsourcing certain payroll duties to third-party service providers. Alert: The IRS is cautioning taxpayers about tax traps in this area. Outsourcing payroll duties doesn’t relieve your company of its obligations to make timely employment tax deposits.
Emily Morgan works 60 to 70 hours a week and doesn’t even get a steady paycheck. You would think she’d loathe her boss, but you’d be wrong. Morgan is a virtual assistant (VA) and chooses how much work she takes on and how many hours she works. Ever wonder whether a VA career might be right for you?
Small business owners usually aren't HR professionals. Figuring out how to effectively — and legally — manage your personnel records is often a daunting task. But, developing a records retention schedule will ensure that a small business keeps the records it needs for operational, legal, fiscal or historical reasons, and then destroys them when they're no longer useful.
Jack Welch preaches “don’t beat yourself up if you are hiring wrong some of the time.” I beg to differ with him on this. Hiring “wrong” can be a killer for a small business.
During my nearly a quarter century as a copywriter and marketing consultant, I have observed that business owners and managers fall into one of four categories as far as their competence and skill in marketing is concerned.
These days, most small businesses rely—either somewhat or heavily—on software applications. According to a new report by PC World magazine, here are 15 of the best free and low-cost software tools for powering any small or midsize business.
Whether you’re a service provider or a retailer, a solidly constructed direct mail sales letter
can work for you over and over
again, for years to come. So says Karen Scharf, an Indianapolis-based
marketing consultant...
President Obama has said his plan for universal health coverage would reduce health care costs and save American businesses $140 billion a year. It would do so largely by requiring big businesses to provide health insurance for their workers or else pay into a federal fund that would provide coverage. Here are the details ...
If your web site loads onto a customer’s screen slower than the speed of instant gratification, you run a serious risk of losing that customer forever. Here are seven simple ways to make your web pages load faster, according to the experts at the Mequoda consulting firm.
Change. America voted for it, and small businesses will certainly receive their fair share in 2009. Here are the five most important workplace issues on President Barack Obama’s agenda.
Most businesspeople acknowledge the importance of training their staff. However, many small business owners pay little more than lip service to this key element that can improve business performance.
Even in a good economy, about one-third of new small businesses don’t survive the first year. The No. 1 reason: poor financial management, which is often preventable. So how can a business survive in a bad economy? Smart cash-flow management is vital.
It’s always a challenging task to complete your federal tax return. But wading through this year’s version is even tougher than usual. Reason: A slew of new law changes and adjustments are reflected on Form 1040 for the first time.
Small business owners can quickly become buried under paperwork and “to-do” lists if they’re not organized. Technology can help … if you know how to use it.
HR pros should look at more than price when they’re shopping for a workers’ compensation insurance carrier. Here's a checklist to cover with your insurance broker before selecting a carrier ...
If your business pays nonemployees for services, you have only until Jan. 31 to give copies of Form 1099 to recipients of certain payments. That includes independent-contractor compensation, dividends, interest, real estate transactions, attorney fees and retirement plan distributions.
What do the nation’s top 25 small business employers (those with 50 to 250 employees) have in common? Great communication. The top 25 put into play an “open communication” concept, says Deb Cohen, chief knowledge officer at the Society for Human Resource Management.
The latest buzzword in expense-minded corporate boardrooms is "off-shoring." It is quickly replacing "outsourcing" as the way to cut fat out of the budget.
Several states, including Illinois, California, Massachusetts and New York, are cracking down on sales tax cheats to fill state coffers drained by the tanking economy, the Associated Press recently reported.
When it comes to advertising, high costs and low response rates can tempt small business owners to throw in the towel. But print, online and broadcast ads can indeed deliver results. The secret is to run the right ad in the right medium.
An old-fashioned idea, bartering, is making a comeback among small
business owners. And since no cash passes hands, you don’t have to pay
any tax on the deal ... right? Wrong.
You’re legally obligated to make the business premises accessible to
disabled individuals. But it’s possible to defray part of the expense
with some smart tax planning.
Federal agencies were embarrassed by a national newspaper report last month that revealed at least $5 billion worth of federal contracts intended for small businesses actually went to large companies.
Several states, including New York, Massachusetts, California and Illinois, are cracking down on sales tax cheats to help fill state coffers drained by the tanking economy, the Associated Press recently reported.
There’s no way to paint a rosy picture about the recent nosedive in the stock market. But at least you can find a silver tax lining if you own a small business where the stock has declined in value. Strategy: Give gifts of stock to family members such as children and grandchildren.
Even when the economy hits the skids, it doesn’t mean everyone has stopped buying. People still need products and services; the challenge is attracting them to your doorstep. To help goose your sales before year-end, go back to some of these traditional tactics.
Now that President-elect Obama’s administration is taking shape, what can taxpayers expect in the next year? Here are a few key proposals made by Obama late in his campaign.
Deborah House, CEO and founder of the Adare Group, a business and
profitability consultancy in Oakbrook Terrace, Ill., suggests a
multipronged business development process to meet the challenges of a struggling economy:
The small biz tax law enacted last year imposed tougher standards on professional tax return preparers. It also increased the penalties that paid preparers face for tax understatements. So what does this have to do with you? Plenty.
Gov. Bill Ritter recently signed into law the 2008 Professional Employer Organizations Modernization Act, which promises greater security for small businesses that rely on PEOs to provide outsourced HR management, employee benefits, payroll and workers’ compensation services ...
The most significant provision in the Emergency Economic Stabilization Act of 2008 for small businesses as well as individuals is the one-year alternative minimum tax (AMT) “patch,” which will have very important budget impacts for small businesses.
Keeping in touch with clients—especially VIPs—requires more than the occasional Hallmark card. That’s why many businesses use custom cards as marketing tools.
If you’re unable to provide your employees with health insurance, you can still help them cover their medical bills by offering Health Savings Accounts (HSAs). A new government web site walks small business owners through the benefits and set-up process.
When I was a general manager of a $100 million division of a large multinational corporation, I never worried about where the money was coming from. I just spent it. When I started my own electronics company, I ran out of cash within the first few months.
By
using a well-coordinated combination of integrated Internet marketing
techniques, some of which cost nothing, you can ensure that your
business pops up when potential buyers search the Web for what you’re selling.
Here are five secrets to developing a powerful integrated online marketing strategy:
Several states, including New York, Massachusetts, California and Illinois, are cracking down on sales tax cheats to help fill state coffers drained by the tanking economy, the AP recently reported. Small businesses tend to be the biggest tax evaders, according to researchers at The Tax Foundation ...
FuelNet chief content creator, Ken Beaulieu,
wrote, directed, and starred in a tongue-in-cheek promotional video as
part of a strategic employee communication strategy. The video was so
well received that it has received four
and a half out of a possible five stars from viewers on YouTube. Here’s
the backstory on the making of the video, straight from the director:
In the past few years, the U.S. Immigration and Customs Enforcement (ICE) has focused its enforcement efforts mainly at large-scale immigration raids at big companies. Now that ICE has more trained officers and better coordination with other federal and state agencies, it’s targeting more small businesses, too ...
When Mike Sinyard’s bike company, Specialized, grew to more than 100
employees and many product lines, he struggled to keep workers focused
on the same goal. Sales stalled.
Done right, online marketing fills your company’s pipeline with better
clients at a fraction of what print-based marketing costs. But are you
doing it right?
Many small businesses eschew establishing operating lines with banks because they dislike the rules, reporting obligations and other perceived inhibitors that may be imposed.
Because of the nationwide economic slump, layoffs are a hot topic these days. What sort of employment law issues should HR professionals consider when the possibility of laying off workers becomes increasingly likely? Here’s a step-by-step guide for smoothing out a difficult and painful process ...
The word “recession,” by itself, has been known to send small business owners into a panic. But worrying is counterproductive. You can’t get anything done when you’re in panic mode.
Tax deductions may allow a small business owner to offset the expense
of starting and running a company. Many businesses take advantage of the following deductions...
The U.S. Small Business Administration (SBA) Office of Advocacy has announced its “Top 10 Rules for Review and Reform” for 2008. The Top 10 list is compiled from more than 80 rules nominated by small business owners and their representatives as part of the Regulatory Review and Reform (3R) initiative.
Many small business people and business owners take "working" vacations. Here are five simple rules to help you achieve an effective work-vacation balance ...
With so much to accomplish, business owners may not be aware that incorporating can be an important step to ensuring the success of a business. Whether it’s a sole proprietorship or a large-scale operation, the advantages to forming a corporate entity are numerous...
Even though most business property must be depreciated over a period of time, you can still speed up write-offs if you’re armed with tax knowledge. That’s because your not-so-secret weapon—the Section 179 expensing allowance—lets you write off most or all of the cost of most business assets in the very first year of ownership! Here are the ground rules.
The economy has seen its share of ups and downs in recent years. But as Jim Champy notes in his book Outsmart! How to Do What Your Competitors Can’t, commerce never ceases. The economy rolls on, hot or cold, and opportunity is always there.
More companies today understand the
importance of knowing how their customers and prospects view
their organizations. They also realize that customer viewpoints can
change quickly. Here's how to gather customer data as objectively, accurately and quickly as possible ....
Like most small businesses, our list of development and improvement projects is far larger than we can address. The solution: a “Partner Project List” on a spreadsheet.
Rapid growth often incites the minds of entrepreneurs, but for businesses that lack the capital, staff or infrastructure, the outcome is financial distress and failure.
More than 60% of employees are counting on a defined-benefit pension plan to fund retirement, even though they acknowledge that the system is moving away from that traditional savings system. Among workers whose employers have reduced their retirement benefits, nearly 40% say they haven’t done anything to pick up the slack. Your organization can help employees build their nest eggs. Here are six ways ...
A small business today faces many of the same technology challenges as larger companies. However, for a variety of reasons, many small businesses have not implemented any type of comprehensive network monitoring tools. Be proactive, implement a 24/7 monitoring solution in your environment today and sleep easier at night!
Question: “I have been at my present job more than nine years. The work I do is
very routine and getting boring. What can I do to make my job more
interesting?” — Anonymous
A bill approved by the state House in June—the Construction Industry Independent Contractor Act—would make intentionally misclassifying workers as independent contractors a third-degree felony for employers in residential or commercial construction. Cases of negligence would constitute a summary offense ...
Q. I am a small business owner. A 17-year-old who is not emancipated and has not graduated from high school recently approached me seeking full-time employment. She claims that, because she is home-schooled, she can work full-time year-round and does not have access to a work permit from her school. Can I legally hire this minor without the school certificate required by Ohio law? ...
Watch for a change in IRS enforcement strategy with the agency ordering its
agents to concentrate its field audits on small corporations, which take a lot less
time to audit.
Q. We’re a small business with eight employees. One employee frequently takes off for six to eight weeks with medical problems. She’s done this each year for the past three years. It’s a huge burden because very few people have her training. We can’t hire a temp. How long do we have to allow her to disappear for months at a time? ...
The U.S. Immigration and Customs Enforcement (ICE) grabbed headlines in the past year with large-scale immigration raids at big companies. But now that ICE has more trained officers and better coordination with other agencies, it’s targeting more small businesses, too ...
Q. I’ve required employees seeking FMLA leave to have their doctors fill out the DOL's medical certification form. Too often, though, the information I get from doctors is too vague to be much help. Is there any way I can get more detail in these forms? ...
New Jersey is poised to become the third state in the nation to guarantee employees paid leave to care for a newborn or a sick relative. The new family leave bill passed the State Senate on March 3, and at this writing is expected to be approved by the Assembly and signed into law by Gov. Jon Corzine ...
In the past, Small Business Tax Strategies has advised you about a tax technique for certain families. It may be used when aging parents live in a home that has appreciated in value, but they’re no longer reaping the full tax benefits of home ownership.
After weeks of negotiations, Congress passed, and the president signed into law, the $152 billion Economic Stimulus Act of 2008. The legislation’s centerpiece is a one-shot tax rebate for individuals, but there’s much more to the new law.
Local governments in Minnesota sometimes legislate their own rules for employers within their jurisdictions. For example, Minneapolis and St. Paul have living-wage laws stipulating higher pay than the state minimum wage ($6.15 per hour for large employers), while a Duluth ordinance prohibits discrimination based on familial status ...
During these difficult economic times, small and midsized businesses are looking for ways to reduce their employment costs—while maintaining employee benefits and gaining a competitive advantage in the marketplace. Many employers are looking at alternative staffing models to meet those objectives ...
Q. We are a small business and cannot afford to have employees out for extended leaves. One of our employees has been accepted for jury duty on a lengthy trial that we’re told could continue for at least another month. Do we have to keep her job open for her? — S.L., South St. Paul ...
HR Law 101: One of the toughest problems for employers is figuring out which law applies to a particular condition: the FMLA, workers' comp or the ADA. The relationship between the FMLA and other federal and state statutes is clear: The law that provides the greatest benefits to the employee applies ...
The IRS Small Business/Self-Employed (SB/SE) Division’s Fast Track Settlement plan, an initiative designed to expedite case resolution, is expanding to five new areas: two on the East Coast and three on the West Coast.
Despite the slow “death” of the federal estate tax in 2010, this onerous tax is scheduled to be revived in 2011—with a vengeance—after only a one-year repeal. At this time, congressional efforts to eliminate the estate tax for good appear to be dead in the water. So estate planning remains on the critical list for wealthy families.
The deadline for filing calendar year 2007 tax returns for corporations—generally, March 17, 2008—is right around the corner. With a little effort and a lot of savvy, you can maximize the tax benefits for your small business.
When many business people and HR pros think of offering employees flexibility in balancing work and life issues, they think in terms of providing scheduling options. But in small businesses, that’s often a deal breaker. Instead, think of flexibility as a broad strategy for business success ...
If you operate a small business, you may make special accommodations for disabled individuals. In some cases, you’re required to do so by law. For example, you might install ramps for easier access to a store or improve the facilities in employee restrooms.
Q. I own a small business with 27 employees. Last month I was forced to terminate one of my employees who had been caught stealing. Because I knew he was having some trouble at home, I agreed not to contest unemployment. However, I just received an e-mail from this former employee asking me tell to him, in writing, why I fired him. I cannot shake the feeling that I am being set up for something. After all, I told him during his termination meeting that he was being fired for stealing. Do I have to respond to this request? ...
The S corporation has become, by far, the most popular type of business entity for small business owners. According to the latest reports, about 4 million businesses have elected S corp status.
In the fall of 2007, the Ohio Civil Rights Commission’s proposed revisions to the rules governing pregnancy discrimination became a hot political topic. Due to some unusual political wrangling, the future of the proposed rule revision is very much in question ...
Gov. Jon Corzine and State Sen. Stephen Sweeney, D-Gloucester, are pushing a bill that would make New Jersey the third state to offer mandatory paid leave to employees to care for a new child or sick relative. Sweeney originally proposed 10 weeks of leave, but said in November he would consider cutting that to six weeks if it would get the proposed plan passed ...
As the days in the year dwindle, you may think you’ve done everything possible to reduce your ’07 tax liability. But we still have a few tricks you might use as late as the final week of the year. Here are 10 ways to beat the clock:
The IRS has announced it’s stepping up audit efforts with a renewed emphasis on examining returns of small business entities. Watch out for these five danger signs that could lead to IRS inquiries.
Although your business doesn’t have quite the same flexibility at year-end as individual filers, you still can reduce your 2007 tax bill. Here are eight top techniques usually available to small business owners.
Saving taxes is a year-round proposition, but tax planning takes on added significance at year-end. This Special Issue primarily is devoted to year-end tax strategies that can literally save you thousands of tax dollars. On the other hand, if you stand by idly, you’ll be missing out on valuable tax breaks.
Make a few smart moves as the year winds down, and you can slash the tax bills for both you and your business. The overall strategy: push income into next year and pull deductions into this year.
For your convenience, we’ve divided this year-end issue into two main sections: personal and business. We offer you 10 ways to cut your personal taxes (starting below) and eight ways to trim business taxes.
Several key tax breaks are going off the books at the end of 2007 (unless Congress extends them), so take a look at our seven last-chance tax opportunities to cash in your tax chips now.
Bonus-depreciation deductions are a thing of the past. But that doesn’t mean you can’t pump up deductions for business assets this year. Take advantage of enhanced Section 179 provisions.
Some managers turn every problem into a three-alarm fire, which can be stressful and ineffective. How do you know if a manager (or you) is a “management pyromaniac”? Fortune Small Business offers this quiz ...
Employers can raise deductibles and co-pays only so much before employees begin to doubt the value of their health benefits. So, organizations are looking for other ways to get meaningful savings as health costs continue to rise. Enter the employee wellness program ...
More small business travelers now are hitting the highways to avoid the hassles and costs of flying. It can be a smart option, especially if your clients are within 400 miles of your headquarters.
Small businesses—especially those in the hospitality, restaurant and specialty retail industries—have been victimized by a new round of scammers who sell workplace health and safety posters they claim are mandatory.
Over the past few years, large companies such as Microsoft, Abercrombie and Fitch, Intel, Federal Express, UPS, IKEA and Burger King have been involved in multimillion dollar class-action lawsuits for violating state and federal wage-and-hour laws. Now add Wal-Mart to that list ...
For many small businesses, a mailing list is where their advertising begins and ends. But with mailing costs boosted in May and higher rates forecast ahead, it’s smart to consider a lower-cost (virtually no-cost) alternative: e-mail marketing.
Gov. Ed Rendell has been traveling the state selling his plan to make health care available and affordable for all Pennsylvanians. The plan—introduced in the House of Representatives as House Bill 700—proposes a program called Cover All Pennsylvanians (CAP) ...
The New Jersey Department of Banking and Insurance has fined Cigna HealthCare of New Jersey and Connecticut General Life $2.1 million for deceiving employers, and ordered Cigna to restore better coverage to 2,123 small businesses ...
On-site clinics are less common than they were a few decades ago, when the company doctor was as much a fixture as the school nurse. But the high cost of health care—and the trend toward focusing on prevention and wellness as ways to lower those costs—is bringing them back into vogue ...
Markdowns are an often-unavoidable part of any business’s product sales
and marketing strategy. After all, if you don’t mark down merchandise that’s
not selling, you’re tying up cash that could otherwise be spent on salable
goods.
Employers and consumers alike have been wrestling with skyrocketing health care costs, with no end in sight. And while Congress has talked much about reforming the system, it's been spinning its wheels for years. The same can't be said for state legislatures, where lawmakers are actively passing laws to make coverage more affordable ...
A CollegeGrad.com survey of 500 recent college graduates asked, "Which size company you'd most like to work for?" The response: 70 percent favored small to midsize companies ...
Congress voted to increase the federal minimum wage from the current $5.15 per hour to $7.25 per hour in a three-step process. The federal minimum will jump 70-cents per hour in July 2007, July 2008 and July 2009.
Pennsylvanians are more likely than the average American to go to the emergency room for treatment, a problem targeted by Gov. Ed Rendell’s proposed “Prescription for Pennsylvania” reform plan ...
Shortly before leaving office, Gov. Pataki signed New York’s Mental Health Parity Law, which requires insurers to provide mental health benefits in all health insurance policies issued in the state ...
Lt. Gov. David Dewhurst recently announced that the state legislature is looking for ways to amend Texas’ new business tax to enable more employers to provide health benefits for their employees ...
As the year-end approaches, take an inventory of employees who haven't taken their vacations yet, and suggest they book a getaway. Vacation skipping has become an epidemic ...
HR Law 101: Under the ADA, a "reasonable accommodation" enables a qualified individual with a disability to perform the job's essential functions. But an accommodation is considered unreasonable when it causes the employer an undue hardship ...
HR Law 101: The National Labor Relations Board (NLRB) applies strict rules of conduct to employers during union-organizing campaigns. But whether you choose to accept the union or resist it, you can still exercise your rights effectively. Or, if a union has already won a representation election in your organization, you need to know how to prevent the union from encroaching on your management rights ...
HR Law 101: Employee theft costs U.S. businesses $40 billion every year, according to estimates by the U.S. Chamber of Commerce. And internal theft contributes to the failure of one in 10 U.S. businesses annually. That’s why it’s imperative for your organization to have a clearly defined anti-theft policy...
Q. Our business has 14 employees, and we pay 100 percent of their health insurance costs. One employee is out on workers' comp. Are we required to continue paying his health insurance, or can we offer him COBRA? —P.F., Delaware
Q. We’re a small business with eight employees. One employee frequently takes off for six to eight weeks with medical problems. She’s done this each year for the past three years. It’s a huge burden because very few people have her training, so we can’t hire a temp. How long do we have to allow her to disappear for months at a time? —M.S., Ohio
Gov. Rendell signed legislation last month that increases Pennsylvania's minimum wage by $2 per hour phased in over the next two years, but smaller businesses will have more time before having to pay the higher rates ...
Q. We're a small business (just eight employees) and haven't laid anyone off. But business is slow and we need to restructure. We have an employee who has worked here part time (12 hours per week) for 25 years. She is 65 years old. We have one other part-timer (10 hours per week) who has worked here just one year. We'd like to lay off both part-time employees and keep the full-time employees. Can we do that? —P.U., Georgia
Q. Can we require employees to be on our health insurance plan? We’re a small business and to meet the requirements for group insurance, we require all employees that aren’t covered by a spouse’s policy to enroll. We pay 75 percent of the premium. —G.P., Oklahoma
If you’ve been filing paper tax returns for years or you simply let your accountant handle the whole thing, preparing and filing your return online this year may intrigue you. Should you do it?
HR Law 101: The Employee Retirement Income Security Act (ERISA) governs the administration of employee retirement plans. Pension plans fall into two major categories: qualified and nonqualified plans ...
HR Law 101: The IRS has the burden of proof when it interrogates an employer about its worker classifications. Before the Small Business Job Protection Act of 1996, the onus was on the employer to prove that an individual didn't qualify as an employee ...
As of Jan. 1, 2007, the minimum wage in Ohio is $6.85 per hour. Employers with gross sales of less than $250,000 may continue to pay the federal minimum wage ($5.85 per hour effective July 24, 2007) ...
Crash! That was the sound of the IRS coming down hard on private annuities. In the form of proposed regulations, the IRS wants to eliminate some of the income-tax advantages of selling appreciated property, such as real estate, in exchange for a private annuity.
If you’re like most captains of small businesses, you don’t pay much attention to managing your energy costs. You probably delegate that to an office manager or someone in accounting. What you may not realize is that energy costs often comprise about a third of the average small business’s expenses.
The Small Business Administration has announced new regulations and measures intended to help small businesses secure more federal government contracts while improving transparency and accountability.
Although you may have spent years building up your business, your family may be forced to sell it lock, stock and barrel soon after your death to pay the ensuing estate-tax bill. The full amount of federal estate tax is generally due nine months after death.
The IRS recently outlined efforts to close an estimated $290 billion tax gap on unreported income. Businesses of all sizes can also expect closer scrutiny.
While 88 percent of small businesses agree that they need a business- continuity plan, only 39 percent actually have one, according to a new Ad Council survey.
The IRS recently outlined efforts to close an estimated $290 billion tax gap on unreported income. Businesses of all sizes can also expect closer scrutiny.
How would you rate your employees? You can probably identify your best and worst performers in an instant. All small business owners and execs form opinions of their people, just as teachers assess their students. And those opinions tend to stick.
The Small Business Administration is offering “podcasts”— oral presentations that you can download onto an iPod or other portable mp3 player — on topics related to the launch and growth of business.
Beware: The IRS has targeted small business owners and self-employeds for audits over the next few years. In fact, the effort is already under way, and you may be one of those singled out for the sting of an investigation.
Are you telling your investors everything they need to know about your company? If not, you’re among the many small businesses that keep investors in the dark …and not necessarily on purpose.
Feeling the pinch of rising fuel prices? It’s affecting 43 percent of small companies and moderately affecting 32 percent of them, says a new survey by the National Small Business Association.
This psychological test of small business chiefs, called the Test of
Attentional and Interpersonal Style (TAIS), also works with big
corporations, the military and Olympic athletes. See how you compare:
You might think affordable—or free—training is hard to come by. Not so, says Linda Newell, director of learning and development for Denverbased Policy Studies Inc.
The IRS says it will stop collecting the federal excise tax on long-distance telephone service and will refund excise taxes paid—plus interest—since Feb. 28, 2003.
The IRS says it will stop collecting the federal excise tax on
long-distance telephone service and will refund excise taxes paid—plus
interest—since Feb. 28, 2003.
As a small business owner, you generally can deduct 100 percent of your family’s medical insurance costs even if you’re self-employed. But you can do better tax wise by taking an unusual approach.
As a small business owner, you generally can deduct 100 percent of your family’s medical insurance costs even if you’re self-employed. But you can do better taxwise by taking an unusual approach.
The IRS says it will stop collecting the federal excise tax on long-distance telephone service and will refund excise taxes paid—plus interest— since Feb. 28, 2003. (IRS Notice 2006-50)
Seventy-seven percent of small businesses aren’t prepared for a natural disaster, and 84 percent don’t worry about being the victim of one within the next 12 months, a recent survey by MasterCard International indicates.
Even though we warned you recently not to let employees take undue advantage of them, flexible work options continue to offer small businesses a significant advantage over large businesses in recruiting and retaining employees.
How can you save for retirement while you’re operating your own business? At one time, small business owners were often left out in the cold. But saving for retirement isn’t just for the “big boys,” anymore.
If you’re not careful, you could be held liable for the estate’s federal tax debts. In other words, instead of paying the amount that’s due out of the estate’s assets, you might have to come up with the tax payments out of your own pocket!
If the 100 percent federal employment tax penalty doesn’t strike fear in the hearts of small business owners, it should. Why? That tax-code provision requires the person “responsible” for unpaid employment taxes to personally pay 100 percent of the amount withheld from employees’ paychecks.
With prices falling, you should pay less for telecom costs these days. But you might actually be spending more than your competitors and not know it. To find out, benchmark your telecom costs against other small businesses in your industry.
How can you save for retirement while operating your business? At one time, small business owners were often left out in the cold. But retirement savings isn’t just for the “big boys,” anymore.
When one of your employees becomes seriously ill, you face two major challenges at once: understanding the emotions of the employee and other co-workers, while making sure that the necessary work still gets done.
Have you reached the point where your “to do” list is so long that you can’t decide which task to tackle first? Learning to manage competing priorities is a critical skill for small business owners. Use this four-step process to tackle tasks more effectively.
Say that you bought 100 shares of Jones Co., a qualified small business, for $10,000 on June 1, 2001. On May 1, 2006, you sell the shares for $100,000.
Many small businesses believe that they need every customer they can get. And for some, that may be true. But, in most cases, you may be better off telling certain high-maintenance clients and customers to take their business elsewhere.
Are you waiting until the last minute to file your tax return? Maybe you’re putting things off because you figure you’ll have to pay Uncle Sam a tidy sum. At least you can still put a good-size dent in your tax bill at this late date. Here’s a sampling of seven prime opportunities for tax-return procrastinators.
“I’m from the government, and I’m here to help.” It may be the punch line to an old joke, but it can also be a valuable message that small business owners overlook.
You know that word-of-mouth advertising is the best way to spread the good news about your company. But many small businesses ignore some of the easiest ways to increase the level and intensity of that type of free advertising.
When it comes to your Web site, the number of clicks doesn’t matter … it’s all about the sale. That’s why it’s important to maximize your site’s “conversion rate,” which is the number of Web site visitors who act on an offer (buy a product, etc.) divided by the number of total visitors who see the offer.
It’s too late to do anything about the amount you’ll owe on your 2005 tax return … right? Wrong! You can still slash your tax bill by zeroing in on tax breaks that usually fall by the wayside if you’re operating on cruise control.
In this Internet age, mail-order catalogs may seem like an ancient sales tool. But placing your product in a catalog can be a gold mine for a small business.
If you’ve been filing a paper tax return for years or you simply let your accountant handle the whole thing, you may be intrigued by the possibility of completing your entire tax return on your computer and then filing online. Should you do it?
In the waning days of last year, the president inked the Gulf Opportunity Zone Act of 2005. This new legislation, following close on the heels of the Katrina Emergency Tax Relief Act (KETRA), includes various tax measures benefiting victims of Hurricanes Katrina, Rita and Wilma.
Say you took out a home-equity loan last year and used the cash to pump up your pass-through business, such as an S corporation, partnership or limited liability corporation (LLC). You’re generally entitled to deduct the interest paid on the first $100,000 of that home-equity loan as mortgage interest (as an itemized deduction on your Schedule A).
As a small business owner, you want to reward your top performers. But there’s a drawback to doling out stock to highly valued employees: You’re diluting your ownership interest.
If your small business operates more than one vehicle, chances are that you now (or will eventually) spend too much time managing the related maintenance and paperwork. An increasingly smart solution: Look into fleet-management services, which are no longer just for big businesses thanks to technology advances.
How can you give your struggling
company a shot in the arm to generate a much-needed growth spurt? It
takes money to make money, but things often aren’t that simple.
Question: "I have two daughters in college and am looking for ways to use my skills at
home to earn some extra income. I have gathered information from the
Internet on virtual assistants. It looks like a possibility for me,
but was wondering if anyone is a virtual assistant and if they would
give me some advice (pros, cons, pay, reputable organizations to join,
etc.). Thank you." -- Connie
It happens more often than you may think: A bank notifies a small business owner that the IRS or the state is levying his bank account in connection with a corporate entity he stopped using years ago. How can that be?
If your company is among the 80 percent of U.S. businesses that lease office equipment and furniture rather than buy it, you already know the benefits of leasing. But do you know the hidden pitfalls that can drive up your leasing costs?
If your company expects to owe less than $1,000 in employment taxes annually, you’ll be able to file the new Form 944 (Employer’s Annual Federal Tax Return) once each year with your annual return, rather than filing Form 941 (Employer’s Quarterly Federal Tax Return) four times a year.
If you’ve considered switching your business to an S corporation but have been ineligible in the past, it’s time to take another look. Why? A 2004 tax law opened up S corporation status to a whole truckload of previously disqualified small and midsize businesses, and it paves the way for your S corp’s future expansion without forfeiting any tax breaks.
Traditionally, call centers have been too pricey for small businesses that need only a few employees (or temps) to handle sales and customer-service calls. But now, more call centers are hiring home-based phone agents, making the service more affordable for small and midsize businesses.
Does your small company sell products or services over the Internet? If so, make sure you enter the vast world of cybersales with your eyes wide open. Specifically, be aware that you could be responsible for collecting sales tax from online sales.
As a small business owner, your company's 401(k) plan is one of the best deals around. You can salt away part of your salary tax-free within generous limits, while the company matches all or part of your deferral.
For too many people, the tax season is a February-to-April affair. But trying to plan your tax strategies after Dec. 31 is as futile as a football team drawing up its game plan with two minutes left in the fourth quarter: You can't do much to affect the score.
Question: It doesn't happen often, but whenever an employee is terminated, we struggle
with how - or if - to announce it to the rest of the employees. It's such a
sensitive issue. How do you let people know without affecting morale? -- Kristin, Seattle
While much of the recent U.S. Supreme Court drama has swirled around who will serve on the court, employers are looking forward to key employment-law cases that the court will hear ...
Health insurance costs continue to skyrocket without any end in sight. As a result, companies both large and small are exploring alternate means to cover their employees.
As you thumb through the mail one day, an unassuming letter catches your eye. Return address: The IRS. You nervously tear open the envelope and your worst fears are confirmed: The IRS has chosen your return for a correspondence audit.
If you operate a business that's open to the public, you're legally required to make the premises accessible to disabled customers. That may include creating wheelchair ramps, wider aisles or reconfiguring your restrooms.
The push to audit S corporations (described above) is part of a larger IRS initiative to examine more returns, particularly of small business owners. Don't think you're immune just because you've been able to fly under the radar so far.
This finally may be the year Congress authorizes association health plans, which would allow small businesses to participate in health insurance plans through trade associations that span state lines. The House ...
This finally may be the year Congress authorizes association health plans, a move that could lower health insurance premium costs for small business owners.
When the Royal Bank of Canada transferred Shelley Gunton and Brian
Connolly to Hong Kong in 1985, their beloved pointer-lab mix Joey
languished in quarantine for six months as a precaution against rabies.
Congress often tinkers with the tax code, but rarely does it throw business owners a brand-new deduction. That's why last year's tax law—the American Jobs Creation Act— created such a stir. Starting in 2005, the law authorizes a new write-off for qualified manufacturers that could eventually amount to a 3 percent rate cut.
When you started your small business, you poured most of your earnings back into the operation. Unfortunately, that didn't leave much cash for retirement savings. Now that your business is running smoothly, you may hope to make up for lost ground—and fast.
Nobody's getting any younger. But if you own a small business and you're older than most of your employees, you may be able to max out on your retirement plan and jump-start your nest egg. That's especially true if your company doesn't have a retirement plan in place or you haven't been able to max out on plan contributions.
In a recent article, we discussed several ways to chop down the rising property taxes on your personal residence. (5/30/05 issue) But escalating property taxes aren't limited to homeowners. Small business owners are getting socked lately as the value of their business property has gone up, too.
If you're like most people, you finally put your 2004 tax return to bed a few short weeks ago. But then comes a sinking realization that you missed a tax deduction or credit opportunity on your return. Or maybe you accidentally failed to report income, miscalculated a capital gain or forgot a business deduction. Should you file an amended return or not? That is the question.
If you're like most small business owners, your spouse does odds and ends around the office and pitches in when you need help. This is particularly true in the summer months when other employees take vacation leave.
Are you and your employees adequately protected in the event of a long-term illness? Despite the potential for dire consequences—such as exhausting their lifetime savings—few people secure long-term care insurance on their own.
Issue: Companies that lack any kind of security system run a 4.5 times higher risk of burglary and vandalism. Benefit: Small-scale security systems have become more affordable and easier to ...
Issue: Paying higher-than-average administrative costs for your organization's 401(k) plan. Risk: Smaller companies unwittingly shell out bigger fees. Action: Don't take 401(k) fees at face value; shop around and ...
Issue: Web-based payroll services for small businesses offer more features than ever, and at better prices. Benefit: Save HR time and cut your administrative costs. Action: Look into the ...
Issue: Are your employee-leave policies too stingy, too generous or just right? Benefit: Knowing how your organization compares to others helps you attract and retain top employees. Action: Review ...
Issue: Many HR professionals run one-person departments that struggle to handle up to 150 employees or more. Benefit: By managing a solo operation well, you illustrate expertise that's attractive to ...
The hot new game of diversity marketing is old hat for Mike Hanika. His company, Appliance Sales & Service Co. in San Francisco, employs a staff of 17 who speak 16 languages, including Arabic, Lebanese and Armenian.
America's largest employer, Wal-Mart, recently announced that it will begin running criminal background checks on job candidates. The decision comes on the heels of two incidents in which employees with ...
Chances are you've used the float—the time it takes banks to process checks—at least once during difficult cash-flow moments. But take note: A new law will eliminate this age-old practice, possibly forcing you to change your cash-flow practices.
You may have read that legislation sailed through the House last month that would give employers more time to challenge OSHA citations and allow small businesses to recoup legal fees when they defeat an OSHA lawsuit.
Small business owners like you often face diversification and liquidity problems because most of your wealth is tied up in the company. If your business experiences a serious reversal, your personal assets could be depleted.
As the owner or sole proprietor of a small business, you reap most of the rewards. But you also run most, if not all, of the risks. So you might be hesitant to sponsor a qualified retirement plan for yourself and your employees. One reason: Creditors could gain access to your plan assets if the business ever goes under.
Democratic presidential candidate Sen. John Kerry unveiled his plan this month to offer small business owners a mix of tax breaks and government help in exchange for lowering health insurance costs for employees.
If you instinctively thought of your three biggest clients, you may be making a mistake that's common among small businesses: focusing on less profitable larger accounts at the expense of smaller, more profitable ones.
President Bush signed legislation last month that removes the temporary $750,000 cap on small business loans made through the U.S. Small Business Administration's flagship 7(a) loan program.
Like most small business owners, you probably work with a tight advertising budget—if you have one at all. One way to stretch your ad dollars: Use customer testimonials, a powerful and inexpensive form of advertising.
If you've been frustrated with your bank's service, 2004 is the year to shop around for a replacement, or, at the very least, to press your current institution for more services, especially if you do business with a large bank or community bank.
With PC sales and profit margins shrinking, big computer companies are rolling out a wider variety of small business networking hardware. Prices are lower than ever.
You never want your tax return to stick out like a sore thumb at the IRS. That's why it's good to know whether your deductions fall within the national averages.
President Bush is once again pushing Congress to radically reshape America's savings plan system, creating three new tax-preferred investment accounts.
"Web rings" are basically a linked collection of Web sites with a common theme, industry or product business. The idea behind them: Banding together an assortment of smaller merchants or services can help the entire group compete more effectively online and build Web traffic.
Issue: Cheap new products make it easier to thwart workplace drug tests. Risks: You could inadvertently be adding more substance abusers to the payroll. Action: Thwart drug-test cheaters with ...
Q: I operate a small relocation company with 10 full-time employees and a few part-timers. We don't have a retirement plan. I remember reading something recently about a tax break for setting up a plan. Is there such a break? E.R.M., Chicago, Ill.
Thanks to the recent Bush tax acts, you can deduct on your 2003 tax return either 30 percent or 50 percent of the cost of qualifying new assets that you bought and placed in service last year. The remaining amount is then depreciated using standard tax rules.
When meeting with your accountant this tax season, don't be surprised if he or she tries to sell you on a new benefit-
management program or other service.
Starting this year, the federal government offers a single Internet portal for small businesses that want to do business with the government. The result: You'll have an easier time registering as a contractor and marketing your goods and services to the government.
Small businesses spend a lot of time and money on employee training, but they rarely measure their return on investment (ROI). And while it's not easy to measure your training ROI, it's important to make sure the money you're spending actually boosts the bottom line.
With the economic upsurge generating more hiring, it may become a "buyer's market" again. So you'll need to show your best cards to win the star applicants.
Now that the busiest shipping season is over, take time to evaluate your mailing methods. You may be overlooking some relatively easy ways to save money.
Issue: Can a small organization point to its size as a valid reason to deny jury-duty leave? Risk: State law exemptions won't necessarily protect you from this type of lawsuit. ...
Issue: How to meet your "interactive process" requirement with disabled employees to create accommodations. Benefit: You can reject an employee's accommodation request if the worker doesn't cooperate in the interactive ...
Issue: How to follow Americans with Disabilities Act rules requiring an "interactive process" with disabled employees. Benefit: You can reject an accommodation request if the employee won't cooperate in the ...
Surveys show that more small businesses are using e-mail as a marketing and advertising tool. The obvious reasons: no printing or mailing costs, and customers can click on an embedded Web address and buy instantly.
Most states operate on a fiscal year that ends June 30, so state agency buyers typically crank up their spending in the late winter and spring. In many cases, they'll spend unused funds in their budget to justify the same or higher funding for next year.
You probably saw all the fanfare this month surrounding President Bush's signing of the Medicare reform law, the biggest rewrite of Medicare in its nearly 40 year history.
But, unless you're on Medicare, you probably thought the Medicare Prescription Drug and Modernization Act of 2003 contained nothing for you. Well, you were wrong.
To the cheers of small business owners, Congress this month created Health Savings Accounts (HSAs), as described on page 1. That adds a new acronym to the already confusing tangle of tax-advantaged health care spending, which includes FSAs, MSAs, HRAs and more.
If you're still handling payroll yourself, you know it's time consuming and prone to errors. So here's some good news: A new crop of online payroll services are popping up and—no coincidence—the costs are dropping fast.
Staying one step ahead of the IRS isn't easy for most small businesses. One wrong step—a forgotten form, a lost receipt—could invite Uncle Sam's wrath.
I am one of three owners in a small business. We're concerned about the impact of a disability on one of us. What are the possible tax ramifications if we buy disability insurance on the lives of all three business owners to fund a disability buyout? How do we structure the arrangement to benefit from lower capital gains taxes?
More small businesses are leasing technology equipment to cut costs and increase efficiency. But it could mean scant savings if you choose the wrong lease agreement.
Children of business owners are two to three times more likely than others to become business owners themselves, according to a new study promoted in the U.S. Small Business Administration's newsletter.
Making a sale is worthless if you never receive payment. Many companies make the fatal mistake in their collection process of either letting debtors off too easily or turning them off for good.
Hammer home safety rules to new hires before they start. Don't expect on-the-job experience to teach them the safety ropes. Reason: New employees suffer the most says a new study ...
Issue: Many small organizations waste time and money complying with employment laws that apply only to larger businesses. Benefit: By knowing which laws you can ignore, you'll trim your workload ...
Hammer home safety rules to new hires before they start; don't expect "on the job" experience to teach them the safety ropes. Reason: New employees have a greater likelihood of being ...
THE LAW. You have the right to demand a drug-free workplace, but employees also have reasonable rights to privacy. That's why drug testing and substance abuse prevention ...
THE LAW. The Equal Pay Act (EPA) of 1963 prohibits employers from dishing out different wages or bene-fits on the basis of gender for "equal work on jobs (requiring) equal skill, ...
California's recent passage of a paid family leave bill for workers may be the first in the nation, but don't expect it to be the last. Reason: The new law, which ...
Now's the time to improve your employee relations. Reason: Labor unions see opportunity in the current anti-corporate mood, and they're hoping to ride this wave of public distrust to victories in ...
It could be some of both. The U.S. Labor Department recently announced it's creating a new position, a director of compliance assistance who will make sure small businesses comply with regulations. ...
The summer vacation season is upon us, and that means it's time to dust off your company's time-off policy. Despite lingering uncertainty over the economic recovery and travel safety, 77 ...
Look into turning your back-office duties over to a professional employer organization (PEO). New trends and fresh players have heightened competition among PEOs, which serve as a "co-employer" and handle recruiting, ...
More lawyers are offering services a la carte to attract small businesses. Example: An attorney charges separate fees for negotiating a settlement, drafting a legal document, moving paperwork through the legal ...
Since 1993, employees have been able to take up to 12 weeks of unpaid leave to care for their own "serious health condition" or to tend to a child, spouse or ...
The U.S. Supreme Court recently gave payroll administrators a break under the Employee Retirement Income Security Act (ERISA) by ruling that they don't have to monitor conflicting state laws regarding beneficiaries. ...
Business is booming and you're adding staff. Along with those new workers, you may be picking up an alphabet-soup of new legal burdens that grant new rights to your employees, ADA ...
Document everything. Take notes on all discussions with your lawyer, including date, time, your requests and all commitments. Cluster needs. If you pay an hourly rate, bundle your questions instead ...
The average U.S. company loses more than $9 a day per employee to fraud and abuse, according to the Association of Certified Fraud Examiners (ACFE). A new ACFE report ...
If you have 100 or fewer employees, you can set up an uncomplicated retirement plan called a SIMPLE (Savings Incentive Match Plan for Employees). But there are a couple of key ...
The Twentieth Century Fox production lot in Los Angeles includes many conveniences, including a commissary, store and automatic teller machine. However, Les Jankey ...
If you operate a small business, don't take it for granted that you're immune from state discrimination laws. It's true that state anti-bias laws don't apply ...
Don't look for any major new employment laws this year. Instead, look for President Clinton's appointees in regulatory agencies to try to pack some punch into their final months. Here's what ...
An increase in age discrimination claims may be as inevitable as the graying of baby boomers. But some smart planning and good policy follow-through on your part can keep you ...
You don’t have to speak in a booming voice and offer an extra-firm
handshake to make your presence felt. Even if you’re painfully shy, you
can use your soft-spoken demeanor to get ahead.
Rather than pay high-priced consultants to dissect your business, seek free or low-cost advice. SCORE, the Small Business Administration’s Service Corps of Retired Executives.
You probably know that you can benefit from more self-promotion. But then you start listing excuses: I’m shy, I’m modest, I don’t know how, etc. Raleigh Pinskey won’t hear any of it. Her book, 101 Ways to Promote Yourself (Avon Books, New York, 1997) tells how you can improve your name visibility by attracting media attention, leading community outreach efforts and networking with flair.
