WELCOME

Time for a Change

Aside from saving a few trees, there are a number of reasons MBA is sending you a new variation of the printed Alliance Report newsletter. The regular monthly newsletter that members are used to seeing as snail mail will be produced five times a year. In the off months, two new e-newsletters will be sent. We hope you will enjoy this online venture.

This new effort offers a number of benefits: first, it allows MBA to keep in touch with the growing trend of electronic communication – is your office paperless yet? Next, it is a money-saver which is an advantage to all businesses.

Last, it's a great medium. As with other computer techniques, a click of a button sends information on its way to thousands of locations, and with all due respect to the post office, it’s pretty darn reliable.

Very truly yours,
Libby Beatty, Chair
MBA Board of Directors

NEWSWORTHY

Telephone Tax Refund

The Telephone Excise Tax Refund (TETR) is a one-time payment available on your 2006 federal income tax return. It is designed to refund previously collected long distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it.

Businesses and tax-exempts can dig through their old phone bills for the past 41 months to base their telephone tax refund on the actual amount of tax paid. Or they can review their bills for 2 months and use a special formula to figure the refund. The refund is capped at 2 percent of the total telephone expenses for businesses and tax-exempt organizations with 250 or fewer employee.

Businesses must fill out Form 8913, Credit for Federal Telephone Excise Tax Paid, and attach it to the income tax return they normally file: Form 1120, Form 1120S, Form 1065 or Form 1041.

Options for requesting this refund vary for sole proprietors, who file a Schedule C with the Form 1040, depending on the gross income reported on the Schedule C.

New Standard in Small Biz Certification

Starting June 30, 2007, the Small Business Administration (SBA) will require small businesses with long-term government contracts of over five years to be recertified as a small business every five years. The hope is that this requirement will make federal contract reporting more accurate and will increase the opportunities for small business.

By law, each year, SBA requires federal agencies to award a certain percentage of their contracts to small businesses. In the past, businesses who outgrew their small business status or were acquired by larger companies during a long-term contract continued to be credited as a small business thus taking away contract opportunities for “true” small businesses.

The new regulation, however, does not require termination of existing contracts if a company can no longer certify that they are small. What happens is the contracting agency can no longer claim small business credit for that contract.

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MARKETING

Catchy Commercials

Video viral marketing is one of the newest and most inexpensive trends in marketing on the web. Thanks to sites like YouTube.com over 100 million videos are viewed and shared free of charge by online users daily. Concealed within the amateur footage, smart companies are advertising with clever and memorable ad videos.

A survey conducted by the Online Publishers Association found that 66 percent of online video viewers had seen advertisements and one-third visited advertised sites of which 8 percent made purchases. Considering that your only investment is the cost of video production, 8 percent seems like a good return.

Search Yourself

If you’ve never done it before, go online and search your name or your company and see what comes up. By taking some time to see how and where you’re listed online, you’ll be conducting valuable market research at no expense. Try large search engines such as Ask.com or Google but also try smaller, alternate search engines to get a wide sample.

Search blogs too by using blog search engines like technorati.com and blogpulse.com. And take advantage of blogs to get direct access and a direct dialogue to discussions surrounding your business or others like it.

Customer Service Culture

It takes more than a catchy slogan to prove to customers that you are dedicated to their satisfaction. Customer service excellence is a mindset that must be cultivated throughout every department of your organization. Here are a few techniques to help create a culture of customer service in your organization:

Keep Your Customers in Mind: Consider the level of service you want your customers to receive, and only hire staff that can provide your ideal. Beyond Training: Keep employees focused on customer service by holding regular meetings where experiences and ideas are shared. Follow-Up: Having staff follow-up with a customer after a sale will further illustrate your company’s interest in their input and satisfaction.

YOUR FINANCES

The IRS Is My Friend. Myth or Miracle?

Does the acronym IRS ever make you feel warm and fuzzy? In spite of efforts to improve their image, the IRS will be a long time ridding themselves of the frightful tag of tax collector.

In keeping with this effort, the IRS has simplified a system for business taxpayers. Instead of four forms to file for an extension, now there's just one, Form 7004. This option is available to most non-corporate business taxpayers. Check out www.irs.gov. There now, don't you feel better?

Surf, Ship & Save

Smarter (and cheaper) shipping is just a click away for small businesses. RedRoller Inc. is a new web-based shipping system that compares shipping rates and services across multiple carriers, and the comparison service is free. The format is simple, clear and user-friendly and can be viewed at www.redroller.com. With the ability to complete shipping transactions after comparing quotes, the system will most likely be a boon for online shippers. Look for RedRoller to soon be integrated into popular sites like eBay.

Efficient with Your Building's Energy?
Here's a Pat on the Back from the IRS

Commercial building owners or leaseholders can qualify for a tax deduction for making their building energy efficient. The IRS has established a process to certify the required energy savings in order to claim the deduction.

The commercial building deduction allows taxpayers to deduct the cost of energy-efficient property installed in commercial buildings. The amount deductible may be as much as $1.80 per square foot of building floor area for buildings that achieve a 50 percent energy savings target. Other deductions are also available below the 50 percent target.

Before claiming the deduction the taxpayer must obtain a certification that the required energy savings will be achieved. Check out www.irs.gov and look for energy efficient certification.

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HUMAN RESOURCES

Overtime Lawsuits on the Rise

The Employment Standards Administration’s Wage and Hour Division (WHD) recovered more than $171.5 million in back wages in fiscal year 2006. That was a 3.6 percent increase from 2005. The trend is largely a result of violations of the Fair Labor Standards Act (FLSA) and the revised Overtime Security regulations.

The most common violations discovered by Department of Labor investigators included: employers paying a fixed sum for varying amounts of overtime; paying a fixed salary for regular workweeks exceeding 40 hours and employers waiving overtime as part of an employment agreement. To avoid trouble in your organization, consult a labor attorney or consult the Department of Labor’s Wage and Hour Division at www.wagehour.dol.gov or call the DOL hotline at 1-866-4-USWAGE.

The Paycheck Paycard

A new tool in payroll management may benefit both you and your employees. A “paycard” is like a debit card but it draws from your payroll account. A paycard can help reduce your bank fees and streamline your reconciliations. Employees without bank accounts will benefit the most because of the elimination of check cashing fees and the ability to access funds through ATMs and retailers. As you can imagine, there can be drawbacks for both employers and employees including extra fees, liability for stolen cards or overdrawn funds. Do your due diligence in researching a card that is appropriate.

The Quirks of Perks

Luring employees from an already tight labor force has left many businesses offering benefits that seem more suitable towards a spa rather than a place of employment. Some companies offer in-house gyms, car washes and mandatory three-week vacations – all this on top of a healthy salary. Companies of all sizes are now hip to the fact that reputation, culture and perks beyond health insurance play a huge role in today’s employee recruitment efforts.

Having trouble finding employees? Begin by reviewing your benefits. Think you’re too small to compete. Think creatively. What arrangements can you make with neighbor businesses or business associates to create perks that will set your company apart in the eyes of current and prospective employees? For example, if your business neighbor is a mechanic, daycare center or gym could you make arrangements for a discount for your employees.

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MBA EVENTS OF INTEREST

Putting Priorities over Pressure Seminar

This seminar will show business owners how the use of a business plan can help them create comprehensive strategies for winning business, predicting spending and better managing their resources.

Attend this seminar to learn how to: establish priorities over pressures, open your doors to new customers, collect money from clients, verify that your pricing and profits are appropriately competitive, decide how many hands and minds you need to effectively run your business and see your business from above.

Tuesday, February 20, 2007
8:30 AM to 10:30 AM
American Executive Centers - Plymouth Meeting,
600 W. Germantown Pike, Ste. 400, Plymouth Meeting, PA
Free for MBA members, $25 for non-members, includes credit towards membership (must be paid in advance)
Sponsored by Sun East Federal Credit Union
Reserve by Wednesday, February 14, 2007

Presented by: Bruce P. Murray is president of Success Support. The company provides support for owner leadership skills as the prime factor in company performance accomplished through training, coaching and executive assistance. Mr. Murray’s background includes leadership of psychological healthcare multi-disciplinary teams in non-profit and for-profit enterprises, and leading corporate transitions of multiple business units to respond to marketplace changes. He speaks on skill development for business leaders and using core psychological principles to improve the outcomes of business and personal relationships.

FACTA, HIPAA, Gramm-Leach-Bliley, and Your Business Seminar
The ABC’s of Privacy Laws and How They Affect Your Company

As a business you may be required to comply with certain laws and regulations. At this seminar we’ll discuss what these laws mean to you, what happens if you don’t comply and how to implement an Affirmative Response Defense System.

You’ll learn: the stats behind why identity theft is such a hot topic, what legal threats does your business face due to your interaction with personal information, how to protect your employees’ and customers’ private information and what a reasonable security program involves for your business.

Tuesday, March 6, 2007
8:00 AM to 10:00 AM
MBA Conference Room
867 Sussex Blvd., Broomall, PA
Free for MBA members, $25 for non-members, includes credit towards membership (must be paid in advance)
Sponsored by Sun East Federal Credit Union
Reserve by Wednesday, February 28, 2007

Presented by: Eugene Bell is a regional vice president, group benefits specialist and identity theft consultant with Pre-Paid Legal Services. He has assisted hundreds of individuals and businesses in developing proactive measures against potential fines, fees, lawsuits and a myriad of problems that can arise from identity theft.

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Unless specifically indicated, MBA does not intend mention of companies, products or services discussed in this publication to be construed to be endorsements. The information in this publication is offered as examples that may be useful to our small business readers. Please consult with an industry professional before implementing any of the tips or subscribing to any of the services described above.