 WELCOME
What's the Big Deal You May Ask
Small businesses are bombarded constantly with new laws and regulations, tax mandates and updated technology. How to make sure MBA members are continually in the loop is one of the many challenges your association faces.
Recently I heard a member tell us about his success and how he achieved it. He was very happy to report that his 1099 employees were producing lots of "widgets." (We'll call them widgets for privacy's sake)
What's wrong with that sentence? Trouble brewing…
A 1099 is a form used for "Independent Contractors." Many employers rely on independent contractors from time to time when companies feel a need is there. There are lots of benefits to using a contractor as opposed to an employee. But there are lots of reasons not to.
So what's the big deal? There's an important distinction between an employee and an independent contractor because it affects how you pay taxes, withhold and pay Social Security and Medicare taxes and pay unemployment taxes. And if a business misclassifies an individual as an independent contractor, there may be a legal bill for you too.
Details explaining the differences can be found on mbainc.org. Hope to see you there.
Libby Beatty, Chair
MBA Board of Directors
NEWSWORTHY
The Internal Revenue Service released instructions to help employers implement the 2011 cut in payroll taxes, along with new income tax withholding tables that employers will use during 2011.
Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduced Social Security withholding will have no effect on the employee's future Social Security benefits.
The new law also maintains the income-tax rates that have been in effect in recent years.
Employers should start using the new withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011 but not later than Jan. 31, 2011.
Source: www.IRS.gov
 BACK TO TOP
MARKETING
Boosting Your Referral Rate
If your referral system has lost its steam or needs a new direction, here's how to inject it with new life:
Testimonials: When you show potential customers testimonials from your current clients, ask them if they would create a similar one if they are satisfied with your work.
Create a Network: Create an exclusive network based on a short list of trusted business contacts. Ask your contacts to suggest other businesses to be included and use that information to create an online directory.
Sponsor a Speaker: Speakers that are promoting their new book or products will jump at the chance for publicity. By sponsoring a lecture or seminar you can collect targeted client data and mingle with potential customers.
Get the Most from your Airtime Budget
You may think that radio advertising just isn't within your budget, but you could be wrong. With a little know-how and the right negotiating you could find your new radio ad putting your business's name on the mind of local listeners:
- Ad Creation: Many radio stations will offer to produce an ad for you as part of the negotiations. If you need one created it could cost from $1,500 to $3,000.
- Ad Frequency: "Short Duration" ads can last from 5-30 seconds and are typically cheaper. "Run of Station" ads are lower priced and are rotated throughout the day without specific air times. "Fringe Ads" are run during time when ratings are lower making the cost lower.
- Promotional Opportunities: Promoting an event or a program helps add value to your radio campaign budget. In addition to getting your ad aired you could be allowed an in-person appearance to give a demonstration or the chance to connect with a DJ who could be convinced to plug your business.
BACK TO TOP
YOUR FINANCES
Tax Relief, Unemployment Reauthorization And Job Creation Act of 2010: What Does It Really Mean To You?
By Randy Steen, Esq.
On December 17, 2010, President Obama signed into law new H.R. 4853. A few items affect most of us and should be highlighted:
- For the next 2 years income tax rates will remain the same; ranging from a minimum rate of 10% to a maximum rate of 35%
- Tax rates for long term capital gains and qualified dividends will remain at a maximum of 15% for the next 2 years
- The employee portion of payroll tax is cut by 2% for 2011. Therefore the Social Security tax rate will drop from 6.2% to 4.2%. The employer portion of the payroll tax does not change
- The Alternative Minimum Tax (AMT) patch is extended for 2010 and 2011
- Long term unemployment benefits will be extended for an additional 13 months
Click here to read the full article.
The preceding article was copied with permission from the website of MBA member Robert Bovarnick, Esq. Call Rob at (215) 568-4480. Internal Revenue Service Allowing an Extra Day to File
The Internal Revenue Service opened the 2011 t ax filing season by announcing that taxpayers have until April 18 to file their tax returns. The IRS reminded taxpayers impacted by recent tax law changes that using e-file is the best way to ensure accurate tax returns and faster refunds.
Taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file this year. Taxpayers requesting an extension will have until Oct. 17 to file their 2010 tax returns.
Source: www.IRS.gov
BACK TO TOP
FOR THE HOME-BASED BIZ
Home Biz: Guidelines for Outsourcing to Subcontractors
As your home biz grows you may find yourself scrambling for help. If you're not ready to hire employees and you need to keep overhead low, subcontractors are a feasible alternative:
Seek Quality: The work of the subcontractor is a reflection of your business, so don't shop on price alone. Look for reputable subcontractors before you need them so you can familiarize yourself with their experience. The quality of your work should be reflected in their work.
Written Contract: A contract with a precise deadline and delivery date is essential as it is hard to watch over the subcontractor's entire process. If they drop the ball, the sub can be held accountable, and you may be able to salvage the relationship with your client.
Honesty Policy: If you decide to hire subcontractors be sure to tell the client beforehand. Most clients won't care if you are clear about the reasons you are outsourcing.
Hone Your Home Business Tactics
The following are organizational tips that will help you ma ke the most of having a home and work life that can sometimes be too close for comfort:
- Long/Short Term Goals: By defining your long-term goals you give yourself an overall plan. The short-term goals make the long-term goals more manageable.
- Schedule Room: Be prepared for the unexpected by leaving some space in your schedule for business, family and personal issues that arise when you are so close to home. Also, by deciding on the times you will need privacy for your business, you can avoid hurt feelings and distractions.
- Combine Tasks: If you need to make deliveries or visits to clients, try to create time to fit in your personal errands.
BACK TO TOP
HUMAN RESOURCES
Handling Employee Complaints
No matter the size of your business, having an employee complaint policy is a good way to protect your business and stay aware of issues that affect productivity.
Here's what you need:
- Complaint Channels: Whether it's a phone call, in person, e-mail or letter; be sure your employees know how complaints should be handled.
- Your Investigator: Try to pick the person with the greatest distance from the staff to help look into the complaint. In smaller businesses the manager or partner may be your only choices.
- Solution: If the allegation is serious like harassment or stealing, the parties involved should be addressed directly and privately. If the issue is broader and affects more than one staff member, it may be better to address the issue in a meeting or memo.
- Prevention: Once an issue has surfaced, be sure your company policies and manuals are amended to include proper protocol to help prevent future occurrences.
BACK TO TOP
IT
The Online Super Store for Small Business Apps
Zoho is a customer-friendly service that offers 22 hosted applications for small businesses. Zoho's goal is to provide small businesses with software that allows work to be done in one place. You can join Zoho for free and access most of their software for free up to a certain level. The idea is that as a business grows, more and more of Zoho's services can be used without breaking the bank. And since Zoho is a web-based service, it can be accessed from anywhere. Zoho's business platform functions like a dashboard allowing you to view and manage all of your subscriptions and saved data. Zoho business also allows administrators to manage passwords and accounts across different office locations.
Tech Tools
The following are a few miscellaneous sites that may help b usinesses in various situations:
99 Copywriters: This site helps find copywriters by posting projects, allowing freelancers to bid. It's free to sign up and, once you pick a writer, you pay half up front. The rest is paid upon completion of the project.
Ninite: This program helps transfer all the free Internet software you currently use and reinstall on a new computer, quickly and easily.
Plastic Jungle: This site lets you buy, sell or exchange gift cards. It's free to join and shipping is free. Turn unwanted gift cards into cash!
BACK TO TOP
NEW MEMBERS
When our member base increases there is more of everything: more creative networking, more benefits and more experienced, enthusiastic business owners. All move our members toward growth, success and the entrepreneurial spirit.
Click here to meet our newest small business partners.
BACK TO TOP
MEMBER NEWS
MBA member Sun East Federal Credit Union announces the opening of a new branch in Springfield, Delaware County, PA. Visit the new location in Olde Sproul Shopping Village, and mention that you are a member of MBA. Your membership means automatic membership in Sun East!
BACK TO TOP
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.
|
