Idea of the Day^®

When you hire a worker, you effectively have an agreement that you’ll pay the worker for the work performed and treat the worker fairly. But depending on the nature of the worker—skilled, management, etc.—and the nature of your company, you may want additional agreements. Agreements are really contracts reflecting terms and conditions that each party understands and the breach of which can result in consequences. So, which agreements (contracts) do you want or need with your employees and what’s the best way to handle these agreements? Which agreements with your employees are advisable? Most employees in the U.S. are “at […]

With National Small Business Week recently passed, it’s a good time to look at how business owners appear on their personal tax returns. The IRS’s Spring 2022 Statistics of Income Bulletin has data on 2020 returns.  Here are some highlights for a tax portrait of business owners: Business income and losses reported Of the 164,187,262 federal income tax returns filed for 2020, 27,455,060 attached Schedule C to report non-farm income or loss from a sole proprietorship (farming income is reported on Schedule F discussed later). Schedule C is also used by independent contractors, including those who work in the gig […]

Under the federal Fair Labor Standards Act (FLSA), you must pay workers subject to minimum wage rules for the time that work is performed. This rule applies whether they’re working at your company site, in their homes, or on location. This simple statement is more complex when you try to define whether the time spent on certain activities falls within FLSA requirements. Look at various scenarios: Commuting Employers don’t have to compensate employees for the time they take to get to and from work each day; commuting isn’t treated as work. This is so regardless of the length of their […]

The pandemic has been stressful. Inflation is taking its toll on everyone. Crime, politics, you name it…all are contributing to challenges to mental health. May is Mental Health Awareness Month, so it’s a good time for companies to focus on this issue for their employees. There’s a good reason for this because according to a recent survey by JobSage, more than one in 4 employees have quit their jobs during the “Great Resignation” because of their mental health. To retain employees and keep your workforce happy and healthy, understand the problem and what you can do about it. What employees […]

It’s common for business owners to pay various expenses from their own pockets. It just may be easy to do. But it can impact who takes the deduction for these business expenses. The entity used by your business dictates this…but you can change the results with reimbursement arrangements. Impact of your legal entity on deducting out-of-pocket expenses Say you’re out to lunch with a client and pick up the tab on your personal credit card. What now? If you’re a sole proprietor…claim the deduction on Schedule C. The same tax treatment applies if you are an independent contractor or a […]

Getting insurance is an integral part of running a business. Some insurance is mandatory, some is highly advisable, and some is merely good to have if you can afford it. Understand which insurance to get when starting out and consider some ideas you can use to make it affordable. Understand which insurance to get for your start-up Must-have insurance There are certain types of coverage you’re required to carry by federal or state law, depending on your activities. If you have employees…you must have unemployment insurance. This is collected like a tax by the federal government (called FUTA) and your […]

Mother’s Day 2022—the second Sunday in May each year—was proclaimed by President Woodrow Wilson “as a public expression of love and reverence for the mothers of our country.” It also serves as a good reminder to employers that working moms should be honored all year long with policies and practices that support their situations. The pandemic highlighted the strain on many working moms during the lockdown when they had to manage work and their children’s remote learning. In fact, 1.1 million women left the workforce entirely, many citing childcare demands as their reason. So, what can employers do now to attract and […]

In the business world, organizations have to create and maintain data on various platforms to ensure accuracy. Most companies handle data regularly by storing and sharing it digitally — and sending the stored information from databases. In fact, 44% of firms share data continuously. However, this can lead to mistakes, negatively impacting the organization. Yet, companies can prevent and resolve these issues quickly by maintaining data properly. Here’s your guide to data integrity. What Is Data Integrity? Data integrity is the maintenance of data, ensuring it’s accurate, consistent, and complete. Organizations must have data integrity to maintain regulatory compliance and […]

May 2-5, 2022, is National Small Business Week. It is a time to recognize the important contributions that small businesses make—to their families, their employees, the economy, various causes, and more. It’s also a time to recognize the achievements of some specific businesses and owners. This year’s theme for the week: Building a Better America Through Entrepreneurship. There’s a virtual summit with events you may be interested in. National Small Business Week is also a good time to see where things stand in this post-pandemic era. Profile of small business in the U.S. How many small businesses are there in […]

Walk down Main Street and you can’t help but notice “Help Wanted” signs in a great number of shops, restaurants, and other establishments. NFIB’s Monthly Report found that inflation is now the top business problem for small businesses, but labor issues remain a close second. Forty-seven percent of owners had job openings they couldn’t fill. Internships have historically been summer options for filling slots while employees take vacations. For the past two years, the pandemic has put a damper on the use of summer interns, but things are changing now. (The following is adapted from a pre-pandemic blog about summer interns.) […]

Starting a business usually requires full focus on company activities, leaving little time and money for just about anything else. But if you’ve become a successful business owner, maybe it’s time to think about giving back. I’m in that position now and have thought a lot about how to give back. Here are 5 ways for business owners to give back: 1. Mentoring It’s a no-brainer to be a mentor. You can share your knowledge and experiences with: Employees. A recent Forbes article listed 9 ways you can act as an informal mentor to your employees. One important way: be approachable […]

Since the COVID-19 pandemic, remote-based work has become the norm for many organizations. In fact, statistics show that 36.2 million Americans will be working from home by 2025. Now that companies are shifting to remote work, many businesses need to establish effective virtual training programs. But how can managers quickly adapt to online learning for remote training and development? To maximize productivity and outcomes, managers must utilize these remote training methods for best practices. 1. Choose an Appropriate Delivery Model When using the term remote training, people typically think of online meetings. While this is an effective model, it isn’t […]

On March 16, 2022, the Federal Reserve raised its federal funds rate (referred to as the fed funds rate) for the first time since December 2018 and is expected to have additional increases before the end of the year, depending on the performance of the economy and rate of inflation. The rise in the benchmark interest rate by the Federal Reserve has a trickledown effect on your business. Some of this may be direct while some is indirect. It’s likely this isn’t the first time you have been in this situation because interest rates have been higher in the past, which […]

COVID-19 started a revolution in remote work arrangements. Initially, workers were forced to work from their homes because of government-mandated shutdowns. Then, workers continued working remotely because of preference. Due to the tight labor market, many employers have agreed to this work arrangement to retain their staff and hire new workers. There are certainly many benefits to a company in supporting remote work—the ability to hire talent wherever located, offering a valued employee benefit, and downsizing company space to save money. But there are some added tax problems for employers having remote workers. Some added tax problems for employers to […]

When you launch a business, you may need one or more employees to help you operate. Or maybe you’ve been in business and have handled every aspect on your own, but now want help. Your first employee may be you if your business is incorporated and you provide services. Having an employee—even yourself—means various tax and regulatory responsibilities. Here’s what to know when hiring your first employee.  Hiring process Get ready to become an employer by obtaining an Employer Identification Number (EIN). You get this from the IRS and can do it easily online. You’ll also need a state unemployment […]

When you think of Spring cleaning, what may come to mind is straightening out your files, cleaning up your desk, and washing down desktops and equipment. But this time of year is ideal to apply the same cleanup thinking to the big view of your business. 5 ideas to consider for the big picture view: 1. Reexamine your goals One of my favorite quotes from Antoine de Saint-Exupery (author of The Little Prince) is “A goal without planning is just a wish”. But you need to start with a goal. Throughout the pandemic, many small business owners were in crisis […]

Inflation is making it costlier to do business. Many small businesses are reluctant to raise prices or hike them high enough to maintain their profit margin. An alternative for remaining profitable is to reduce costs and be frugal. Here are 25 ways you can cut expenses without hurting your business. Some are drastic, some are modest; all need to be tempered for your situation. These are in no particular order of importance or cost savings. 25 ways to cut business expenses: Offer no/low cost fringe benefits to employees. In this tight labor market, you need to offer a menu of […]