On January 16, 2020, the Senate passed the United States, Mexico, and Canada Agreement (USMCA), which is expected to be signed into law shortly. It replaces the North America Free Trade Agreement (NAFTA), which has been in effect since January 1, 1994. It is the first trade agreement ever to include a chapter dedicated to small- and mid-sized enterprises (SMEs). Here are some highlights of that chapter and others relating to SMEs (adapted from the governments FAQs): Trade opportunities The USMCA establishes information-sharing tools that will help SMEs better understand the benefits of the agreement and provides other information useful […]

The U.S. Department of Labor has issued a final rule on joint employers for purposes of the Fair Labor Standards Act (FLSA). Under this rule, which runs 164 pages, an employee can be considered to have more than one employer, each with responsibility to adhere to the FLSA with respect to paying at least minimum wage and adhering to overtime rules. This rule has significant ramifications for franchisees, temporary employment agencies, contractors/subcontractors, and some other small business owners. Here’s the rule and what it means to you. Overview of the joint employer rule When an employee works for one employer, […]

According to the American Institute of Stress, 80% of workers feel stress on the job. This stress causes problems for both the employee and the employer. For example, 62% of workers experienced neck pain by the end of the day and 44% had stressed-out eyes. It’s been documented that stressed workers have lower productivity and increased absenteeism; 19% have quit a position because of stress. For the sake of your employees and your company, think about how you can help employees reduce their work-related stress. 1. Set realistic job expectations Many employees feel overworked and underpaid. In a quest to […]

Business owners who are self-employed usually pay their taxes in four estimated tax payments for the year. The final installment for 2019 is due on January 15, 2020. The first installment of estimated tax for 2020 is due on April 15, 2020. Figuring estimated taxes correctly is important so you don’t overpay and have to wait for a refund or underpay, which can result in penalties.  In the past several years, some owners have deliberately underpaid estimated taxes because the IRS penalty was so low. But with interest rates rising, this strategy is going to be costly. Here are some […]

According to one scholarly paper, which examined the effects of employment on influenza rates, “the spread of the influenza virus is linked with higher employment, particularly in industry sectors with the highest levels of interpersonal contact.” In effect, recognize that if an employee infected with the flu comes to work, he or she could infect others. Instead of losing productivity from the employee who brought the flu to your workplace, now you have lost productivity from other employees. What can you do? (The following is adapted and updated from a blog post 6 years ago.) Encourage healthy workplace practices Staying healthy […]

There are many new rules for qualified retirement plans and IRAs that impact your business in the coming years. These new rules are contained in the SECURE Act, which is part of the massive spending measure (P.L. 116-94) signed into law on December 20, 2019. (A roundup of other business-related tax changes in the spending package was discussed in a previous blog post.) Some rules take effect on January 1, 2020, while others don’t start until after 2020. Multiple employer plans (MEPs) Two or more unrelated employers can join together in a pooled employer plan. This new option will allow […]

“I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.”   – Jimmy Dean. No one knows how the economy will change in the next 12 months. Most are predicting a good 2020, but some are cautioning about recession. We know from past experience that the experts don’t know any more than we do. Recall the dire predictions of a recession at the end of 2018 that drove the stock market down in December 2018. And it turned out that 2019 was a boom year. Because economic conditions always change, it’s essential […]

A while back Unum polled employees to determine which benefits they valued most. In today’s tough job market, small employers are challenged to offer a number of benefits in order to compete for talent with other employers…large corporations and small businesses. Nonetheless, there are many desired benefits that won’t break the bank. Here are the top 15 fringe benefits in demand and the tax and practical implications of offering them so you can decide which of these benefits to offer now. Paid family leave The poll found this employee perk to be the top one desired, with 58% identifying it […]

The number of self-employed individuals is growing substantially. FreshBooks’ Women in the Independent Workforce, 2nd annual report says that between 10 and 12 million women are expected to join the independent workforce in America over the next 5 years. The Bureau of Labor Statistics projected a 7.9% growth rate in self-employment over a 10-year period. Upwork and Freelancers Union reported in Freelancing in America: 2018 that there were 56.7 million Americans who freelance. My latest book — a revision of one published in 2013 This book is intended to help self-employed individuals understand back-office obligations, including taxes, banking, and insurance. […]

The 2020 Edition Book Review For more than 25 years, I’m proud to say my tax book for small businesses has been the go-to guide for owners and their tax advisors. The 2020 edition for preparing 2019 returns as well as tax planning for 2020 has been updated to incorporate new laws, court decisions, and IRS pronouncements. As has been my practice, I’ve written my own book review to explain the purpose of the book, what’s new, and what’s ahead. Why small business owners need a tax book If you’re like the vast majority of small business owners (86%), you […]