The deadline for providing employees with their Form W-2 for 2020 and independent contractors who received at least $600 in 2020 with their Form 1099-NEC is fast approaching. Because January 31, 2021, the usual deadline is on a Sunday, the due date for 2020 forms is February 1, 2021. Here are some last minute things to know about these filing obligations. 1. You can send forms to workers electronically Instead of generating paper W-2s or 1099s, you can send an electronic version. However, this option only applies if you obtain prior consent from workers to receive their forms via email […]

As has been our practice in the past couple of years, we’ve adopted a theme for a monthly blog. This year’s theme: Recovery strategies. When the pandemic hit, most businesses that were able to do so scrambled to transition their employees to working remotely from their homes. Likely, many small businesses did this without adopting comprehensive policies to make the arrangement workable for employees while protecting the company from potential threats and addressing various issues. With the continuation of the pandemic, at least for the foreseeable future, it’s time for employers to adopt formal work-from-home policies or review existing ones […]

 The Consolidated Appropriations Act, 2021 (CAA), signed into law on December 27, 2020, changed some important rules impacting various employee benefits for 2021. With the new year underway, now is the time to review your retirement plans and other employee benefit plans to ensure compliance with law changes. Qualified retirement plans The CAA did not make major changes in the rules for qualified retirement plans. Remember that many of the changes were created by the SECURE Act at the end of 2019 and some of those changes apply in 2021. For example, required minimum distributions (RMDs), which had been […]

According to a study by Maven and Great Places to Work, companies that provide support for employees with childcare responsibilities have 5.5 times the revenue growth compared with companies that don’t. Here are some ways small business can do this with little or no cost. Parent-friendly policies Companies that want to be supportive to working parents must recognize the importance of this decision and implement policies that effectuate it. A list of the World’s Best Workplaces™ 2020, all large companies, shared a common theme: Employees reported they were able to take time off from work when they thought it necessary. […]

2020 began on a note of high optimism for small businesses. The NFIB Small Business Economic Trends in January 2020 showed an optimism rating of 104.3, among the top 10 of all readings in the 46-year history of the survey. Job creation jumped and finding qualified workers was the top issue for many small businesses. There was strong capital spending and the percentage of owners expecting increases in sales and inventories was higher than the previous month. What a difference a year makes! NFIB’s November 2020 report showed a decline in optimism and declines in most other factors. How do […]

2020 has come to an end. If you are still in business, congratulations. The statistics on small business closures are grim. Yelp found that 60% of business closures due to the pandemic were permanent. With the current new wave of COVID-19 cases and repeated government-mandated shutdowns, it can be expected that more small businesses will go under. If you have been unable to withstand the tsunami that was the pandemic, take heart because a new year presents new opportunities for those with an entrepreneurial spirit. Throughout this year, blogs have focused on preparing for economic change. Here are some thoughts […]

On December 27, 2020, a massive new law was signed by the President to fund the federal government through the end of fiscal year 2021 (September 30, 2021) and provide COVID-19-related relief to individuals and businesses. The new law is massive at 5,593 pages and is comprised of a number of different measures, including the COVID-related Tax Relief Act (which starts on page 1965) and the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (which starts on page 2042). The following is a brief checklist of provisions that may affect your business; they’ll be fleshed out in future […]

Last year, there were over a million shoplifting cases reported, with an average of $318 lost in each incident. But these are only the cases tracked by the FBI; most aren’t reported. A survey by Business.org found that 40% of small businesses saw an increase in shoplifting since the pandemic. Shoplifting is widespread, with 88% of small businesses having experienced a customer shoplift; 14% of incidents happened daily and 28% of incidents have turned violent. While in-store shopping has been way down due to the pandemic, consumers likely will return when it’s safe to do so. If you have a […]

A study has shown that CEOs who emphasize culture over other success metrics will thrive. This is a great message at a time when many small businesses are going under. The study focused on publicly-traded corporations, but the results apply equally to small businesses. Here’s why having this type of company culture matters and what you can do to achieve it. Overview Companies that have High-Purpose Cultures™ focus on employees and customers. gaping void Culture Design Group, the company that did the survey, says such companies realize: • Higher financial returns • Better customer satisfaction scores • Increased employee retention […]

What a new administration means for small business This year’s election results mean changes…a new administration and a new Congress. What affect this will have on small businesses is too early to predict, but it’s inevitable that there will be changes. Here are some possible changes to anticipate: Tax increases While the new administration promised to raise taxes only on high earners ($400,000 or more), it could severely impact small business owners who pay taxes on business earnings on their personal returns. For example, in a one-member limited liability company, the net profits are reported on the owner’s Schedule C […]