Early in the fourth quarter of 2021 is a good time to begin year-end planning. The sooner you get a jump on things, the more options you’ll have and the less stressed you’ll be. Line up your benefits package for 2022 While 2022 may seem a long time from now, it’s not too early to make firm decisions for the coming year. Health coverage. Decide now how you plan to handle health coverage for your staff in 2022. Will you buy group coverage (from a private insurer or through the Small Business Health Options Program [SHOP], assuming you have no […]

When you go into business with others, things don’t always work out as anticipated. Co-owners can disagree about the direction of the business and, as a result, one may want to leave the company. One owner may have a change in family situation or a desire to do something else. An owner may have health issues, become incapacitated, or simply want to retire. Or, as the pandemic has demonstrated, an owner may suddenly die (they don’t want out; they’re just out!). When an owner leaves the business, the departure triggers financial, legal, personal, and practical issues that need to be […]

Just about anything you do or say, or anything you don’t do or say, is potentially problematic from a legal perspective. There are so many rules and regulations that govern just about every mode of conduct for business. Violating a rule doesn’t mean you’re headed for a penitentiary. But it could result in lawsuits, fines, penalties, and a lot of time to address claims against you. It can also damage a business’s reputation and brand. Small businesses don’t have in-house legal counsel to advise them on every step, so what are owners to do? As the saying goes, the best […]

As the challenges of the pandemic continue and the hours of daylight get shorter, it’s understandable that you and your employees may feel fatigued, distracted, and perhaps mentally exhausted. Nonetheless, the company benefits when you and your employees are working at optimal levels and this can’t be done when you’re feeling down. Now’s the time to shake things up and re-energize. Here are some ideas to help to get you back to peak. Many are obvious or known, but it’s helpful to remind yourself to do it! 1. Get physical. Sitting in one place for a long time is enervating. […]

Late with filing a tax return with the IRS? Didn’t correctly figure and pay what you owe? Did something you weren’t supposed to do? Don’t worry. While the tax law has multiple penalties in place to discourage and punish mistakes, there are many ways in which you can get them lifted. In tax parlance, this is called penalty abatement. Generally, penalty relief falls into 4 categories: reasonable cause, penalty exceptions created in the Tax Code, administrative waivers from the IRS, and correction of IRS errors. The following is excerpted from my book J.K. Lasser’s Small Business Taxes 2022, which will […]

Dubbed “The Great Resignation,” employees are leaving their employers in record numbers. In April 2021 alone, 4 million people quit their stable jobs in search of something more fulfilling. With vacancies at an all-time high, employee retention is a priority issue now more than ever. If you are a small business owner, you likely wake up and go to sleep with the same question on your mind: what can I do to keep my employees happy so they’ll stick with me? Reward and recognition programs emerged at a time when companies, mostly in tech, were drawing and retaining employees not […]

Last month included National Small Business Week. Politicians are continually claiming to help small businesses. My website is dedicated to educating small business owners. So what exactly is “small business”? There’s no easy answer. Overview of the problem There’s no single definition of “small business.” The answers vary by government departments and agencies as well as banking, insurance, and other private-sector industries. Definitions may be based on: Number of employees Amount of revenue (often gross receipts) Amount of assets Government definitions Different departments and agencies use different definitions. The following is a sampling of some of the most common ones: […]

Usually, health insurance premiums are a one-way street; you pay them to the insurance company. But the insurance company may pay you—because of the rule on medical loss ratios (MLRs). It’s estimated that rebates paid to group health plan sponsors in 2021 disbursed in the Fall for the 2020 policy year are about $618 million. Additional amounts totaling $1.5 billion are payable to those enrolled in the individual market. Depending upon what you paid, the rebate may represent a nice infusion of cash for your business. What is the medical loss ratio rule and how do you treat any rebate […]

When the pandemic began, remote work arrangements were the only option for some companies to stay in business. Now, remote work arrangements—full-time or hybrid—have become the norm, with many companies deferring return-to-office policy until 2022. Telework, as it used to be called, offers benefits for both employers and employees. The pros and cons of remote work arrangements were explored in a blog that predates the pandemic; they remain the same. But there are risks that should not be overlooked. Here are some ideas for addressing selected risks associated with having employees work remotely. Physical injuries Workers are covered by workers’ […]

There’s no denying that, year after year, cybersecurity risks tend to increase in number and complexity. New York joined the growing list of states enacting legislation to try and regulate the use of private, personal data. The New York Stop Hacks and Improve Electronic Data Security Act, known as the SHIELD Act, is something businesses and individuals need to be aware of. What is the SHIELD Act? The New York SHIELD Act requires businesses to implement specific safeguards for New York state’s residents regarding their personal information. The act broadens New York’s security breach notification requirements to protect residents from […]