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Time Is Running Out to Claim This Small Business Tax Credit

December 11th, 2012 ::

By Karen Axelton

It’s hard to believe, but many returning military veterans have a hard time finding civilian employment once they return from active duty or deployment. Your small business can help a veteran and enjoy tax credits at the same time thanks to recently expanded tax credits created by the VOW to Hire Heroes Act of 2011.

There’s one catch–your small business needs to act soon. Under the newly expanded Work Opportunity Tax Credit (WOTC), employers can receive thousands of dollars in tax credits, but only if the veteran hired started work on or after November 11, 2011, but before January 1, 2013.

The VOW to Hire Heroes Act added two new categories to the existing qualified veteran targeted group and expanded the WOTC to include certain tax-exempt employers. The credit may be as high as $9,600 per qualified veteran for for-profit employers or up to $6,240 for qualified tax-exempt employers.

In order to be considered a qualified veteran, the individual must:

  • Have served on active duty (not including training) in the U.S. Armed Forces for more than 180 days or have been discharged or released from active duty for a service-connected disability, and
  • Not have a period of active duty (not including training) of more than 90 days that ended during the 60-day period ending on the hiring date.

There are certain other qualifications that may apply, which you can find at the IRS’s FAQ page about the Work Opportunity Tax Credit.

The amount of the tax credit your small business or nonprofit organization is able to claim will depend on several factors, including how long the veteran was unemployed before being hired, the number of hours the veteran works and the salary or wages the veteran receives during the first year in your employment. If you hire a veteran with service-related disabilities, your business may be eligible for the maximum tax credit.

In order to claim the tax credit, employers will need to file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their state workforce agency within 28 days after the qualified veteran starts working at the business. To find your state workforce agency, visit the U.S. Department of Labor’s WOTC website. Visit the IRS website for additional details about qualification and paperwork required.

Image by Flickr user Sam0hSong (Creative Commons)

 

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Posted in Accounting and Taxes, Compliance, Small Business, small business, Workforce | No Comments »

How to Provide Useful Employee Feedback

December 6th, 2012 ::

By Maria Valdez Haubrich

If you don’t give your employees feedback on their performance—whether on a daily basis or, at least, at performance reviews—they’ll never improve. Then why do so many entrepreneurs do such a horrible job of providing feedback?

Many of us aren’t “people persons” and it simply doesn’t occur to us to tell people how they’re doing. Often, entrepreneurs are take-charge types who, if something isn’t done the way they like it, grab the reins and do it themselves, not giving their employees a chance to improve. Finally, some of us want to give feedback, but fear coming off too harsh with negative criticism.

How can you get over these hurdles to provide feedback that will help your employees learn, grow and improve their job performance? Here are some tips.

  • Set a goal. Consider what you want the feedback to achieve for your business. Don’t criticize someone simply to vent your frustration; always have a larger goal such as helping the person to improve, preventing customer issues, or increasing sales. By showing the employee that you have a larger goal in mind, feedback will seem less of a personal criticism.
  • Begin with the good stuff. Try to find something positive about the way an employee handled a task or situation. This will put them in a receptive frame of mind. After they have absorbed the positive praise, bring up any negative criticism. (Keep in mind, not every instance of feedback has to involve negativity. Rewarding employees with positive feedback for a job done well has a strong reinforcement effect.)
  • Provide detail. Give specifics as to what was done right or wrong and why this was helpful or hurtful. (“You answered the phone on the first ring, which conveys a positive impression to our customers. Great job!”) If you want the employee to change how he or she is doing something, be specific about what they should do and why.
  • Allow questions. Always make sure the employee feels comfortable asking for clarification on your feedback. You can ask them, “Does that make sense to you?” or “Do you have any questions about that?” to confirm that they’ve understood what you said.
  • Follow up. If you ask an employee to do something differently, pay attention to see whether they learn from the feedback. If so, comment positively on the progress. If not, continue to provide feedback until they get it right.

You’ll be surprised how much feedback can improve your business when it’s used correctly.

Image by Flickr user bpusf (Creative Commons)

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Posted in Small Business, small business, Workforce | 1 Comment »

Have You Thought About Your Succession Plan?

December 4th, 2012 ::

By Karen Axelton

Do you own a family business? Do you have a business partner (or more than one partner)? Do you hope to sell your business and retire on the proceeds one day so you can spend your time playing golf? If the answer to any of these questions is “Yes,” then you need to be thinking about a business succession plan.

A succession plan lays out how your business will run if you should leave the company, sell the company, die or be incapacitated. Much like writing a will, creating a succession plan is something many business owners put off because they don’t want to think about it. But much like failing to write a will, failing to draft a succession plan could destroy your business if unforeseen incidents occur.

Begin your successon planning by thinking about who you would like to have in charge if you’re no longer in the business. This might be your business partner/s, your spouse or a child who works in the business (or even one who doesn’t). If the person you’re considering is someone who might not expect to fill this role (like your spouse), talk to him or her about the issue and whether they have any interest in filling your shoes.

Put the right legal documents in place to ease the transition. Talk to your attorney and accountant. Your form of business will affect what documents are needed. For instance, how will your shares of the business transfer to your successor? Will a buy-sell agreement be needed in case existing shareholders don’t want to work with the successor and he or she needs to buy back their shares? Just like a will, you need documentation to ensure your wishes are carried out.

Another important step in succession planning is making sure the transition is properly financed. For example, a key man life insurance policy could provide the funds for your successor to buy out partners’ shares in the event you die. Your accountant can point out financial needs that may arise and how to fund them.

Part of the financial aspect includes planning for your retirement and how you will transfer ownership and assets in the business to your successor. Again, your accountant can guide you through options such as selling the entire business, selling your shares to the successor or partners, or even selling your business to your employees.

Last, but not least, think about what would happen if illness or accident left you unable to work for a while. This could actually be an opportunity to “test drive” your succession plan by having your successor work in the business. If he or she doesn’t currently work for the company, consider having the person do so at least part time to get up to speed, or otherwise familiarizing him or her with the issues of your role.

A good succession plan will ease your worries and your family’s worries about the future of your business. (If you have a family business, it can also smooth over concerns about who will take your place.) Don’t delay in setting one up.

Image by Flickr user chispita_666 (Creative Commons)

 

 

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Posted in Business Law, Compliance, Life Transition, Small Business, small business, Workforce | 1 Comment »

How Is Your Small Business Celebrating This Year?

November 29th, 2012 ::

By Karen Axelton

Does your small business have plans to celebrate the holidays? As the economy shows signs of improvement, the recently released 2012 American Express OPEN Small Business Holiday Monitor finds small business owners are feeling more festive than they did in 2011. Here’s how other entrepreneurs will be celebrating this year.

More entrepreneurs are giving their employees bonuses (35 percent, compared to 29 percent in 2011). Of those, 25 percent report plans to give out larger bonuses this year than they did last year, with the average bonus being 9 percent. Employers say the number-one reason for giving out bonuses is to acknowledge good work.

Employers will also be celebrating in style, with 40 percent of small business owners reporting that they plan to host a holiday party (up from 35 percent last year). Entrepreneurs say they will spend an average of $959 on their celebration, down a little from $1,029 last year.

But employees aren’t the only ones who will be benefiting from small business owners’ generosity this year. Over half of small business owners (57 percent) say they plan to give a contribution to charity this holiday season. About one-third will give money, one-quarter will make an in-kind donation, and about one-quarter will donate their time.

Giving thank-you gifts is also an important part of the holidays. More than half (51 percent) of small business owners plan to give gifts to clients and customers this year, up from 43 percent last year. On average, entrepreneurs say they plan to spend $958, a steady increase from $827 last year and $740 in 2010.

Maybe one reason for the festive plans is that a good number small businesses overall are feeling fairly optimistic, despite the tentative economy. Some 36 percent of small business owners overall, and 41 percent of small retailers, report that they expect “strong” holiday sales this season, while 19 percent of small business owners and 13 percent of small retailers expect their sales to hold steady compared to last year.

How will you celebrate the holidays with your clients, customers and employees this year?

Image by Flickr user caitlinator (Creative Commons)

 

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Posted in Customer Service, Small Business, small business, Workforce | No Comments »

Web.com Small Business Toolkit: Scavado (Talent Search Engine)

November 28th, 2012 ::

Scavado

Looking to hire in the New Year? According to Manpower, 49 percent of U.S. employers say they have difficulty finding the right people for open jobs. Scavado is a simple talent search engine that connects recruiters with top candidates without complicated search algorithms. Built by a veteran recruiter who needed her process for sourcing talent online to be more efficient, Scavado finds relevant results from all over the Web. It’s easy; all you need to do is enter a few keywords. Scavado costs $99 per user per month and helps you target the top talent you need.

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Posted in Networking, Recruiters, Resources, Small Business, small business, Workforce | No Comments »

Health Care Reform: Myths and Realities

November 27th, 2012 ::

By Maria Valdez Haubrich

While the news is full of big companies crying foul about health care reform now that President Obama has been reelected, how are small businesses reacting? The primary sentiment among small business owners is mass confusion, reports eHealth’s Fall 2012 Small Employer Benefits Survey.

The poll of small businesses and self-employed people found that 77 percent of small employers were holding off on their long-term expectations of how health care reform might impact their business. The biggest concern (held by 61 percent of small employers) was the cost to their businesses. However, 25 percent were struggling simply to understand what health care reform would mean to their companies.

eHealth took a look at the realities of health care reform and asked small business owners their beliefs and found a big disconnect. Here are some of the myths and realities.

Health Care Reality: Under the ACA, employers with fewer than 50 full-time employees are not required to buy health insurance for those employees.

Health Care Misunderstanding: Only two employers in the survey had more than 50 employees. However, one-third (34 percent) incorrectly thought they would be required to provide insurance for employees in 2014, and about the same number (35 percent) weren’t sure if they would be required to do so. Only 31 percent knew they will not be required to provide health insurance.

Health Care Reality: If you have fewer than 50 employees, you don’t face a tax penalty of any kind if you don’t provide health insurance for your employees. Employers with 51 to 199 full-time employees must pay a $2,000 tax penalty for each employee who buys health insurance through an insurance exchange. But they don’t have to pay taxes for the first 20 employees who do so.

Health Care Misunderstanding: Thirty-four percent (34 percent) of the employers in the survey thought they would be taxed if they didn’t offer health insurance in 2014, and 35 percent weren’t sure. Only 31 percent correctly said they wouldn’t be required to pay a tax for not offering insurance.

Health Care Reality: The Affordable Care Act calls for health insurance exchanges to be created in each state in 2014. Exchanges will allow employees to buy subsidized health insurance on the individual market even if they have a pre-existing medical condition. If you feel guilty about not offering insurance, this could ease your mind by making it easier for employees to get insurance on their own.

Health Care Misunderstanding: The vast majority of small business owners (78 percent) admit they aren’t familiar with health insurance exchanges or how the exchanges might affect their businesses.

Despite their uncertainties, the majority (68 percent) of respondents did not plan to stop offering health insurance to their employees. About one-third said they would consider dropping insurance, but just 3 percent said they definitely plan to do so.

Image by Flickr user twbuckner (Creative Commons)

 

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Posted in Business Law, Compliance, Small Business, small business, Workforce | 1 Comment »

Web.com Small Business Toolkit: WorkSimple (Employee Management)

November 22nd, 2012 ::

WorkSimple

Are your employees hooked on social media? Do you catch them constantly updating their Facebook or Twitter status? Here’s a way to keep them engaged in their jobs and turn their love of social media to your advantage. WorkSimple is a social performance platform based on actual work and social goals throughout the work day. With WorkSimple employees can see what others are working on and how their role in the company affects the greater good and their fellow staff members. The platform encourages more feedback on work goals and an opportunity for support and coaching from other members of the team—and makes everyone accountable.

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Posted in Resources, Small Business, small business, social media, Technology, Workforce | No Comments »

Web.com Small Business Toolkit: Submittable (Resume-Sorting App)

November 12th, 2012 ::

Submittable

If you plan to launch a contest for your business in the near future; you’re hiring for a new position and have hundreds of digital resumes to vet; or your business simply deals with tons of digital documents, Submittable can help you make sense of the myriad files, get organized and bring some sanity back in your life. With resumes, Submittable allows you to rank resumes and then filter by factors such as criteria such as educational background and current job status. If you’re receiving entries for a contest, Submittable gives you an easy tool for applicants to use that also helps you keep organized. Use Submittable for other documents, too.

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Posted in Resources, Small Business, small business, Workforce | No Comments »

Web.com Small Business Toolkit: Family and Medical Leave Act Advisor (Health Benefit Website)

November 2nd, 2012 ::

Family and Medical Leave Act Advisor

Is your business required to offer employees the Family and Medical Leave (FMLA) benefit? If so, do you know which employees are eligible for FMLA leave, what entitlements and benefits are provided under the law, and in what situations FMLA leave can be used? All of your questions can be answered at the Department of Labor’s Family and Medical Leave Advisor website. FMLA covers everything from caring for a newborn to a sick relative to some military reasons, and it’s important to know the rules so your business is always in compliance.

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Posted in Business Law, Compliance, Small Business, small business, Workforce | No Comments »

Plan Now for a Great Company Holiday Party

November 2nd, 2012 ::

By Rieva Lesonsky

It’s November and although the holidays may seem far away, if you’re planning to have a holiday party for your small business, you’d better get moving on your plans. Hotels, restaurants and other party locations book up far in advance, so it’s not too soon to start thinking about this year’s holiday celebration. Here are some tips for keeping it festive while still under budget.

  1. Choose an off time. Booking your event on a weeknight or even during the day rather than a more popular time such as a Friday night can save you big bucks. You might even consider having a holiday luncheon and letting your employees take the rest of the afternoon off. You’ll save on menu items, drinks and venue rental costs.
  2. Host at home. If your company is small enough, your home is big enough and you feel comfortable enough with your employees, hosting your holiday party at your home is a great way to build bonds with your staff. It feels extra-special when they’re invited into your home, and you save money on venue rental to boot.
  3. Celebrate in the office. Depending on your staff and the “vibe” you want to create, having a party in the office can be just as much fun as going to an outside location—especially if you spend the money you’d normally spend on a venue bringing in better food, fun activities that your team will enjoy or otherwise creating a festive environment.
  4. Time it right. No rule says you have to have your holiday party in November or December. Consider hosting a New Year’s celebration in January instead—it starts 2013 off with a bang, saves you money and gives employees more time to spend on personal matters (like holiday shopping) during the already-busy holiday season. This can work especially well if, like many small businesses, the holidays are your busiest time of the year.
  5. Speech, speech! No holiday party is complete without the boss (that’s you) thanking the team for a great year. Personal recognition such as gift certificates, cash bonuses or actual gifts for each employee are always great, too. Top it off with a handwritten, personal card that tells each employee something you appreciate about them.

Whatever decisions you make about your company holiday party, “personal” is key to making the event fun, meaningful and memorable—so feel free to do things your way.

Image by Flickr user Mike_fleming (Creative Commons)

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Posted in small business, Small Business Success Index, Workforce | 2 Comments »

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