Running a “Lean” small business

Recently there have been quite a few networking meetings in our area. Many of the themes of those meeting were how small businesses could operate in the slow economy. The majority of the solutions included increased time and effort in seeking out new businesses. The solutions also leveraged technology to improve the flow of the small business operations.

Technology driven workflow solutions should be an integral part of a small business owner’s plan for the future. These solutions can improve small business operations in the areas of business development, marketing, finance and accounting. Technology may be the key to operating a lean small business during these rough economic times.

Keeping Your Business N Synergy

Employee or Independent Contractor….IRS knows

For many small business owners the mistake of misclassifying employees as independent contractors (IC) can be a costly one. When one factors the interest and penalties for not withholding taxes, it can cost some small business owners the business itself. The IRS is focusing more efforts on ensuring compliance with the laws regarding employees and IC’s including partnering with states to share payroll tax data, better matching programs that will match Form 1099’s with payments, and increased audits of payroll data.

From the employee/IC side of things, any taxpayer that may think that an employer is misclassifying them as an IC can file Form 8919 with their tax return. This will allow the taxpayer to avoid paying self employment tax on their earnings. Check with your tax advisor for details of who an employee is versus and IC.

Keeping Your Business N Synergy

Planning in Economic Downturns

It has been about a month since the last tax return was filed for tax year 2007 (excluding those that filed extensions) and many taxpayers are relieved that the stress is over. Now is a great time to consider mapping out a strategy for 2008. Economic downturns coupled with rising consumers prices, make tax planning an important part of your over all savings and investment plans.

For small business owners , Microsoft’s Small Business Center provides a short but informative article on ways to survive during…dare I say the “R” word recession. Feel free to post any additional ideas that you would like to share.

Keeping Your Business N Synergy

The Ole Give and Take

By now many taxpayers are in the process of receiving those economic stimulus payments from the IRS. This is under the assumption that you have filed your tax return for 2007. If you have not it is important to file your return before the extension deadline to ensure receipt of your payment in 2008. So far about 7.7 million checks have been sent out. Be sure to check the IRS website for answers to any questions you may have regarding your economic stimulus payment.

As the government sends you a stimulus check many ponder how they will spend it. More than likely the money will go right into your gas tank. The taxpayer is caught by the ole give and take again.

Keeping Your Business N Synergy

Know the Rules for Summer Help Hires

Now that the spring has sprung, summer can’t be too far away. This will bring many young job seekers, looking for temporary work that the summer months bring. It is important for the small business owner to know the rules when hiring in the summer. Here are a few tips to get your business’ summer search started:

1. Withholding taxes is done on ALL summer employees (yes summer help is considered an employee)

2. Parents with children can allow them to work in the business from the ages of 14-21

3. Check state labor laws for additional details regarding summer help.

Hope the information puts your business on the right track to a healthy summer season

Keeping Your Business N Synergy