Although prospects of a double-dip recession in the U.S. seem to have receded, businesses remain wary. So do investors whipsawed by repeated volatile market swings. One bright spot: consumers showed a glimmer of confidence last month.
Here to provide some perspective is the latest issue of RBB News--our summary of important tax, business and financial news and opinion to help you see the bigger picture, and to make more informed decisions.
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In This Issue:
Rucci, Bardaro & Barrett, PC
The Right Size Accounting Firm
919 Eastern Avenue
Malden, MA 02148
420 Bedford Street
Lexington, MA 02420
7 Main Street
Atkinson, NH 03811
T: 781-321-6065
F: 781-321-7747
The U.S. unemployment rate remains stubbornly high, yet small companies are hiring considerably more than big companies, according to a survey by ADP. Since March, firms with 500 or fewer employees have added 60,000 jobs a month while large businesses have added nothing, the report says.
One reason for this may be that lending to small business by the nation’s largest banks is reportedly alive and well. Big banks extended $607 billion in loans to small businesses during the first half of 2011, just $45 billion less than the loans they held for all of 2010, reports the Washington Post.
Meanwhile, the decline of U.S. manufacturing may be greatly exaggerated, says a report by the Wells Fargo Economics Group. True, the job numbers have been shrinking for a decade. But thanks to technology and improving worker productivity, total industry output has been on a steady upward swing.
IRS offers break to employers who hire freelancers – If you’re a business owner who misclassified workers as freelancers rather than employees, the IRS has a new amnesty program for you. Read about it here, and then contact us to learn how the program may apply to your situation.
Three percent tax withholding rule repealed – In a rare show of bipartisan agreement, Congress voted to repeal the 3 percent withholding rule on payments to contractors – a particularly good piece of news for the construction industry. The requirements would have taken effect Jan. 1, 2013.
IRS allows tax break for bonuses – The IRS now permits an employer using the accrual method of accounting to take a deduction in the current year for a fixed amount of bonuses payable to a group of employees - even though he/she may not know which of the employees will receive a bonus or the amount of any particular bonus until after the end of the taxable year.
Understanding the variables of successful bidding – in Part Two of his series for construction business owners, RBB partner Sal Falzone writes about the importance of understanding the concept of “true break-even point,” and how it can improve a contractor’s chances of landing the jobs that are worth winning.
Considering global expansion? Look north – Canada took the top spot in Forbes’ annual look at the Best Countries for Business. The $1.6 trillion economy is the ninth biggest in the world, and grew 3.1% last year. Canada moved up from No. 4 in last year’s ranking thanks to its reduced corporate and employee tax rates.
Global expansion requires a global support network – RBB partners Bill Rucci and Paul Bardaro take turns extolling the benefits of the firm's membership in Russell Bedford International - a global network of accounting firms with a strong presence in North America - in a just-released video.
Mark Paquin spoke to over 50 North Quincy High School students interested in learning about the accounting profession as a career choice. His appearance was part of an outreach program sponsored by the Massachusetts Society of CPAs.
A by-line article by Sal Falzone on the roles fixed, variable and mixed costs in the bidding process appeared on the industry website ForConstructionPros.com. The article is the first of a two-part series on the elements of successful bidding.
As a member of the Medford Rotary’s program committee, Paul Bardaro invites RBB News readers to participate in the group’s 33rd annual Holiday Basket drive. Each year, the Rotary purchases, assembles and distributes boxes of food to local families in need. Details can be found here.
RBB is uniquely suited to handle assignments from many different types of businesses. Our size and structure allows us the flexibility to deliver superior service from a team assigned to your business and headed by a partner of the firm, and yet remain within your established budget parameters for either a specific project or an ongoing engagement. To contact us, call the above number or visit our web site - www.rb-b.com.
