Vol. 14  No. 4    
April  2015  
Big Ideas for Small Business Newsletter

"The question isn't who is going to let me; it's who is going to stop me."

~ Ayn Rand (1905 - 1982), Novelist and Philosopher

Health Coverage for Your Business: Debunking 5 Myths

Businesses with fewer than 50 full-time employees are exempt from the employer mandate under the Affordable Care Act ("Obamacare"). However, even these small businesses want to offer health coverage if possible to keep their employees healthy and to attract the best talent. In an effort to do this, some employers may fall victim to myths that can derail their goals and result in unintended consequences.

The following list has been prepared with the help of Victoria Braden, CEO of Braden Benefit Strategies, Inc.and a certified PPACA agent (explained later), to clarify the rules for you, the small business owner.

Myth: I can lower my premiums by hiring only healthy workers and keeping them that way.

Reality: Medical conditions have no impact on health insurance today. Your costs depend on the age of workers and where they live. (All you need for a quote are their date of birth and home zip code.)


Myth: I'll be penalized if I drop health coverage.

Reality: There is no tax penalty for dropping coverage, or failing to offer it; the employer mandate impacts only larger companies (50 or more full-time/full-time equivalent employees). In fact, dropping coverage may prove advantageous to staff members who can obtain subsidized individual coverage. An employer offering affordable coverage for an employee may prevent the employee's family from qualifying for subsidized coverage. Help employees understand that they may be better off by explaining the business decision and the fact that subsidized individual coverage through the exchange may cost less than what they would have contributed toward employee coverage.


Keep Reading... 

The Best Way to Get Legal Assistance


You can't run a business without legalities, and understanding and complying with them require expertise that you may lack. The type of assistance you use depends on your situation (the level of expertise needed to handle a matter), cost, and your abilities.

Here are your options:

DIY

DIY, or doing it yourself, depends upon the matter you want to handle and how much time you can devote to it. You probably don't want to represent yourself in a lawsuit but you might be comfortable finding legal answers to routine questions (e.g., what you can ask a job applicant or what business documents to file with the government).

To find answers:
  • Contact state/federal agencies. Note the name of the person giving you advice in case any disputes arise later.
  • Find help from trade associations and other membership services. For example, NFIB's Small Business Legal Center has a wealth of reliable legal information that can be useful to you (whether or not you are an NFIB member).

Keep Reading...
Are You Ready for EMVs?  
No, this is not a brand of car or model type. EMVs, which stands for Europay, MasterCard, and Visa, is a chip-and-pin technology for credit/debit cards. Also referred to as smart cards, EMV technology replaces the current strip that appears at the back of cards in the United States (Europe and most of the world went EMV years ago). Canada made the switch in 2008 and saw a dramatic decline in credit card fraud.

Here's what you should know about EMV and how to get ready to accept this new payment technology.

Overview of EMV and merchant liability

EMVs are designed to make things more secure for the cardholder by means of a number of technologies the chip enables. This security applies to those who present their cards in person; merchants that process only online transactions (i.e.., don't swipe cards) need not be concerned.

From the merchant perspective, changing to EMV-acceptance terminals is necessitated by a shift in liability that's about to occur. At present, the cost of a fraud (e.g., erroneous purchases on a credit card) is borne by the credit card processor (e.g., the bank or other processor). However, starting October 1, 2015, liability shifts to merchants that do not process transactions using EMV technology.

 

Keep Reading...

It's a Fact!

Limited liability companies proliferate

That's the conclusion that can be drawn from IRS statistics about partnership returns. For 2012 (the most recent year for statistics), there were about 3.1 million returns filed (up 33.9% over the prior year), covering more than 25 million partners. Of these, domestic LLCs made up 65.3%. It was the 11th consecutive year that LLCs accounted for the majority of partnership returns.


Our Readers Ask

Q:  My business income fluctuates substantially from year to year. This past year was very good, but the previous year was not. Can I income average for income tax purposes?

A:  The option to income average at this time is limited to farmers and commercial fishermen; other business owners are out of luck. Income averaging used to be available to all individuals but was ended by the Tax Reform Act of 1986, which reduced the number of tax brackets to two.

book_review

Book Review

 

The Manager's Guide to HR, Second Edition
Max Muller ~ AMACOM ~ Hardcover: $24.95

Don't let the title fool you. This book isn't just for companies large enough to have a full human resources department; it is a must-have for every small business owner with one or more employees.

Muller explains the right thing to do for everyday actions. It covers hiring, firing, performance evaluations, documentation, benefits, and more. For example, it explains how to figure overtime so you won't get into trouble with the Department of Labor or your state labor department. It has a good explanation of various federal labor laws you should know.

This second edition came out in 2013, and I find that I use it regularly to answer staff-related questions. Especially helpful is the chapter on documentation and records retention, which includes various templates and copies of government forms you should use.

I'm honored that my book has been nominated for a Small Business Trends Book Award! I need your votes -- hurry, voting ends April 2. 

Many thanks for your support!  
In This Issue
Health Coverage for Your Business: Debunking 5 Myths
The Best Way to Get Legal Assistance
Are You Ready for EMVs?
It's a Fact!
Our Readers Ask
Featured Book Review



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Did You Know?

You'll find all my radio interviews on wsRadio.com.
Listen anytime and hear interviews with key small business owners and exceptional entrepreneurs to help you in your business today!
AND ...
My radio conversation with Amy Wilkinson, author of The Creator's Code, and my conversation with Representative Steve Chabot, Chairman of the House Small Business Committee can be found here.
 



Barbara's Books 
This updated book, which has been in publication for 20 years, is geared for year-round tax planning as well as for preparing 2014 tax returns.

Celebrating its 11th edition, this book is for individuals who want to maximize their deductions, credits, and other tax-saving opportunities on 2014 income tax returns.

Important: Both of my tax books include a free online supplement that explain extensions by Congress on favorable rules that expired at the end of 2013 but now apply for 2014 returns.

Written for the self-employed, this book is full of crucial tax help,  planning strategies, and money-saving tips you'll want to know now!