Typically, things like prenuptual agreements are way out of my realm but an article from the Baltimore Sun published in Sunday's Seattle Times struck me as something my business clients might want to keep in mind as they tie the knot. Prenuptual agreements first help the couple to understand the other's assets and liabilities and to discuss finances prior to commingling their assets. It also, of course, helps determine how things will be split if the marriage breaks up. Business owners may want to consider a prenuptual agreement to ensure their business is not broken up or dissolved in the case of divorce. It's certainly not a popular topic among the betrothed but will protect your business in the case that the unexpected happens.
After lagging the rest of the nation in number of payroll employees during the recession, Washington and Oregon are leading the nation in job growth now. Economists often look at number of payroll employees versus the unemployment rate to gauge the health of the economy. Unemployment did increase from January to February but February had the largest growth in payroll workers Washington has seen in 8 years. Despite caution from the Office of Employment Security that the growth is no sustainable, it is good news for small businesses who are dependent on a strong local economy. Another important note is that a quarter of the new jobs in February were in the construction industry. Source: Seattle Times
Two articles caught my eye this week - both related to employees. Firstly, the staggering figure that 43% of resumes contain significant factual errors. It's bothersome that so many people are lying on their resumes. For your business, it could mean the difference between hiring someone who has the necessary experience and someone who plans to 'wing it.' Not exactly what you have in mind when bringing on an employee. Check out some tips on how to dig deep enough to find the truth in Inc.'s article Catching Resume Liars. The second article was on creative compensation to help you lure and keep employees in a competitive marketplace. These strategies are particularly important for small businesses where creative benefits may be easier to dole out than cold, hard cash which may or may not be flowing at the time the employee is hired. See Inc.'s article Compensation Strategies that Work. Remember, you do need to be careful that the benefits or creative compensation is clear to both parties and based on measurable performance. An employment agreement is necessary regardless of the compensation structure but creative compensation must be spelled out in the agreement and the agreement should be amended or alternative documentation put in place if the compensation changes.
For many home-basd entrepreneurs and small businesses trying to build a big presence on eBay, inventory is a big issue. Having a house full of what you are selling can be tedious. Some are turning to local businesses who have inventory surpluses and who will hold the inventory until it's sold. The entrepreneur is then free to sell the products online and stop by the warehouse to pick up what has sold. A recent Business 2.0 Magazine article "Retail Without the Risk" describes such a business that is grossing $15K a month. Maybe it has some ideas to help you!
The IRS has implemented a special tax filing break for small employers effective January 1, 2006. It allows employers who expect annual employment taxes to be less than $1000 (which amounts to about $4000 in wages) to file an annual Form 944 rather than the quarterly Form 941. The IRS sent letters to businesses that qualify in the month of February. For more information, see the Inc. column on Small Employer Taxes or the IRS Form 941 Employer's Annual Federal Tax Return.
Disclaimer: I am not a tax attorney and not providing tax advice in this posting. Contact your tax professional for guidance.
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