Save on Taxes by Hiring Your Children
You've heard that you can't have your cake and eat it, too. But
hiring your own family is one case when you can. Pay your minor or adult
children to work for your business, then write it off as an expense.
Many people are confused about whether it's legal to hire their
children and grandchildren. Follow my advice to satisfy both the IRS and
employment laws - while saving on your own taxes. Assuming it's a true
payment for services performed (and the paperwork is handled properly)
it's totally legal and acceptable to pay family members.
Minor Children Save the Most Taxes
Child labor restrictions don't apply to a parent (unless it's in
manufacturing, mining, or any hazardous occupation defined by the
Department of Labor) - even under 16. I hired my own daughters from the
ages of 7 and 9 without a hitch.
You need not pay withholding income taxes, payroll taxes (including
Social Security) and Workmen's Compensation (in most states) until the
child turns 18. Just remember to complete quarterly payroll tax returns,
as you must for any employee. Forget about paying federal unemployment
taxes until the child turns 21.
However, if your business is an S or C Corporation, you must pay Social Security and Medicare taxes regardless of their ages.
To Survive IRS Scrutiny
1. The children actually have to work
2. Pay them consistently
3. Pay them according to what you'd pay someone else
4. Keep detailed records
5. Issue a W-2 at year end and file a tax return for the child, even if no tax is owed
Example:
Wages paid to 13 year old child $6200
Less: Standard deduction for 2005 (5000)
Taxable income $1200
Tax Due (10% x $1200) $ 120
While for the parents:
Wages paid to the child $6200
Tax Savings (40% x $6200) $2480
For a net savings to the family of $2360
The income tax standard deduction is $5000 for every person in the
country, including each of your minor children. So unless you pay them
more than that, they won't have any tax obligation at all. And since
they really earned it, the "kiddie tax rules" do not apply.
When hiring adult family members you can justify larger salaries.
And they can participate in benefits like qualified retirement benefit
programs and fringe benefits (like medical insurance and childcare).
Working for You Teaches Children about Managing Money and Saving
The income has to be earned by the child, so the amount needs to
reflect the value of what's done. And the money does belong to them,
even if it's being saved for college.
Many of the benefits of involving your children in your operation
aren't tax-related at all. They're gaining practical experience,
learning the value of work, and maybe how to carry on the family
business down the road.
If you're wondering whether to trust my advice, I've sat on both
sides of the desk. I worked for the IRS, and since leaving there have
conducted almost a thousand seminars on financial planning and taxes. I
speak to real estate and banking professionals all over the country, and
have found that everyone wants to learn smart strategies that bring
reliable financial returns - without getting them into tax trouble. In
my opinion, hiring your family is one of them.
Don't hesitate to put the troops to work. When you hire your
children you're teaching them skills they'll be able to use for the long
haul. They're learning the value of a dollar - and how hard you have to
work to earn them. And bottom line, it makes good financial sense as
well.
© 2005, Chris Bird
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vineri, 16 noiembrie 2012
Recruiters: The Challenges of Executive Head Hunters
Once upon a time, head hunters were no more than
common cannibals. Some people still view them that way, but executive
recruiters are a vital link in a chain that keeps major enterprises
functioning well.
The top positions at any organization dictate the fortunes of the company, the shareholders and the employees ... and often the communities in which they are located. A good executive head hunter can ensure that new company executives have the skills required for the position and the challenges ahead. He can also ensure that the right executive is chosen, one whose style will flourish in the specific environment of that company.
However, modern executive recruiters face challenges to be effective. I caught up with Esther Barzel, co-owner of the Online Recruiter Directory ( http://www.onlinerecruitersdirectory.com ).
Q: What are the main challenges of executive head hunters in today's business climate?
A: To start with, the geographic net has become much wider. A head hunter in , say, New York City or Toronto, can no longer rely on finding the right candidate right in town. In fact, the ideal candidate might be just minutes away by Internet, but he might be located in another country or even on another continent. We are looking at a new breed of executive recruiter.
Q: The Internet should make his job easier, right?
A: Yes...and no. He has to post requirements in more places and sift through more potential candidates to find the jewel he seeks. So his workload has actually increased.
Q: Plus, I presume, he still faces the challenges of yesteryear?
A: That's right. He still has to make contact with potential candidates, conduct preliminary interviews, set up meetings with the company, attend to minute details, brief the interviewer, etc.
Q: What about follow-up?
A: Yes, there is, of course, follow-up required after every interview, both with the client and with the prospect. It's a busy job.
Q: So how does the Internet make life easier for an executive recruiter?
A: Now you have online communities and bulletin boards, such as Monster.com, where you can place ads for positions. This makes it somewhat easier to cast one's net. Directories like ours help head hunters attract clients, so they can spend more recruiting and less time on business development.
Q: Don't online bulletin boards and directories just mean the head hunter has to spend more time in more places?
A: Yes and no. Online resources are more easily searched than, say, paper. Our recruiter directory gives employers the chance to search by geography or by vocation, or by the type of position. This means they can find a recruiter that specializes in pharmaceutical sales, or who specializes in accounting, or whatever field. The head hunter spends less time answering questions from people who will never be their clients.
Q: And I assume it works both ways?
A: Yes, the recruiter gets resumes from only those people who are likely candidates for the types of positions he works on. The pharmaceutical recruiter, for example will not get a resume from someone whose background is in aeronautical engineering.
Q: Wow, that's a mouthful. I don't know if I could even repeat that.
A: Many executive recruiters could not repeat it, either. So the Internet is making it easier for them to receive resumes targeted to their field of expertise, saving them time...not to mention overexertion of their tongues.
On that humorous note, we thank Esther for taking the time to explain how the Internet is making life both more complex and easier for executive recruiters and head hunters.
The top positions at any organization dictate the fortunes of the company, the shareholders and the employees ... and often the communities in which they are located. A good executive head hunter can ensure that new company executives have the skills required for the position and the challenges ahead. He can also ensure that the right executive is chosen, one whose style will flourish in the specific environment of that company.
However, modern executive recruiters face challenges to be effective. I caught up with Esther Barzel, co-owner of the Online Recruiter Directory ( http://www.onlinerecruitersdirectory.com ).
Q: What are the main challenges of executive head hunters in today's business climate?
A: To start with, the geographic net has become much wider. A head hunter in , say, New York City or Toronto, can no longer rely on finding the right candidate right in town. In fact, the ideal candidate might be just minutes away by Internet, but he might be located in another country or even on another continent. We are looking at a new breed of executive recruiter.
Q: The Internet should make his job easier, right?
A: Yes...and no. He has to post requirements in more places and sift through more potential candidates to find the jewel he seeks. So his workload has actually increased.
Q: Plus, I presume, he still faces the challenges of yesteryear?
A: That's right. He still has to make contact with potential candidates, conduct preliminary interviews, set up meetings with the company, attend to minute details, brief the interviewer, etc.
Q: What about follow-up?
A: Yes, there is, of course, follow-up required after every interview, both with the client and with the prospect. It's a busy job.
Q: So how does the Internet make life easier for an executive recruiter?
A: Now you have online communities and bulletin boards, such as Monster.com, where you can place ads for positions. This makes it somewhat easier to cast one's net. Directories like ours help head hunters attract clients, so they can spend more recruiting and less time on business development.
Q: Don't online bulletin boards and directories just mean the head hunter has to spend more time in more places?
A: Yes and no. Online resources are more easily searched than, say, paper. Our recruiter directory gives employers the chance to search by geography or by vocation, or by the type of position. This means they can find a recruiter that specializes in pharmaceutical sales, or who specializes in accounting, or whatever field. The head hunter spends less time answering questions from people who will never be their clients.
Q: And I assume it works both ways?
A: Yes, the recruiter gets resumes from only those people who are likely candidates for the types of positions he works on. The pharmaceutical recruiter, for example will not get a resume from someone whose background is in aeronautical engineering.
Q: Wow, that's a mouthful. I don't know if I could even repeat that.
A: Many executive recruiters could not repeat it, either. So the Internet is making it easier for them to receive resumes targeted to their field of expertise, saving them time...not to mention overexertion of their tongues.
On that humorous note, we thank Esther for taking the time to explain how the Internet is making life both more complex and easier for executive recruiters and head hunters.
The Fun Of Starting A New Business
So you had that fantastic business idea, the one
that's going to be wildly successful and make you a fortune - even
better, you actually did something about it and started your own
business. Good for you! Not everyone gets that far. Most people sit and
day dream about what they might do if only ....
"The world is full of dreamers, there aren't enough who will move ahead and begin to take concrete steps to actualize their vision" - W. Clement Stone
But you got over the biggest hurdle, that first step and you actually created something.
Well done - you did more than most. Now you have the day to day details of running your business so how do you keep going?
There are several things to look at here:
1. What are you good at and what do you enjoy doing? Make two lists - one of the jobs you like and one of the jobs you don't do very well. Take the second list and have a look at what you might outsource or automate. Do you love doing those accounts or would your time be better spent in forward planning while your accountant does the sums? Must you personally reply to every enquiry or could you create a FAQ which you can post on your website and refer people to by autoresponder? In the early stages of your business you might find you don't have the money to pay someone to do the jobs you hate. Could you swap skills to get the help you need?
2. Why are you doing this? You need to be motivated to start a business and keep it going. The best way to do this is to know what the effort is for. What really moves you to get up in the morning and do what you need to do even when you don't really feel like it? Write your reasons down. Find pictures of that house, or that holiday and put them where you can see them.
3. How do you deal with those bumps in the road? Not everything you do will be perfect - sometimes things you've tried will be a disaster - it's the way you react to problems that matters. If you curl up in a ball and give up at the first sign of failure you'd better not be in business. It's all about attitude.
4. Have a plan and stick to it as far as possible but be prepared to be flexible and open minded. Sometimes the most unexpected opportunities come and you need to be ready to seize them. - as Joe Vitale says 'Money likes speed'.
5. Get a mentor - learn from someone who has done it. Someone to bounce ideas off and who can encourage you when things get tough is invaluable.
And most importantly, never let anyone put you down and never be afraid of failure:
"It is not the critic who counts, not the man who points out how the strong man stumbled, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena; whose face is marred by dust and sweat and blood; who strives valiantly; who errs and comes short again and again; who knows the great enthusiasms, the great devotions, and spends himself in a worthy cause; who at the best, knows in the end the triumph of high achievement; and who, at worst, if he fails at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory nor defeat" - Theodore Roosevelt.
Don't ever forget that!
"The world is full of dreamers, there aren't enough who will move ahead and begin to take concrete steps to actualize their vision" - W. Clement Stone
But you got over the biggest hurdle, that first step and you actually created something.
Well done - you did more than most. Now you have the day to day details of running your business so how do you keep going?
There are several things to look at here:
1. What are you good at and what do you enjoy doing? Make two lists - one of the jobs you like and one of the jobs you don't do very well. Take the second list and have a look at what you might outsource or automate. Do you love doing those accounts or would your time be better spent in forward planning while your accountant does the sums? Must you personally reply to every enquiry or could you create a FAQ which you can post on your website and refer people to by autoresponder? In the early stages of your business you might find you don't have the money to pay someone to do the jobs you hate. Could you swap skills to get the help you need?
2. Why are you doing this? You need to be motivated to start a business and keep it going. The best way to do this is to know what the effort is for. What really moves you to get up in the morning and do what you need to do even when you don't really feel like it? Write your reasons down. Find pictures of that house, or that holiday and put them where you can see them.
3. How do you deal with those bumps in the road? Not everything you do will be perfect - sometimes things you've tried will be a disaster - it's the way you react to problems that matters. If you curl up in a ball and give up at the first sign of failure you'd better not be in business. It's all about attitude.
4. Have a plan and stick to it as far as possible but be prepared to be flexible and open minded. Sometimes the most unexpected opportunities come and you need to be ready to seize them. - as Joe Vitale says 'Money likes speed'.
5. Get a mentor - learn from someone who has done it. Someone to bounce ideas off and who can encourage you when things get tough is invaluable.
And most importantly, never let anyone put you down and never be afraid of failure:
"It is not the critic who counts, not the man who points out how the strong man stumbled, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena; whose face is marred by dust and sweat and blood; who strives valiantly; who errs and comes short again and again; who knows the great enthusiasms, the great devotions, and spends himself in a worthy cause; who at the best, knows in the end the triumph of high achievement; and who, at worst, if he fails at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory nor defeat" - Theodore Roosevelt.
Don't ever forget that!
An introduction to point of sale software
Point of sale software gives business owners a
convenient way of checking out customers and of recording sales. It can
keep a record of the store inventory, updating it when an order is
processed. It can also print out receipts, carry out credit card
processing, track customers, etc. Point of sale software eases the flow
at checkout terminals, while recording all the information that can help
you make better business decisions.
Point of sale software allows users to input via keyboard or mouse, and some even have a touch screen interface. You can install the software on your checkout register.
When checking out a customer you can either input the sales item yourself or use a bar code scanner. The point of sale software will look up the item in the inventory and bring up the price. It can also calculate tax on the item and change for the customer.
POS software can print out receipts and reports. Point of sale software makes your business accounting a lot easier by creating reports on inventory, sales, customers, etc. Since it is already recording each sale, it can easily tell you the sales and revenue of the day.
Point of sale software can also help with credit card processing. Credit cards are the preferred method of payment. People do not want to carry around cash for all their purchases. Credit card is a convenient method of payment and if you do not have credit card processing, your business can lose some of its competitiveness.
Point of sale software receives input from the POS hardware, which is the scanning station for the credit card. The software will process the credit card payment for you. It can check that the card has not expired and is valid. You will need a merchant account for the point of sale software to do its job.
POS software is generally easy to install and easy to use. You will need to know how to update inventory and record a price change for an item. Point of sale software usually provides an easy to use interface to do this. It can make the job of the cashier a lot easier by automating the routine tasks of the day.
There is a wide variety of point of sale software available. You can choose one that fits your budget and meets the needs of your particular business. The software will have compatibility requirements with the point of sale hardware. It will also have operating system requirements such as it might need a Windows or Linux system.
Point of sale software can more than pay for itself over time by making checkout faster and doing your accounting for you. Point of sale software may be the right solution for your business and can provide you with tons of benefits.
Point of sale software allows users to input via keyboard or mouse, and some even have a touch screen interface. You can install the software on your checkout register.
When checking out a customer you can either input the sales item yourself or use a bar code scanner. The point of sale software will look up the item in the inventory and bring up the price. It can also calculate tax on the item and change for the customer.
POS software can print out receipts and reports. Point of sale software makes your business accounting a lot easier by creating reports on inventory, sales, customers, etc. Since it is already recording each sale, it can easily tell you the sales and revenue of the day.
Point of sale software can also help with credit card processing. Credit cards are the preferred method of payment. People do not want to carry around cash for all their purchases. Credit card is a convenient method of payment and if you do not have credit card processing, your business can lose some of its competitiveness.
Point of sale software receives input from the POS hardware, which is the scanning station for the credit card. The software will process the credit card payment for you. It can check that the card has not expired and is valid. You will need a merchant account for the point of sale software to do its job.
POS software is generally easy to install and easy to use. You will need to know how to update inventory and record a price change for an item. Point of sale software usually provides an easy to use interface to do this. It can make the job of the cashier a lot easier by automating the routine tasks of the day.
There is a wide variety of point of sale software available. You can choose one that fits your budget and meets the needs of your particular business. The software will have compatibility requirements with the point of sale hardware. It will also have operating system requirements such as it might need a Windows or Linux system.
Point of sale software can more than pay for itself over time by making checkout faster and doing your accounting for you. Point of sale software may be the right solution for your business and can provide you with tons of benefits.
9 things you must do to maximize your chances of obtaining a small business loan
To get approval for your small business loan
application, you must be able to meet the lending criteria set down.
Some organisations are more risk averse than others, and will therefore
have more stringent criteria.
To vastly increase your chances of a successful funding application, you will need to present the following information:
1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.
2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).
3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It”
4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they?
5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.
6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.
7. Latest Set of Management accounts. Again produced from your accounting software.
8. Accounts receivables (debtors) and payables (creditors) ageing reports.
9. Principals financial statements. – Particularly required if some form of security is necessary.
If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan.
You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!)
Good luck!
To vastly increase your chances of a successful funding application, you will need to present the following information:
1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.
2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).
3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It”
4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they?
5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.
6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.
7. Latest Set of Management accounts. Again produced from your accounting software.
8. Accounts receivables (debtors) and payables (creditors) ageing reports.
9. Principals financial statements. – Particularly required if some form of security is necessary.
If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan.
You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!)
Good luck!
Press Release UCLA Alumni Association Retains the Accounting Firm of Singer Lewak Greenbaum and Goldstein, LLP
The UCLA Alumni Association today announced that they have selected the accounting firm of Singer Lewak Greenbaum & Goldstein, LLP (SLGG) as its new independent auditor.
Los Angeles, CA July 17, 2004 -- The UCLA Alumni Association today announced that they have selected the accounting firm of Singer Lewak Greenbaum & Goldstein, LLP (SLGG) as its new independent auditor. SLGG, a leading regional CPA & Management Consulting firm, provides accounting, tax and management consultant services for a broad range of clients including individuals, family-owned businesses, private and public companies as well as nonprofit organizations.
"The Association is entering an exciting new phase in its history. We wanted a firm with roots in the Los Angeles community, a depth of resources and the adaptability necessary to support a dynamic organization's business requirements while ensuring the finest audit support available. SLGG has a solid reputation for professionalism and service with proven expertise," said Keith Brant '83, M.A. '88, Ph.D. ’95, assistant vice chancellor, alumni relations and executive director, UCLA Alumni Association
"We are excited to work with the UCLA Alumni Association, strengthening further our ties to UCLA community. We look forward to growing together as we help this innovative and award-winning Association achieve its vision to serve more than 300,000 UCLA alumni," said Lewis Sharpstone, partner in charge of nonprofit practice group at SLGG.
About SLGG
Singer Lewak Greenbaum & Goldstein LLP is the largest certified public accounting firm headquartered in Los Angeles, California. Established in 1959, the firm has grown to more than 150 professionals and support staff. Today we serve a broad range of clients ranging from individuals to family-owned businesses to public companies of all sizes. Singer Lewak Greenbaum & Goldstein, LLP has offices in Los Angeles, Santa Ana, and Ontario, California. For information, visit www.slgg.com.
About UCLA Alumni Association
One of the top organizations of its kind in the world, the UCLA Alumni Association boasts more than 88,000 members and serves as liaison between UCLA and its more than 300,000 living alumni around the world. Founded in 1936, the Association is proud of its long history of developing support for UCLA and its mission in the Los Angeles community and throughout California while offering UCLA alumni a wide array of services, ranging from professional networking to educational travel. For information about the Association, visit www.UCLAlumni.net.
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