How to Approach Succession Planning
Does your organization have a succession plan in place? And, if it does, is it well documented? Some not-for-profits delay detailed succession planning, thinking of it as a project they’ll get to “someday.” But that’s a mistake. Like making future plans in your private life, creating a succession plan for your organization is a necessity. And…
Can an Attorney Be an Employee of a Client?
If a small business hires an attorney to do work, can the attorney be treated as an “employee” rather than an “independent contractor?” Most people would answer “independent contractor,” without any hesitation, but the outcome isn’t always so clear-cut. In fact, the employment status of one attorney was called into question in one case decided by…
Consider an Alternate Metric to Value Your Small Business
Would you use a complicated discounted cash flow analysis to estimate the value of a mom-and-pop restaurant? How about using a price-to-earnings multiple derived from publicly traded restaurant chains? Neither method seems appropriate for a small family-operated eatery. As this example illustrates, traditional valuation models don’t necessarily work for small businesses and professional practices. Instead, business…
Seven Steps for Responding to EEOC Complaints
It’s an employer’s nightmare: You are notified by the Equal Employment Opportunity Commission (EEOC) that a complaint has been lodged against the company. Many employers are facing this situation, according to EEOC statistics. The number of individuals filing discrimination, harassment and retaliation claims with the federal government has remained high in recent years (see right-hand box…
Tax Savings from Cost Segregation Studies Add Up for Businesses
Has your company invested in buildings this year to rent out or use for business purposes? Real estate investors have used cost segregation studies for many years to lower their tax bills. In a nutshell, these studies divide property into smaller parts, allowing for faster depreciation of certain parts of a building. Thanks to liberalized depreciation…
Does Your Buy-Sell Agreement Need Updating?
If you own a business and follow professional advice, you’ve likely established a buy-sell agreement in case you or a co-owner voluntarily or involuntarily leaves the company. Assuming this is true, remember that it’s not enough to draft an agreement and put it in a safe place. You need to review and perhaps revise the document…
Save Taxes While Controlling Employee Health Costs
If rising health care costs have sent your company searching for ways to reduce expenses, you should know there are alternatives to standard medical insurance plans. Your choices are not limited to either paying the higher costs yourself or transferring the burden to your employees. Tax-advantaged strategies are available which can mitigate the effect of rising…
‘Partnership’ Culture is Best for Success
Certain workplace culture characteristics consistently bring about higher financial performance, according to a study done by one researcher. Organizational psychologist Dr. Richard Petronio surveyed 200,000 employees at 50 companies in a cross-section of industries — high-tech, health care, insurance, transportation, manufacturing, finance, services and retail. The study identified the workplace culture characteristics that correlate with financial…
IRS Issues Guidance Deducting Meals Bought During Entertainment
The IRS recently provided transitional guidance about the deductibility of expenses for business meals that are purchased in an entertainment context. (IRS Notice 2018-76) The Basics Businesses can deduct ordinary and necessary expenses paid or incurred during the tax year in carrying on a trade or business. Before it was amended by the Tax Cuts and…
Use an Old Rule to Add Value at Work
Here’s a trivia question: Name the management consultant, credited with launching the Pareto Principle, who lived to be more than 100 years of age? Answer: Joseph M. Juran. Second question: What’s the Pareto Principle? Third question: What makes the Pareto Principle important to employers, managers, and supervisors? Decades ago, Juran traveled to Japan where he began helping Japanese…