| Blitz
Ezine #246 Feb 1, 2005
How to create Goals that work for your web business
The Blitz-Promotions News Letter
Issue no. 246, Feb 1, 2005
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Blitz Comments
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We
start a series this week on Goal Making - we hope you enjoy
it.
Make
sure to check out daily promotion hints and tips.
http://smallbizpromo.blogspot.com
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In this Issue
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-
Goal Making 1,2,3
- Tax Risks
- 7 Business Tips
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Food for thought
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The
reason most people never reach their goals is that they don't
define them, or ever seriously consider them as believable
or achievable. Winners can tell you where they are going,
what they plan to do along the way, and who will be sharing
the adventure with them. Denis Watley
Our
goals can only be reached through a vehicle of a plan, in
which we must fervently believe, and upon which we must vigorously
act. There is no other route to success. Stephen A. Brennan
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Goal Making 1,2,3
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Did
you make any goals for the New Year - or do you have
any goals. If you don't then I urge you to make some
(and I'm also preaching to myself here). If you don't
have any goals then you are basically just getting in
a car and driving around with no destination... do you
do that often, hopefully not too often.
Over
the next few issues we're going to talk some about making
goals. When I think of goals I don't think of just things
on a piece of paper but actual small action steps that
make the path to fulfilling the goal. I also believe
in making goals as large as you want them to be. My
Dad has told me many times that if you reach for the
stars, you may not get one, but you won't come up with
a handful of dirt either. This months lesson is simple.
Step
1 - Make yourself a mental note / write down on your
calendar to check our blog on Feb. 8th because that
is when we'll be giving you the next steps. You can
check out our blog at the following link.
http://smallbizpromo.blogspot.com
Step
2 - This week spend 10 or 15 minutes thinking about
where you would love to be in a year, in 5 years, in
10 years. Don't think only about your business, but
all aspects of your life - spiritually, emotionally,
physically, etc. When you dream, dream big. Make some
notes of what you're thinking about, because the next
step will be writing them down.
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Tax Risks of Small Business Employee Benefit
Plans
by Tony Novak, MBA, MT, OnlineAdviser at Freedom Benefits
Association
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Tax
Risks of Small Business Employee Benefit Plans
by Tony Novak, MBA, MT, OnlineAdviser at Freedom Benefits
Association
A
small business owner faces enough risks without the need to
be worried
that the IRS may deny the tax deductions taken for improper
employee benefit
plans. Fortunately, the audit and disallowance of small business
employee
benefit plans is small. Freedom Benefits Association lists
some problem
issues and breaks them into rough categories of risk ranging
from high” to
medium” and low”. A separate category is included
at the end to include
those issues for which we cannot make accurate comments. This
article
considers only the federal tax risks, not legal risks or other
business
risks that may arise. Also, this issue addresses only tax
risks that are
applicable to the employer, not those that may be faced by
the employee.
High
Risk Issues
Deposits
not verified by custodian. If you take a deduction for a
retirement plan, for example, and do not actually make the
deposit with an
approved custodian, there is a high probability that the error
will be
caught. The IRS uses a computerized matching program that
appears to be
very efficient.
Unauthorized
Custodian. If you opened your health savings account with
Merrill Lynch for example and take a deduction on your tax
return it will
cause a problem because Merrill Lynch does not administer
health savings
accounts. (Apparently that has not stopped customers from
opening accounts
so titled). But this error would likely be caught in the IRS
s automated
unreported income matching program.
Improper
Investments. Directing funds from an employee benefit plan
to the
purchase an investment property is a problem regardless of
how great the
investment return. Investments in employer stock face restrictions.
FICA
issues any issue that results in underreporting of taxable
wages is a
high risk issue, not because of the risk of being caught,
but rather because
of the severity of penalties. Small businesses have literally
been shut
down because of sloppy accounting in this area.
Treating
owners as employees - Owners of sole proprietorships, partners,
members of an LLC and shareholders in an S corporation may
not be treated as
employees under most employee benefit plans. It makes no difference
that
the owner is actually working in the business the same as
a regular
employee. This is a common item examined in routine audits
of a business
reporting on a Schedule C or Form 1120S. The risk is that
if improper
reporting is discovered in one year, the other years before
and after are
likely to be also opened for examination of the same issue.
Medium Risk Issues
Discrimination
Issues When some employees do not receive a benefit enjoyed
by others, the result is often a complaint to the IRS. It
is important to
know that in the absence of a complaint, this would be a low
risk” issue.
But the frequency of audits suggests that disgruntled employees
are quick to
point the finger of suspicion. Discrimination is allowed in
all employee
benefit plans as long as it follows prescribed formulas. Discrimination
issues fall into two categories: Discrimination as to eligibility
and
discrimination as to benefits. In either case, perhaps the
best way to
avoid tax problems is to have an outside accountant review
the benefit plan
transactions at the time the tax return is prepared.
Lack
of Third Party Documentation Most pension plans require an
actuarys
report. Self-administered 401(k) plans require that the trustee
be bonded
by an insurance company. Health Reimbursement Arrangements
require that
cash benefits be verified by an independent auditor. Without
these third
party documents, deductions would likely be denied in a general
audit.
Health
plans that defer income Health reimbursement plans are not
intended
to defer income from the current year and postpone it to a
future year.
While this is difficult to detect from a general audit stance,
the IRS
happens to be on the lookout for this issue.
Low Risk Issues
Improper
wording in plan documents. While benefit plan documents should
be
updated every few years to account for changing legal requirements,
the IRS
admits that many (perhaps even the majority of) small business
do not fully
comply with current law. Yet seldom, if ever, do we hear of
a major tax
problem arising from a faulty small business benefit plan
document. Most
issues can be corrected through the IRS's voluntary correction
program for
employee benefit plans.
Group
health insurance administration Federal law requires that
small
business group health insurance plans abide by state laws
with regard to
eligibility, participation and contributions. Yet a high percentage
of
small business health insurance plans do not meet these stated
requirements.
The IRS either looks the other way or, more likely, does not
bother to look
at all.
Unknown Risk
Health
savings account deductions - Health Savings accounts were
brand new
in 2004, so we have little information on IRS examination
procedures. Tens
of thousands of taxpayers are expected to improperly claim
this deduction
over the next few months. With a lack of automated audit programs
and
little human resources attached to the issue, it is quite
possible that
these errors will go undetected.
Deferred
Income Plans New regulations published in late 2004 are very
clear. What's not clear is the IRS enforcement plan at the
small business
level. Businesses with these benefit plans should be reviewing
them now to
determine what changed should be made. Presumably, employers
who make
corrections within a reasonable time will be OK.
Freedom Benefits Association (www.FreedomBenefits.org)
provides low cost
employee benefit plans for small businesses without commissions
or ongoing
fees.
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For Entrepreneurs Only: 7 Powerful Business Tips
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Let's blow away all the chaff. All of it. Whooo. Gone.
What's left? Here are seven business nuggets for you to
ponder. Whether you're seeing them for the first time or
the hundredth time, they're just as powerful. Put a check
mark next to any you've mastered and move on to the next.
1.
Do you know what business you're in? You do? Well,
actually, you don't. Actually, you're in the business
of marketing your business. You've got a great
product AND you've got great service. But do you have
great marketing? Great marketing is the key to a
great business. They need to be combined. Great
business and great marketing. No one can stop that
combination!
2.
Speaking of marketing, YOU are the one who needs to
become the expert on marketing your business to your
market. Don't have anyone else do it. It's an
absolutely essential task. I've tried to delegate it,
and what a failure it's been! You are the only one
who has the ambition, drive and passion to do it
right. Marketing may be hard work, but you'll be
sorry if you ignore it!
3.
Balance in all things. Yes, clever and innovative
beats spending buckets of cash. However, be careful
that your leading edge advantage doesn't become your
bleeding edge pain. The money is where the competition
isn't. But make sure you don't end up in left field.
4.
How important is your Unique Selling Proposition
(USP)? It's absolutely Everything, that's all. It's
the cornerstone of your business. It's your anchor
when storms of trouble erupt. Are you very clear
exactly what your USP is? If not, that lack of
clarity can be the root of a thousand future problems.
5.
Have A Plan. Sure, it will change. But without one,
how do you know if you're doing what you're supposed
to be doing or just meandering around in the muck?
Your customers, suppliers, lenders and associates will
all respect you for having a clear plan.
6.
Team up with others. Of course, you're your own boss
when you work for yourself, which is why you're doing
it. But the world is a big place and you're going to
need help conquering it. Build strong alliances and
advantageous joint partnerships. Find a few mastermind
groups to join. Find a mentor; wait! On second
thought, make sure you have several!
7.
Your business is your ship. You're its captain. If
the ship is sailing YOU, all you've got is just a job.
Your business needs to complement your personality,
and your business environment must be extremely
comfortable for you to be in. If it's not, you'll
tend to be reactive rather than proactive. Your
creativity is what nourishes you. It's important that
your environment is supportive of this.
Count
the number of check marks you made. This list is not
easy. But, of course, you were aware that your business
wouldn't be 100% sugarcoated when you started it. The
promise of wealth and freedom still makes it worth every
minute.
About This Author -
Oliver P Rochester has had the most stringent boss of his
life for the last decade - himself. Employees come and go
but his boss stays the same. This is how he likes it.
You can read more articles about small business at
http://www.Dsmallbusiness.com
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Links you can use -
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Bravenet
has some excellent quick reference pages - including HTML,
CSS, Colors, and Unique Characters.
http://resources.bravenet.com/quickref/
A
resource page with directories you can submit to:
http://www.strongestlinks.com/directories.php
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Fun and Games
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Check
out how your house looks like from outer space - you can check
it out using this site.
http://www.terraserver.microsoft.com/
Kids
running out of things to do - if they like to color then they
(and you) will love this site.
http://www.coloring.com/
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Ads
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Useful links to our site
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Find
more useful promotion and design articles here -
http://www.blitzpromotions.com/articleindex.htm
Check
out our archives for issues you may have missed.
http://www.blitzpromotions.com/ezinearchives.htm
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Next Issues
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March
- Wrap up of our discussion on goals.
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Final Thoughts
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Tim
and Lisa Hamblin
Tisa Enterprises
PO Box 221
Hazard KY 41702
http://www.blitzpromotions.com
http://www.crochetnmore.com
http://www.webpageplanner.com
http://www.ineedlinks.com
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