Better stock up on 1099s

A business peer read our articles on Health Care Reform in the May Biz2Biz and was prompted to share news she'd uncovered. What she shared blew me away. Here's the 411:

Hidden in the HCR Bill is a teeny weeny section that says that beginning in 2012 all companies will be required to issue 1099 tax forms to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

So let's put this is perspective.  You buy an iMac from the Apple store for $1,000. Now you have to send Apple a 1099. Buy $650 worth of paper towels from a B2B distributor? You'll send them a 1099, too. Shop at Office Depot for your office supplies? You'll have to send them a 1099.  Spend more than $600 on your merchant services? Yep, put them on your list, too. All those B2B luncheons you attend, you'll be sending both the Chamber and the hotel 1099s.

The story was reported in CNNMoney.com and went on to say that one of the reasons this tax code revision landed in the HCR was government's way of recapturing unreported income -- and maybe that will offset the cost of the health bill.

We reported in the Money Issue of Biz2Biz in February about the IRS looking at "tax gaps." The Feds believe there is $345 billion in unreported income going untaxed.  They also surmise that if small business is going to get health care tax cuts, we're going to have to make it up for it somewhere else.

There are so many ways to peel this peach I don't know where to begin.  Aside from the sheer nightmare of adding reams of paperwork we, as small business owners, don't need this tops my list of the most ridiculous things people think of.  There's a TV show on True TV that this would fit right into-- "America's most stupid rules."

Is government securing its own destiny by giving itself more work? Will it cost more to administrate this code than they will gain in tax revenue? Is government in the throes of a black hole, about to collapse upon itself and suck everything with it?

OMG! What do we do about this?

Read the full article at CNN Money.

Health Care Reform and Small Business

Raise your hand if you have health insurance. Raise your other hand if your employer provides part of it. 

If your hands are still at your sides you are a member of some 45 million Americans without health insurance. Of those without insurance, an estimated 63 percent are either self-employed or work for a small business, according to the Employee Benefit Research Institute (EBRI).

If your hands are still in the air you are probably one of 177 million people who have employer-provided insurance.  However, as President Obama said, “all it takes is one stroke of bad luck – an accident or an illness, a divorce, a lost job – to become one of the nearly 46 million uninsured.”

It’s not all about budgeting. An estimated 17-plus million uninsured are making more than $75,000 a year, and are part of the fastest growing segment of the uninsured population.

In this issue we look at the health in the workplace. Many say the theory behind the healthcare reform is a move to national health care, which we wouldn’t be pioneering. England is trying to get out from under theirs.  Canada has states getting out from under theirs. Meanwhile Hong Kong, Taiwan, Japan, France, Germany, Sweden, Denmark, and Australia are thrilled with their health care systems comparable to the level of care in the U.S. at half the cost.

Will the health care reform bill help or hurt small businesses? Some say it will help. Others say not. Some say we need a national health care system. Some say we don’t need another inefficient government-run program.

Time will tell. In the meantime, stay tight with your insurance provider and eat at least one apple a day.

What kind of a shopper are you anyway?

Money. It’s on the minds of many of us. In business everything we do impacts our bottom line in some way. And so does our personal relationship with money, finances and budgets. What kind of relationship do you have with money? Brent Kessel, author of It’s Not About the Money and co-founder of Abacus, a sustainable investing and financial planning firm, says there are eight broad categories we fall into:

1. The Guardian is always alert and careful.
2. The Pleasure Seeker prioritizes pleasure and enjoyment in the here and now.
3. The Idealist places the greatest value on creativity, compassion, social justice or spiritual growth.
4. The Saver seeks security and abundance by accumulating more financial assets.
5. The Star spends, invests or gives away money to be recognized, feel hip or classy and increase self-esteem.
6. The Innocent avoids paying significant attention to money, believing (or hoping) that life will work out for the best.
7. The Caretaker gives and lends money to express compassion and generosity.
8. The Empire Builder thrives on power and innovation to create something of enduring value.
What type are you? We found two quizzes to help you rate your dollar sense and sensibilities. http://bit.ly/MoneyQuiz1 and http://bit.ly/MoneyQuiz2

Adding the Green Hat in Small Business

As a small business owner I wear a lot of hats. You, too, I suspect. So now along with our role as CEO, CFO, and COO – I say we need to add one more. That’s CSO – Chief Sustainability Officer.

CSO is a relatively new role for the business world and brand spanking new for small business. So new, in fact, that industry is struggling to define a job description and who would be best suited to fill it.

It’s been my opinion that the way to a greener, cleaner planet is through the consumer and her wallet. And for once I don’t think I’m standing alone. Evidence in every sector shows advances in energy-efficiency and sustainable practices. Big business is looking at sustainability initiatives to squeeze in more profit, and small business needs them to survive.

The World Commission on Environment and Development defined sustainability back in 1987 as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”  As you consider how to add CSO to your rack-stand of bowlers and ball caps, here are six steps to help get you started.

• Take a leadership role in sustainability and inspire your team to dial in on the job. Ask yourself to lead with higher standards.

• Find ways to tie in sustainability issues that already exist in your company. Look for ways to accelerate your own green innovations.

• Find the most supportive employees, customers and business allies, and engage them first. Encourage smart new policies that reward sustainability performance.

• Gather your team to brainstorm and create your company’s sustainability and business social responsibility policies. These can be tremendous assets in attracting new employees and customers.

• Create open-door policies that engage conversation and encourage transparency.

• Take advantage of partnerships. Look outside your company for experts, organizations and academics who can give you a fresh perspective and move your initiatives further, faster.

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