Important Update: The IRS wants to forgive all your 2013 taxes and penalties for mis-classified 1099 contractors who should be employees.
We first wrote about this in 2011. Now the IRS has extended the program and the first part of the new year is the best time to get this done. Start 2014 with no more contract employees.
Paying some employees as 1099 contract labor (independent contractors) seems like a good deal: You save time and paperwork… and a bunch of money on taxes. But it’s not legal, and the penalties are harsh. It’s time to come clean and use this new program to “get out of jail free”.
Whether your business has four employees or forty, managing payroll can be a tedious process. If you have the expertise in managing employee benefits and have extra time in your schedule, it may make sense to handle the responsibilities yourself. However, if you are unfamiliar with how to do payroll, consider outsourcing. Using a payroll processing service can save you valuable time and money and simplify your business banking. Before you decide how you will manage your employee’s pay, learn more about the benefits of small business payroll services.
Let’s face it, an Initial Public Offering (IPO) is not in your future. I’m not trying to be mean, just realistic: an IPO will never be a fit for 99% of companies. Selling stock to the general public is just too complicated, too expensive and relies too much on rapid growth and big profits.
But that doesn’t mean that you can’t get the benefits of being on the public stock market — the flexibility, prestige and access to capital might be closer than you think.
[By guest blogger Mary Bruce]
I thought it was a pretty simple question. “What do you want this business to look like in five years?” However, Joan didn’t like it at all. “That’s not a question I can answer. Our market is limited. In order to grow, we have to be opportunistic – see what pops up and then pounce.” Joan is at least partially right. Many successful business owners have gotten where they are by being opportunistic. Unfortunately, many others have failed for the same reason.
A Harvard Business Review article (and podcast) called “The High Intensity Entrepreneur” makes this shocking claim:
“To be successful, entrepreneurs should wait until they are in their 30’s before launching a business.”
I almost dropped my iPod when I heard this.