1. Defer Income:  Assuming your business is a cash basis taxpayer, any income that you can postpone until January 1st will defer the tax bill nearly thirteen months, whereas income received prior to December 31^st will be paid in March or April of the following year.  Postpone sending your invoices if your cash flow permits. 

2. Increase Expenses:  Buy any items your business may need in the near future to maximize the deductions for this year.  Pay for goods and services you foresee needing early in the new year, if cash flow permits. For instance, consider the following expense items:

   Ø      Office Supplies: Stock up on fax paper, printer cartridges, stationary, and other office items.

   Ø      Pay Bills Early: Pay monthly bills such as phone, cellular services, subscriptions, rent, insurance, and utilities before the new year.

          Ø      Equipment Purchases: If you will be buying new office equipment, consider purchasing now before year end.  You will have to decide whether an immediate write off is best or spread out the depreciation over years. Consult with an accountant to examine your circumstance and company structure to maximize your deductions.

          Ø      Other Items: This category includes: pre-payment of subscriptions, travel bookings, equipment repairs and maintenance.  

3.  Contribute to a Retirement Plan:  Make payments to your retirement plan or set one up before the year-end to reduce your income for this year.  There are many types of plans to choose from including a 401(k), Roth IRA, SIMPLE or SEP.  Contributions not only reduce your current income taxes, but earnings are also deferred. 

4.  Plan now for next year.  Establish your budget for next year while you are reviewing your financials for this year.  This strategy may not help you with this year’s taxes, but it will certainly help you set your course for next year. 

These year-end tax tips will apply differently to each business owner’s situation and accounting method. Take the time to review the best strategy with a professional advisor and make the most of the year-end for your business.

Nevertheless, the Equal Employment Opportunity Commission (EEOC) issued guidelines in 1980 declaring sexual harassment to be a form of sex discrimination in violation of Title VII. These guidelines (i) established criteria for determining when unwelcome conduct of a sexual nature constitutes sexual harassment, (ii) defined the circumstances under which an employer may be held liable, and (iii) suggested affirmative steps an employer should take to prevent sexual harassment. 

The United States Supreme Court gave credence to the EEOC’s position in 1986 and formally construed Title VII prohibitions against sex discrimination to include sexual harassment in the case of Meritor Savings Bank v. Vinson. This landmark decision set off a flood of litigation that continues to this day by enabling victims of sexual harassment to sue their employers for monetary damages. 

Does your business or organization have a policy and prevention program regarding sexual harassment? The EEOC reports that over the last seven years, it has received approximately 14,000 complaints of sexual harassment annually. These cases have resulted in monetary benefits of close to fifty million dollars ($50,000,000) annually. This amount does not include damages obtained through litigation. 

Sexual harassment is serious business and if not understood by those who manage employees, it can result in serious consequences. 

The bottom line is that if you don’t have a sexual harassment prevention and training program and if you don’t have a clear policy that is communicated to and understood by all employees, now is the time to take action by contacting our law firm for assistance in preparing and implementing an effective policy.

             Some people cannot use the new online application.  If you are a third party filing the application on behalf of the business owner, the business owner must first complete a Form SS-4 and the third party must keep the application on file.  Single-member LLC’s with employees where the owner is an individual who does not already have a sole proprietor EIN cannot use the new application.  Likewise, if the business was incorporated outside the United States, the new application is not available.             If you fall into any of the excluded categories, or are a traditionalist, you may still request an EIN by mailing a completed Form SS-4 to the IRS.  To access the online application, click here or contact our law firm for assistance.

The Age Discrimination in Employment Act of 1967 protects workers age 40 and over from employment-related discrimination.  As your workforce ages and new generations start working (and supervising), make sure you understand at least the basics of the ADEA.  A great place to start is the Age Discrimination part of the EEOC website at http://www.eeoc.gov/types/age.html.

The truth is that both the state and federal governments offer a wealth of free information, education, and tools for businesses of all sizes.

Last week we wrote about the Department of Labor’s Working Partners program to help businesses fight drug and alcohol abuse and the associated costs in their workplace.  The Working Partners website offers help to businesses of all sizes and in various stages of dealing with workplace substance abuse.

If you are in the early stages of developing a strategy to fight workplace substance abuse issues (or haven’t started yet), the Working Partners site has an area just for you.  The Drug-Free Workplace Advisor is an interactive tool that helps businesses build tailored drug-free workplace policies and programs and provides information about coverage and requirements of the Drug-Free Workplace Act of 1988.  The Program Builder offers tools to help business owners focus on Policy Development, Supervisor Training, Employee Education, Employee Assistance Programs, and Drug Testing Programs.   

While this observance isn’t limited to just worplace drug and alcohol issues, it’s no secret that alcohol and drug addiction costs employers millions of dollars in healthcare costs, production slow down, and other effects.  In recognition of this, the US Department of Labor has created the Working Partners for an Alcohol and Drug-Free Workplace Program.   

Visit the Working Partners website for free training and educuational materials to help you, your employees, and your business rise above the costs of addiction.

When you talk with employees about their performance reviews, beware of using common phrases that can unintentionally communicate the wrong message, or come across as too negative or personal.

Certain phrases can kill employee morale, weaken productivity or open up the organization to a discrimination lawsuit.

Your goal is to deliver reviews that help shape employees’ performance without becoming sidetracked by anger, emotion or fear of conflict. To do so, avoid the following phrases:

“You’re wrong.” If an employee tries to explain why her job rating should have been higher, don’t slap back with a Trump-like, “You’re wrong.” That will only trigger anger and more confrontation. Instead, turn back to your documented facts of the employee’s performance and say, “I know you disagree, but I believe this evaluation accurately reflects your performance.”

“What was your problem?” Don’t use the question as a way to ask why an employee had difficulty completing a project or task. Employees will bristle at such a statement. Instead say, “What were the conditions from your perspective that made it difficult for you to complete the task?”

“You really did a great job but … ” Whatever comes after the “but” negates the preceding compliment. Don’t directly connect praise with constructive criticism. Instead say, “On the other hand, you can do even better by making these improvements.” Then, cite them specifically.

“I understand.” This phrase can excuse unacceptable performance or behavior by conveying empathy. Avoid it when possible.

“Your position here is solid as long as you keep up the good work.” You may intend such statements to encourage good performance, but they’re legally dangerous because they imply an employment contract that a court could find binding. That limits the organization’s ability to ever fire the person.

Is your business prepared to face a crisis?  Consider these questions:

Be Informed:

• Do you know what kind of emergencies might affect your company?
• Do you know what you will do in an emergency situation?

Develop a Business Continuity Plan:

• Do you know which staff, procedures and equipment are absolutely necessary to keep operating?
• Do you have back-up plans for operations?
• Do you know what you will do if your building or plant is not accessible?
• Do you know what you will do if your suppliers are impacted by a disaster?
• Are you ready for utility disruptions?

Prepare your Emergency Plan:

• Do you have an evacuation and shelter-in-place plan?
• Do you have a plan to commnicate with employees before, during and after an incident?
• Do you have copies of building and site maps with utilities and emergency routes marked?
• Are your employees trained for medical emergencies?

Practice the Emergency Plan:

• Have you practiced your plan recently?
• Do you practice and coordinate with other businesses in your building or industrial complex?
• Have you reviewed you plans in the past 12 months?

Review Insurance Coverage:

• Have you reviewed your insurance coverage recently to see if you’re covered in a disaster?

Secure your Facility and Equipment:

• Have you secured all the ways people, products and supplies get into your building?
• Have you conducted a room-by-room walk through to determined what can be strapped down?

Improve Cyber Security:

• Do you regularly install patches to your software?
• Have you installed a firewall on your computer?
• Do you regularly update your antivirus software?

Promote Family and Individual Preparedness:

• Do you encourage employees to have a personal emergency supply kit and a family communication plan?

source: ready.gov

For more information, the Department of Homeland Security has a website devoted to preparedness with publications, posters, and information on crisis preparedness and management.