Due to new 1099 requirements for business-to-business transactions, small business will be bogged down with more paperwork in 2012.  Section 9006 of the Patient Protection and Affordable Health Care Act changes the requirements for the preparation of 1099s.  Now corporations will no longer be exempt from receiving 1099s and all purchases of goods must also be included, not just those over $600.  This means for every cash or check transaction (credit card transactions are exempt) small businesses must obtain the vendor’s federal tax ID number (FEIN) and deliver a 1099 to every vendor from which you purchased goods and supplies by January 31, 2013. 

Healthcare Costs Reporting on W-2 for 2011

1099s aren’t the only thing the IRS changed.  W-2s have also changed for 2011.  Employers no longer have to include healthcare costs in Box 12 on the W-2 form (the deductions in wages that were non-taxable).  This may result in some confusion when the employer or employee looks at the W-2 this year.  The boxes may not add up to the number that appeared as net wages on the employee’s W2 for 2011.    

Pay attention to the instructions on IRS forms, even if you think you know what they say.  They are always changing!

Why the surge of financial support for small businesses?  Well, consider this: small businesses are the hardest hit by the economy, yet they employ just over half of all private sector employees, pay 44% of total U.S. private payroll, and have generated 64% of net new jobs over the past 15 years.  They also account for 39% of our country’s gross national product.  The Small Business Jobs Act that President Obama signed into law in September 2010 addresses the impact that small businesses have in our communities with a series of proposals including the SBLF.

What does this movement in support of small businesses mean for us in Harford County?  Unfortunately no Harford County Banks were one of the total of 23 banks which have received support to date.  But that isn’t then end of the story.  More funding will be distributed to more community banks in the months to come.  So encourage your local bank to apply for funding.

If you do business throughout Maryland or in Pennsylvania consider one of these banks:

• Centric Financial Corporation (Harrisburg, Pennsylvania) – $7.5 million
• Eagle Bancorp, Inc. (Bethesda, Maryland) – $56.6 million
• York Traditions Bank (York, Pennsylvania) – $5.1 million

The Cockpit Concept

Before implementing The Cockpit Concept

The next step in your office reorganization project is to organize your desk surface.  Clear everything off your desk.  Ask yourself, would your computer monitor work better in another location?  Once you have determined the location of the monitor, sit at your desk.  Place the most used supplies and equipment (stapler, tape, pens and pencils, notepads, phone, etc.) within easy reach on the desk surface or within drawers.  This is called the cockpit concept.  Other than these supplies, nothing except your current project should be within the ‘cockpit area’.

Relatively close to the cockpit area you will have five filing systems.

• Inbox
• Outbox
• To-do Box
• To-file Box

To help keep the clutter down, learn to make fast decisions.  The biggest clutter culprit is procrastination.  Try to take the next action every time you touch a piece of paper.

The Inbox            The inbox is for mail and incoming documents and should be emptied at least every 24 hours.  Go through each item.  You have four choices.

1. Do it – You can do the task, item, or activity.
2. File it – You can file the item, either in the to-file box, the to-do box, or the outbox.
3. Delegate it – You can delegate the task or activity.
4. Dump it – Lastly,ou can throw it away, shred it, or recycle it.  If it is junk mail, add it to a list of organizations to email or call to be removed from their mailing list.

The Outbox        Things to be mailed or hand delivered should be placed in the outbox.  Remove items from the outbox when you leave your office and take them to the appropriate locations.

The To-Do Box  Pending items should be placed in the to-do box.  This box should be reviewed every morning and tasks completed for the day.  You may not be able to accomplish everything within your to-do box each day, but each time you handle something from your to-do box, do something with it.  Make the phone call, add it to your tasks, send the email.

The To-File Box  Put all paperwork which needs to be placed in the files in the filing cabinet in the to-file box.  File everything from the to-file box at the end of each week.

The Current Projects File

The fifth filing system is the current projects file. It holds the most used files for the day or week.  It can also hold frequently used reference materials.  The current projects file takes the form of a standing file holder located within easy reach on your desk.  This file holder keeps the files vertically, preferably in a stair step fashion.  This makes the files easy to see and use.  The purpose of the current projects file is to eliminate time-consuming filing and searching for files.  In order for it to be useful, only current projects should be placed in this file.

After implementing The Cockpit Concept

Sign up for the Benchmark Newsletter to learn about the next steps for your office reorganization strategy!

Next month on the Benchmark Blog:  Dealing with the IRS – 1099 issues

The Purging Process

also known as The Great Gutting or more commonly:  Spring Cleaning

The first and most difficult step towards an office reorganization project is the Purging Process.  This process eliminates all unneeded, unwanted, and useless paperwork, equipment, and supplies.  Ask yourself, “Do I really need to save this?”  “If I throw this away, can I get a copy of it elsewhere?”  If you haven’t used it with the last year, you don’t need it for reference, and you don’t need it for legal reasons, then you don’t need it.  Clean out your filing cabinets.  Go through your planner.  Tackle the bookshelves.  Clean up the corkboard.  Remove all unneeded equipment.  This includes all pens and markers which do not work.  Take paperwork, books, files, etc. to their appropriate locations.  Eliminate duplicates.  Go through all the things you’ve been ‘meaning to do’ and either do them or throw them away.  Call or email all the junk mail you receive and ask to be removed from the lists.

The files, equipment, and supplies that are left are the ones you need and the ones that will be filed or used.  Place the remaining paperwork in two piles; one for long term storage and another for easy reference filing.  Take all files for long term storage and place in cardboard filing boxes.  Take these files to a long term storage location. 

The Purging Process is an ongoing one.  Each year, you’ll take a look at all your files and get rid of anything that you haven’t used in the last year, which you don’t need for legal reasons, or is outdated.  Do the same for your computer files.  This is spring cleaning for your office.  Choose a time of year that is generally slow for your business, typically in July or August.

This is only the first step toward a more organized office and life, but it is by far the most important.  Once you are finished with this process, you will begin to see much more clearly what you need.  When the clutter is gone, your mind will be uncluttered too. 

Sign up for the Benchmark Newsletter to learn about a complete office reorganization strategy, including what to do with that second pile of paperwork for easy reference filing!

Next month:  The Cockpit Concept for organizing your office

We’ll be selecting blog topics based on our experience in working with business owners and non-profit organizations.

We hope you enjoy reading our posts and invite you to “add your two cents” on posts that you can identify with.  We look forward to blogging with you!  Stay tuned!

Best,

Sharon Epple