Today's Technology for Tomorrow's Firm.
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September 2014 • www.CPAPracticeAdvisor.com 9 As November elections get closer, expect to hear a great deal more on the subject. Small business owners c a n t a k e s t e p s t o m i t i g a t e t h e impact. According to the National Fed- eration of Independent Businesses (NFIB), the small-business sector has historically created two-thirds of net new private jobs in the U.S. economy, however, this sector has been slow to recover in recently due, in par t, to a series of government policies. For instance, higher taxes, increases to health-care costs, more costly reg ulations, and minimum wage increases impact small busi- nesses' ability to recover and grow. H i stor ic a l ly, econom i st s have b e e n d i v i d e d o n t h e i m p a c t o f r a i s i n g t h e m i n i m u m w a g e o n businesses, and consequently on the minimum wage job market. Last year a University of Chicago poll of economists found that it will be much more difcult for people to fnd these jobs, suggesting a reduc- tion in employee hiring or hours. On the other hand, consumer spending and employee retention eforts may positively impact small businesses and minimum-wage employees. Here are six steps to prepare for potential negative impact. 1 Understa nd prof it ma r- g i n s , p r o j e c t i o n s a n d business requirements to ensure proftability. 2 Deter m i ne per m a nent h i r i n g v s . c ont r a c t i n g d e c i s i o n s f o r s t a f f i n g needs. 3 Make good hiring deci- sions - mista kes can be c o s t l y s i nc e t r a i n i n g / o n b o a r d i n g n e w employees is a consider- able investment. 4 I nv e s t i n e m plo y e e s - turnover decreases pro- ductiv it y and increases business costs. 5 Be sure to employ time and cost sav ing tools to standardize back of f ice t a s k s . C o n s i d e r o u t- sourcing to easy a ford- able ser v ices that al low you to focus on growing business not administra- tive functions. 6 Research competition and adjust pricing accordingly. A Year in the Life of a PAYROLL Accountant is sponsored by SurePayroll and ADP 6 Tips for Small Business Owners To Reduce Effect of Minimum Wage Increases R ecent legislation in many states to raise the minimum wage, various increases in some cities across the country, an increase on minimum wage for federal contracts, and ongoing pressure on legisla- tures to enact more increases, means small business owners face a constant challenge to build, sustain and grow their business in a difcult economic environment. Payroll Accountant's Checklist for September ✓ Replenish payroll-related ofce supplies ✓ Assess current payroll sofware for inefciencies and outdated features (see this month's reviews of pay- roll sofware) ✓ Start initial strategic planning for 2015 ✓ Help your clients run payroll adjustments for any year-to-date corrections ✓ Work with your clients to get necessary data from other departments to track any taxable payments to employees that were not made through the payroll department; tax and post any required adjustments ✓ Send client reminders about upcoming holidays and suggest they advice employees of any changes to deadlines for submitting time sheets during the holidays ✓ Review executives' nonqualifed deferred compen- sation plans to ensure the correct amounts are with- held from distributions ✓ Suggest that clients remind employees to review amounts in health fexible spending accounts to avoid forfeiting any amounts lef in the account at the end of the plan year