Welcome to DiVITA Speaks!!

IRS Sales Tax Calculator

By Benecia Beyer

The IRS is providing a new online tool to help individual taxpayers determine whether they might benefit by electing to deduct their state and local sales taxes. It's an interactive tool on the IRS government website that is designed to help make it easier for taxpayers to figure their taxes. (Did you know that the IRS is trying hard to reduce the taxpayer burden - that's an official quote from the IRS website !)

Taxpayers who itemize their deductions on Schedule A of the Form 1040 have the option of deducting the amount of state and local sales tax paid instead of deducting their state and local income taxes paid. Taxpayers can not take a deduction for both sales and income tax.

A new tax law enacted in late December reinstated the optional deduction for state and local sales taxes. Because of this late enactment date, the IRS previously announced that it would not begin processing returns claiming the sales tax deduction until Feb. 3.

To use the Sales Tax Calculator, taxpayers input their adjusted gross income, number of exemptions and zip code. The IRS estimates most taxpayers will get an answer in less than five minutes using the new tool.

The calculator is annonymous. Taxpayers do not need to enter their name or any other identifying information. To calculate what your sales tax deduction would be, you can use either the actual amounts paid or use sales tax tables that allow you to factor in the exact sales paid on certain specified items, such as a car, boat or material to build a house.

Here's the link to try it out !

Emergency! Emergency!

By Chloe DiVita

I should be starting the New Year off by wishing everyone well, but since I’m a bit at late at that I’m going to jump right in to one of my pet peeves. (But I really do hope everyone is jumping into 2007 with a fresh new outlook!)

One of my bigger pet peeves is the abuse of the red exclamation meaning “high importance” when sending emails. I do believe there are times when it is appropriate to use the exclamation. Say if there is something that needs urgent attention, immediate action, or ignoring it could result in major consequences. If that’s the case, by all means use it.

But, if you are simply providing information - even if it’s important information - if your work day (or the recipient’s work day) is not going to explode by not immediately reading and reacting to the email, then it’s not an emergency. It doesn’t warrant the red exclamation.

The main issue I find with the abuse is that the individuals who choose to use it over and over when it doesn’t seem appropriate end up crying wolf. So, if you abuse it, you end up negating its purpose anyway. There are a few individuals I work with who I don’t flinch when I see the little red exclamation attached to the email because experience has shown me that it rarely is an emergency.

I know I’m not the only one who feels this way because I’ve had several conversations about it. If you think you might be an abuser, it’s not too late to change!

LogMeIn Remote Access

By Chloe DiVita 

In this virtual age many of us are looking for easy remote access to our computers. The issue was a priority at DiVita. One of the “benefits” I give my employees is the option to work from home some of the time, like a certain day each week. I also traveled frequently this past year, but needed to be able to continue working. However, in order to do this efficiently, there had to be access to the work computer. Not just to access necessary software, but also to get email and information.

Originally we used a program that seemed to work. It got the job done, but with a noticeable lag that was sometimes unbearable. Personally, I hate to be slowed down by software.

Then, one of my employees found LogMeIn. There is a free version that simply gives you secure, fast access to the chosen computer. We started with this version, and were so happy with it, we upgraded. Now we have the Pro version, which allows us to print locally, transfer files, invite others to view our computer, and a few other useful things. It’s even reasonably priced! I am currently paying the same price as I was for our other service, but I get more options and instead of having only 2 computers on the account, I have 5.

There are other products offered by LogMeIn, like Remote Backup and a VPN application they call LogMeIn Hamachi. I have no experience with these products, but based on my experience with the company in general, I would be willing to try them.

I’ve run into very little issues with LogMeIn, and when I did need to contact customer support they were very quick to respond. That is always a plus!

If you find yourself unsatisfied with your current solution for remote access, or wondering what route to take, we at DiVita highly recommend LogMeIn!

Comparing Cell Phone Plans

By Chloe DiVita

Recently I’ve had the urge to review my cell phone plan, and compare it to everything else out there. The problem? I didn’t want to take all the necessary time to research each carrier and find out which one would suit me best.

Last night I saw a commercial for a website called LetsTalk.com. It was advertised as having information for all the large carriers in a comparable manner. The commercial was definitely cheesy, overacted, and deserving of its late night time slot, but the information I’ve found on the site is helpful.

Granted, not every cell phone carrier is listed here, and you are not offered information on adding items to your plan like email or text messages. However, for the purposes I was looking I was able to compare similar plans (family plans) for TMobile, Sprint, Cingular, Verizon, and Nextel here. And if you are only looking for an individual plan there are a few other carrier options here.

My point is, if you are looking to get a cell phone, or thinking about changing, LetsTalk.com can be a good starting point. If anyone out there knows of any other similar sites, I’d be very interested to hear about them.

How Much is YOUR Time Worth?

By Chloe DiVita

As a small business owner it’s important to have a price. Whether that price is for a product or a service, there has to be a price. A lot of time can go into coming up with a price. We have to be sure to cover costs, even indirect ones like rent and insurance, and hopefully earn a profit. Strike that. We MUST earn a profit. After all, that is the whole reason for being in business, right?

So, why do so many small business owners feel like they have to justify their price to the point of being worth it? It’s the business owner’s responsibility to be competitive, and justify the cost of services or products to that extent, but to have to prove worth on a continuous basis seems a bit ridiculous.

We are all in business, and our time has value. Let’s not forget that, and respect each others products, services, and prices. If it’s not worth it, we’ll quickly know.

Next time you get a $50 bill from your CPA for a 15 minute phone call, remember that you called him or her for a reason. Being an IRS interpreter should have some worth, and your 15 minute phone call probably isn’t the only one received that day. If he/she did not charge for those minutes the knowledge no longer has worth. And, if you don’t want to pay that $50 – whether it’s to your attorney, your CPA, your doctor, whoever – then see how long it takes you to answer your own question. All of a sudden $50 seems like a great value.

Microsoft Searches For The Next Big Idea

By Chloe DiVita

I wouldn’t call myself a huge Microsoft fan. They seem to have monopolized their industry in more ways than one, but I still use their products making me a part of the problem. However, I’m not sure I can get around that, so in some ways it’s a forced decision.

Right now Microsoft is looking for small businesses to submit their innovative ideas for a challenge. The winner gets $100,000 and a free years rent in an office space in NYC, among other prizes.

Do you have an idea you’ve wanted to invest in, but lack the capital? Here’s your chance. Submit your idea to Microsoft and cross your fingers. Maybe you can get something back for your years of investing in their products.

I learned of this challenge over at the re:invention blog. Kirsten Osolind has the links and info you’ll need to find out more.

Check it out.

Business Tips on Holiday Gift Giving

By Benecia Beyer

Generally, business gifts to clients and customers can be deducted against taxable income. But the IRS sets a limit, $25 per client/customer. There is no limit on the number of gifts you can give, only the value. And that $25 limit is per year. It does not include incidental costs such as packaging, insurance, mailing, etc - the IRS says the cost is incidental as long as it doesn't add substantial value to the gift.

When it comes to employees, the IRS looks closely at any and every form of compensation. Some companies reward workers with year-end or holiday bonuses. While employees might view this as a gift, the extra income is taxable compensation. The employer must withhold payroll taxes and the company is entitled to a deduction for the employee pay.

If, to promote employee goodwill, you distribute turkeys, hams or other merchandise of nominal value to your workforce at the holidays, you can deduct the cost of these items as a non-wage business expense. And your workers do not have to report the value of the gift as income.

The key is that the gift meets the IRS' de minimus standard. This means that its value is so low, taking into account how frequently you provide similar benefits to other workers, that accounting for the gift would be unreasonable or administratively impractical.

Cash, however, regardless of how little, is never considered a de minimus benefit.

You can also treat your workers to a holiday buffet and receive a tax gift for your company. The IRS Says that meals you furnish your employees as part of a "recreational or social activity" such as a company picnic or holiday party, are fully deductible.

And unlike usual business situations that involve food and beverages, neither you nor your workers are required to talk about business before, during or after the event.

H A P P Y   H O L I D A Y S   T O   Y O U !

Are You An Organized Manager?

By Benecia Beyer

Are you an organized manager? See if any of the following could be helpful to you.

1. Is your door always open? Can anybody just walk in to see you when they have a problem or question? Now that may sound like you are being a good "caring and sharing" manager but it's not good at all. As a manager, you need a time for acting and a time for reacting. When you are reacting, an open door is a good thing. You want to know how you can help people with their problems. However, when you want to be active - to get on with your own work - you have to free yourself up and not allow any interruptions, except for real emergencies.

2. Are you always busy or do you get things done? It's easy enough for a manager to appear busy. There are always people to talk to, decisions to be made, visits to be made. But do you really need to be involved in deciding what brand of toilet paper you buy? You need to concentrate your energies where they are most needed. And you need to finish things off completely - you need to see a result.

3.Do you try to do everything? Not all aspects of your job are equally important. You need to prioritize. If something is important or urgent, you need to deal with it. The unimportant and non-urgent tasks can be left for another day.

4. Do you let other people get on with their own jobs? Just as you need to have an uninterrupted spell for your active time, so do your subordinates. You cannot expect them to produce good work unless you give them the personal space in which to do it.

5. Do you plan your work? You need to spend a few quiet minutes every day thinking about what you have to do and deciding on the priorities. There is no point in rushing around like a headless chicken, constantly reacting to each new crisis. Plan some active time and some reactive time and try your best to stick to it. Decide what jobs are important and make sure you deal with them before they become urgent. It's the important and urgent jobs that will really stress you out.

We all go through periods of disorganization when we feel we cannot cope. When there is too much to do it can seem like we will never cope. But put a few minutes aside to think calmly about what you have to do and how you can best organize it. Those few minutes could save you hours of stress.

Healthy Habits at Work

By Benecia Beyer

Many companies are starting to sound like moms: They are pushing employees to eat their vegetables and go outside and play. And they are not being gentle about it.

L.L. Bean actually shuts down its manufacturing line 3 times a day for mandatory five-minute stretches, designed to prevent the most common injuries workers suffer. At retailer Replacements LTD, 250 employees take part in a walking program organized by the company nurse. T-shirt manufacturer American Apparel has 80 loaner bikes, locks and helmets for employees and hosted an employee screening of "Fast Food Nation", a film where the villain is the meat industry.

Mounting health care costs are driving the changes. Employee assistance company ComPsych Corp. runs what it calls "trainwreck exercises" in which insurance companies compute how long they can absorb healthcare cost increases before they become unprofitable. Health insurance premiums for 2006 rose 7.7% - twice the rate of inflation.

While some companies are responding to higher healthcare costs by cutting employees' coverage and shifting more of the cost to the employee, others are doing everything they can to convince employees to adopt healthier habits in the hopes they will avoid diseases caused or complicated by eating poorly and being inactive.

Because employees spend so much of their day at work, it is important that some healthy eating habits and exercise be incorporated into the work day. For example: if workers don't have access to fruits and vegetables on the job, they will need to consume between one and two servings every waking hour after work to meet the goal of eating 5-9 servings a day. And to reach the recommended 10,000 steps a day, sedentary workers would have to spend most of their evenings in motion.

Try to make some changes into your daily work lifestyle: incorporate little exercise breaks in the work day, park your car farther from the building, take the stairs instead of the elevator, organize a "walking meeting" instead of around the conference table.

Are you in sales?

By Chloe DiVita 

When I started my company, about 4 ½ years ago, I didn’t realize I was going to be a salesperson. But, when you own your own business, no matter what that business does, you must sell yourself and/or your product/service. I’m an accountant, not a salesperson. Yet, I found myself having to sell my services to potential clients.

I recently heard someone say that if you are a business owner, you are a salesperson. I never would have realized it before, but now I completely relate. In my industry people want more than just an accountant. They want some they can trust, someone they can rely on, and someone they can relate to. I’m usually able to show people what I have to offer pretty quickly, but I still don’t want to be a salesperson, and I still find there are obstacles to overcome. It's simply not as easy as saying, "yes, I can do that."

Anyone have any ideas for avoiding the game of the sale? I’m pretty sure it’s impossible, but am interested in your opinion too. Some tips would be appreciated as well!