Most people heard right away when the announcement was made that every taxpayer would receive a stimulus check for $600. The rest of the stimulus package for 2008 pertains specifically to small and medium sized business owners. As we settle in to the final months of this calendar year you still have a little time to take advantage of the additional stimulus benefit.
As you probably know, Congress passed the Economic Stimulus Act of 2008 which is intended to jump-start our economy, in part through tax incentives aimed at encouraging businesses to increase their investments in new equipment by the end of 2008. Under the Act, small businesses will be able to write off up to $250,000 of qualifying expenses in 2008. In addition, businesses will be able to deduct an additional 50% of the cost of certain investments in 2008.
Not sure what this means in terms of tax relief to your specific company? There are some stipulations to know and a list of purchases that do not qualify. If you’re thinking about adding equipment or a potential qualifying purchase in the near future, call our office right away at (618) 632-1994 to discuss your options and what tax advantages could be waiting for you. Don’t delay because next year’s depreciation limits have not yet been established and they may return to previous levels without advance notice!
To Outsource or Not to Outsource?
As a small business owner saying there are a lot of demands for your time and attention is an understatement at best. Everything ultimately stops at your door; Beginning with delivering on promises made to Clients, evaluating business development opportunities, staffing requirements and marketing initiatives, to ensuring compliance with government regulations and cash flow. You are the final decision maker.
Those who have never ventured into the unchartered waters of entrepreneurship for themselves may have difficulty in relating. Until someone has felt the anxiety in the pit of their stomach worrying how to fund the next payroll or known the exhilaration of seeing their life’s dream come into reality it’s hard to fully appreciate the dynamics of running your own business. It’s a unique experience unlike any other.
When you found your particular niche to fill in the marketplace, it may not have come complete with all of the other answers you would need related to optimizing day-to-day operations of a going concern. Among the many decisions to be made were those related to outsourcing; deciding which business functions to incorporate into your infrastructure and those best served by expert support services.
Search the web and you’ll find posting after posting of articles and blog entries discussing the “cost vs. benefit” argument for outsourcing your company payroll. Payroll is among the first functions to be outsourced by many. Between the time required for the payroll processing itself, maintaining current rates, and mastering the multitude of software upgrades, many business owners find outsourcing their payroll is a cost-effective alternative to adding additional staff. In addition, eliminating the IRS penalties for payroll reporting errors also saves small business owners on average $842 annually.
These tough economic times demand that you make the most of your talent resources to remain profitable and successful. Every business owner should asses the benefits of outsourcing separately. Start first with an evaluation of the primary strengths and skill sets of your existing team members and the time requirements for primary core functions that cannot be outsourced.
If you are ready to consider the benefits of outsourcing your payroll please contact Payroll Central, a division of Rickhoff & Associates at (618) 632-1994 to find out more.