You must be very on top of things to be a self-employed entrepreneur. As your own boss, you are responsible for holding yourself accountable to do quality work. You also need to keep sufficient records in order to pay your taxes in full. 

Income Taxes

Just because you may not be working for a huge corporation does not mean that you don’t have to pay taxes. Whatever your business is, you are making money off of it, so you need to pay income taxes. There are a few exceptions to this. 

Sole proprietors, LLCs, and partnerships are not liable to income tax, but you still have to pay income taxes individually. This means that the company may not be taxed, but you as an individual will still be responsible for paying income taxes. 

FICA Taxes

FICA stands for the Federal Insurance Contribution Act. FICA taxes are federal taxes that all self-employed entrepreneurs are expected to pay. Entrepreneurs are often required to pay as much as two times the regular FICA tax standard for non-entrepreneurs. Forming an S-corp can help you reduce your FICA taxes by only paying them on your salary.

Sales Taxes

Depending on where you live and sell your product from, you will need to collect and pay a sales tax. Even if you are selling to consumers in other states, you still need to pay a sales tax on these transactions. To account for this, you should either factor a sales tax into the price of your products or add a sales tax. This will ensure that you get the correct profit you were planning on making on any sales. Being upfront about your sales tax, whether it is included in the price of your products or not, will help you build trust and understanding with your customers. 

Paying your taxes is crucial to maintaining a legitimate, sustainable business. If you don’t pay your taxes, you can get into a lot of trouble with the IRS. You may end up having to pay a lot more in the future or even having to forfeit your business to settle tax disputes. If you don’t know how to pay your taxes or handle your finances well, you may consider hiring a professional to help you. With a professional on your side, you won’t have to worry about missing important dates or payments. 

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Are you starting the hiring process at your company soon? Hiring new employees can be extremely stressful, especially if you have a history of hiring employees who weren’t a good fit for your company. Here are a few things that you should ask every potential hire to submit when applying to your job posting.

A Resume

First, you should require every potential hire to submit a resume when they’re applying to your company. A resume will help you to learn a lot about an individual. A resume will help you to learn about the history of their education, experience, and skills. It might reflect other jobs that require the skills and experience that you’re looking for in a potential hire. 

It will also help you to learn about their writing and organizational skills. A messy resume with lots of grammar and spelling errors might indicate that your potential hire isn’t well educated or doesn’t take sufficient time on their job applications. Make sure that you know what to look for in a resume before you start screening applicants.

References

Next, you should ask all of your potential hires to submit references as part of your required job application. References are usually contacts who have worked closely with an individual and could speak to their skills, talents, performance, and character. Character references can help you feel more comfortable about hiring an employee. 

When you speak to the references of a potential hire, you can learn more about their personality, work ethic, and weaknesses. This knowledge might not be demonstrated as obviously when you’re reviewing a resume or interviewing a candidate, since they can give expected and rehearsed answers. References can help you to find the best candidates for your company.

A Portfolio 

Finally, you can require your potential hires to submit a portfolio as part of the application process. A professional portfolio contains materials that showcase past projects your candidate has worked on. This portfolio can help to showcase their skills, qualifications, training, creativity, and work ethic. You don’t have to work in a creative, artistic, or visual industry to require a portfolio. However, if your industry doesn’t require a portfolio for applications, consider requiring your potential hires to write a cover letter. This can help you to learn more about them, their goals, and their intentions for a career at your company. A cover letter can also reflect a candidate’s ability to analyze, write, and communicate, which are essential skills in many jobs.

So, as you’re writing up your job postings and starting the hiring process, remember the tips in this article. Make sure that you ask every job candidate to submit a resume, references, and a portfolio. This can help you to find candidates with the best experience, skills, and temperament to work at your company.

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There are a lot of options out there when it comes to compensating your employees. You want to find a system that is fair and equitable, while also being affordable for your business. Here are three of the most common forms of employee compensation, and how they work. 

Stock Options

Many companies offer their employees stock options as a form of compensation. This can be a great way to attract and retain top talent, as employees can feel like they have a stake in the company’s success. Additionally, stock options can be a tax-efficient way to compensate employees. 

However, there is some downside to offering stock options, such as the potential for abuse. For example, employees may be tempted to manipulate their options to maximize their financial gain. As a result, it is important to carefully consider whether stock options are the right type of compensation for your business.

Matching Contributions

An HSA, or Health Savings Account, is a tax-advantaged account that employees can use to save for healthcare expenses. One way to attract and retain employees is to offer a matching contribution to their HSA. Employees can take their HSA dollars and spend them on health expenses like dental care. This not only helps to attract and retain employees but also helps to reduce the overall cost of healthcare. 

When employers offer a matching contribution to an HSA, they are effectively saying that they are committed to their employees’ health and well-being. This is a powerful message that can help to build loyalty and trust between employer and employee. The bottom line is that offering a matching contribution to an HSA is good for business. It’s a win-win for both employer and employee.

Benefits

There are many different types of benefits that you can offer employees as compensation. The most common benefits are health insurance, life insurance, and retirement savings plans. However, you can also offer other types of benefits, such as flexible work schedules, child care assistance, and tuition reimbursement. By offering a comprehensive benefits package, you can attract and retain the best employees. Furthermore, research has shown that employees who feel valued and appreciated are more productive and motivated. As such, investing in your employees is good for both them and your business.

Compensating employees fairly is critical for the success of your business. But, there are more ways than one to give them compensation. Consider giving these three types of compensation to your employees.

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When you run a business, you want to make sure you do everything you can to protect that business. Not only is it your livelihood, but it also represents a significant investment of time and money that you have made. While you can’t prepare for every eventuality, there are some basic steps that you can take to protect yourself and your business from liability.

Structure Your Business Properly

The structure that you choose for your business will depend on the type of business and what fits your business plan best but make sure you are taking a few things into account. As the owner of the business, you are responsible for the financial commitments your business makes, and some structures don’t do much to protect you. 

Sole proprietorships often have lower taxes, but they also open you up to unlimited personal liability, which means none of your personal assets will be protected. On the other hand, a limited liability company, or LLC, separates your personal and business assets. If your business is sued, your personal assets will be protected and vice versa. This is a big reason this is one of the most popular business structures.

Cover Your Insurance Needs

Businesses are legally required to carry a certain amount of insurance, but it may be a good idea to really look at what you need. Requirements will change depending on the size of your business and what industry you are in. At the same time, just because you have the minimum legally required coverage doesn’t mean you are adequately protected. 

If you have physical facilities, you may want to look into covering any assets stored there. Umbrella insurance is designed to supplement your basic liability coverage. This will continue to protect your business, in the case that you do end up liable for more than your business is worth. While hopefully, this will never happen, it can keep your business afloat if needed.

Keep Up to Date on Business Law

Laws can change at any point, and ignorance doesn’t really pass as a defense. It is important to keep up to date with changes in business law to make sure you are compliant with your state and federal laws. The most common laws that change are ones that deal with your employees and other HR issues. If you are unaware of a change and you aren’t compliant, you may leave yourself wide open to a lawsuit. If you have a business lawyer or HR department, they should be able to keep you compliant, but it is important to do the research yourself, so you know what is going on.

Liability is an unfortunate side effect of starting your own business, but you have plenty of tools to protect yourself and your hard work. Taking the proper steps can help reduce the risk and the impact that any liability can have on you. With any luck, all of your proactive steps will pay off, and it will be smooth sailing for you and your business.

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As an employer, you want to create the best workplace you can. This includes creating a pleasant environment for your employees and clients as well as designing an efficient place of business. Sometimes even the smallest change can have a huge impact. 

Energy Efficient Renovations

When you make renovations, it’s worth it to consider energy efficiency into the equation. Embracing energy efficiency can save your business money while also creating a more efficient environment. Some energy-efficient renovations to consider might include a smart thermostat, a new HVAC system, or energy-efficient windows. You can also make small changes to your daily practices that can help you save on electricity. These changes can reduce the amount of energy you use which will save your business money in the long run. Additionally, energy-efficient devices tend to work more effectively than their less energy-conscious counterparts. 

Painting the Walls 

The physical space of your business can also benefit from changes. You want to create a space that is inviting and engaging for your employees. Painting the walls of your space is one simple change you can make that can drastically improve things. The colors you choose for your business can affect employees’ moods. Shades of blue can be calming. Warmer colors can brighten the space and inject more energy. Take time to consider what sort of environment you want to create in your space. If you choose, you could get more creative and do some color blocking. Perhaps you could even include a mural. 

Add Some Natural Elements

While working, your employees are likely spending a lot of time indoors. You can liven up your workplace environment by introducing more natural elements. To start off, you should increase the amount of natural light as much as possible. Use sheer curtains or blinds that let in light while also allowing for privacy. Include more reflective surfaces in your office to increase the light. Next, you should bring in some real plants. These plants can add some color and life to the space. Plants also purify the air and create a calm environment. These small changes can make your workplace feel more alive and appealing. 

You don’t need to do major renovations or a massive overall of your office in order to create the “ideal” workplace. If you want to make things better, sometimes you just need to employ a few small changes. These can have more impact than you might expect. 

Check out this article on how to keep employees happy at your company!