What factors could make your company a better place to work? Here are four keys.

Respect. Show employees that they matter by providing them with necessary training, acknowledging outstanding work, and creating a healthy and upbeat workplace.

Fairness. Treat employees equitably. This applies, of course, to hiring and promotion decisions, but might also include sharing the firm’s success through a structured bonus plan.

A sense of pride. Most people enjoy working with a team that accomplishes something significant. Create this type of work environment and you’ll foster company loyalty. Strive to make everything you do - and everyone you employ - an integral part of the firm’s mission.

Opportunities. No one looks forward to a dead-end job. Give your workers an adventure to anticipate. Find ways to expand their horizons. For example, you might provide cross-training to develop new skills or encourage innovation.

Even if you can’t offer the best compensation package on the planet, satisfied workers can help propel your company forward. And they’ll let their talented friends know that your company is a great place to work.

Someone once said “An Inbox is as personal a space as an underwear drawer — we all have one and are all embarrassed by both its organization and contents.” Start 2012 off by applying some simple and effective methods to maintaining an organized and less overwhelming (or embarrassing!) Inbox.

A clean and well-sorted Inbox can save you valuable time and is less overwhelming and stressful. Email guru Debbie Mayo-Smith compares the Inbox to a filing cabinet; folders placed haphazardly in the cabinet defeat the purpose. Utilize the organizational structure provided by your email service and start by sorting your emails into Folders and reduce the pile-up.

Set up a time, preferably twice a day, dedicated to email sorting and organization. Take this time to focus solely on filtering your emails into Folders and assigning them levels of urgency. Utilise this opportunity to reply to your most time-sensitive emails.

Allow this time to go uninterrupted. Even consider turning off the New Email notification (if you use one) to limit distraction. 

Continue to scan emails throughout the day so as not to miss last minute or urgent messages but resist the temptation to deal with routine emails on the fly. 

“Employ the use of auto-replies to do some of the response work for you.”

One organizer suggested using the “Four D’s” when processing emails. Start at the top and assess each message according to the following:

1. Delete it

2. Do it

3. Delegate it

4. Defer it

This will give you a much needed start on what can seem to be an otherwise overwhelming task.

They suggest that sometimes as much as 50% of daily emails can be deleted, 30% delegated or completed in minutes and 20% deferred to be completed later.  

Utilize your email system to its fullest abilities. Take a few hours out of your day to explore your carriers’ options and really get to know its capabilities. Most email systems offer add-in programs designed to simplify and manage email organization.

Filtering emails is one of the easiest ways to promote and maintain sorting and upkeep. Filter however it works best for your needs; based on contacts, categories or subject lines and as messages come in they can be automatically relegated to their designated filter Folder.

Emptying your Trash Folder daily, creating To-Do and Follow-Up Folders and archiving important messages can save you mountains of time.

With a small amount of time each day you can take back control of your Inbox and improve your response time, reduce your stress levels and keep up with due dates and important notifications.

Your business can still get the credit, though. When you qualify, you can use it to offset your federal income tax liability by up to 35% of the cost of health insurance premiums you pay for employees.

Three general tests for eligibility are:

• Employing fewer than 25 “full time equivalent” employees.

• Paying average annual wages of less than $50,000.

• Paying at least 50% of health insurance premiums for those employees.

Each test has specific requirements. For example, you may qualify for the credit, in full or in part, when you have more than 25 employees. That’s because “full time equivalent” is based on hours your employees worked during the year.

In addition, some employees aren’t counted for purposes of the credit, such as seasonal staff who were on the payroll for less than 120 days. Other excluded workers are sole proprietors, owner/employees, and shareholders who own more than 2% of the stock of an S corporation.

According to a recent report, many businesses that qualify for the health insurance premium credit fail to take it. Give us a call. We’ll make sure you get full benefit of all the tax breaks available to you.

A “yes” answer can affect your federal income tax deduction for contributions to your traditional IRA.

For 2011 and 2012, the maximum contribution to a traditional IRA is $5,000 (plus an additional $1,000 when you’re over age 50). When you’re an active participant in your employer’s plan, how much of that you can deduct may be limited.

Not sure of your status?

Look at the middle box on line 13 of Form W-2 — the one labeled “Retirement plan.” When the box is checked, you’re considered an active participant.

The next question — should the box be checked? — can cause confusion for both employers who prepare Form W-2 and employees who use Form W-2 to file tax returns.

That’s because the rules differ for different types of plans. For example, when you’re eligible to participate in a defined benefit plan, you’re an active participant even if you choose to not take part. Your eligibility is enough to trigger “active” status.

For 401(k) plans, you’re an active participant when you elect to make contributions. If you decide not to contribute, you may still be considered an active participant, depending on what other amounts were allocated to your account during the year.

Please call if you need more information about the meaning of active participation. We’re ready to help.

Here are two changes.

• Health care costs. You’re not required to include the amount of insurance coverage you provided to your employees in 2011 on Forms W-2. When you have less than 250 employees, you’re exempt from reporting health insurance costs in 2012 as well. If you’re already tracking the costs, you can choose to report the information in both years, no matter how many employees you have.

  Note: The reported benefits are not taxable to your employees.

• Wages subject to social security. Social security tax (FICA) applies to gross wages you pay your employees, up to a “wage base,” or limit, that’s typically adjusted each year. The wage base for 2012 is $110,100, up from $106,800 in 2011.

  Reminder: There’s no wage base for the Medicare portion of the payroll tax you withhold from employees. All compensation is taxed at the current rate of 1.45%.

Give us a call for information on state payroll tax changes, as well as proposed federal legislation. It’s our job to help you keep up to date.

So what are the different ways of staying wireless? Firstly, there is WiFi (the acronym does not in fact stand for anything), wireless networks that will connect your device to the internet.

“Wireless gives you the ability to be connected to the internet without actual wires running from your device into a wall socket.”

If your device has a WiFi card inserted (most come pre- installed when purchasing) then your device will be able to connect anywhere with a WiFi connection. It usually means you must sign on to the network, sometimes with a password. This is usually what you find in public areas like airports or restaurants.

A Bluetooth connection links devices wirelessly with personal networks using short wave signals. Things like remote controls, garage door openers and wireless keyboards use this type of technology. With a Bluetooth connection you can wirelessly connect with other devices and share information easily.

3G/4G connections are what keep your Smartphone constantly hooked up to the Internet. The ‘G’ stands for generation, so the higher the number, the faster and more advanced the technology, meaning the faster you can connect and download or upload information. Phones like the Blackberry and iPhone come connected to a 3G/4G network that allows your phone to be hooked into a wireless connection at any time.

Other wireless options include a plug-in USB stick, which offers a sort of dial up connection to a network that is available wherever the signal carries. These sticks plug into your device and create a connection that you can sign in and out of and is secure to your device. Hot Spots are public areas in which an internet connection is available but in order to tap in you have to pay for a password and username. These are not usually worth the price and are last resort options considering all the other convenient possibilities on offer.

The law creates the “Returning Heroes Tax Credit” and the “Wounded Warriors Tax Credit.” Employers may qualify for a credit of up to $5,600 for hiring a veteran who has been looking for employment for more than six months. A credit of up to $2,400 applies for veterans who have been unemployed for more than four weeks but less than six months. Employers who hire an unemployed veteran with service-connected disabilities who has been looking for work for more than six months may be eligible for a tax credit of up to $9,600.

The credits apply to new hires after November 21, 2011, through December 31, 2012. For more information about the new law, contact our office.

Respond to customer inquiries with care. Customers need to feel that you’re listening to their concerns, needs, and complaints. If they call your offices and are shuffled around or put on hold while your latest marketing pitch endlessly assails their ears and wastes their time, don’t expect return sales. When they walk into your store, listen first, then offer advice. Even if they approach during a peak time, try to give them the courtesy of your undivided attention.

Don’t get defensive. Want to appear on somebody’s Internet video or blog? Be rude. Be irritable. Cut off customers before they have an opportunity to voice their comments or complaints. When customers have mistaken notions about your products or services, take a deep breath and explain the problem in a calm manner. Even if you feel personally attacked, never lash out at a client who, after all, has come to your business for help. Being cordial won’t please everyone. But most people respond better to honey than to vinegar.

Train your employees well. People aren’t born with good people skills. Such skills are developed. A good manager will take time to share his expertise with front-line staff by providing training classes and a personal example. If an employee can’t or won’t treat customers with respect, that person may need to be placed in a different position — away from clients. Good customer service also includes training staff on the technical aspects of your business. Employees should be fully conversant with your products and services, as well as your firm’s routine procedures and policies.

Your customers will notice.

Q. Can I deduct my sales taxes?

A. You’re allowed to deduct either your sales taxes or your state income taxes. If you live in a state that imposes no personal income tax, you would choose to deduct sales taxes, but you must itemize your deductions to benefit.

Q. If I live in a state with income taxes, should I just ignore the sales tax deduction?

A. Absolutely not. While those living in no-tax states (i.e., Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming) will receive the greatest benefit, many taxpayers residing in low- to middle-tax states will also benefit. And if your income (and state tax) is modest, it’s quite possible that the sales tax deduction will be greater.

Q. How is the sales tax deduction computed?

A. The IRS has issued tables that provide for the amount of anticipated sales taxes paid, given your income level. Of course, if you are inclined to keep your records, you can deduct the actual sales tax that you pay rather than using the IRS tables.

Q. How about “big ticket” items?

A. The IRS allows you to supplement the deduction allowed by the table with actual sales taxes paid on larger purchases. This includes vehicles (either purchased or leased), motor homes, recreational vehicles, trucks, vans, aircraft, boats, and homes. Mobile homes, prefabricated homes, and home-building materials also qualify.

Q. Would I consider claiming the sales tax deduction rather than my state tax deduction if they are virtually the same?

A. You might. Because of the tax benefit rule, state tax refunds that you receive are generally taxable to you on your federal return the following year. But that isn’t the case for the sales tax deduction.

Q. Can I also claim city or local sales taxes?

A. Yes, you can. The IRS provides a formula which will allow you to compute your city and/or local sales taxes and add them to your state tax table amount, thereby increasing your sales tax deduction by those amounts.

There is more to the sales tax deduction than meets the eye. Claiming it or not isn’t necessarily a “slam dunk” proposition. If you have questions about this deduction in your specific tax situation, give us a call.