Georgia Business Blog

Unclaimed Property Consulting

2012-01-24T11:12:00.000-05:00

If you are wondering what I've been up to lately, I am now with Barganier and Associates, a leading firm on unclaimed property consulting for Fortune 500 companies. I am now blogging for Barganier.

Business Succession Planning

2010-04-16T17:06:00.013-04:00

My client list contains many businesses that are family-owned and operated with plans to leave the business to the next generation. There are many issues to consider if you plan on doing this in the future.

I'll leave the legal aspects to a post some time in the future. But for now, if you plan on leaving your business to a family member, keep these things in mind.

Incorporation Have you incorporated? Sole proprietorships legally die when the owner dies. They are not good vehicles to hold the business interests. So first, consider incorporating your business.
Separate Business and Personal Finances You will want to make sure that all your personal and business expenses stay separate. Many people will mix the finances for various reasons, mostly because of ease. For more than succession planning, this is not a good idea - tax and corporate veil protections are additional reasons not to mix personal and business finances.
Minimize Debt If possible, you will also want to minimize the debt load of the company. Your family members will appreciate getting a business without a lot of debt. Furthermore, you are probably personally guaranteeing much of this debt. When you leave the business, you will not want to worry about the business defaulting and these creditors coming after you.
Involve The Family Member You'll also want to get the family members involved as soon as possible. Make sure they are on board with the idea of taking over in the future. Then you will want to train them in as many aspects of the business as possible. You will want to introduce them to important clients and vendors and let them develop their own working relationships with them. You will want the employees to trust the incoming family members so that when they eventually do take over, there will be no interruption in operations.

For now, though, these are some practical steps that you should be taking to make sure that the business will be suitable for passing along.

Hire Slowly, Fire Quickly

2010-04-12T14:23:00.001-04:00

When your company is going well, you probably decided to hire someone. You collected resumes, sifted through them to interview a few people and then made a decision, after maybe one or two interviews. You may or may not have checked references. Now, you have found out that the new employee just does not fit with your organization and it is time to get rid of them. The saying "hire slowly, fire quickly" and the many variations of it are rooted in some basic HR strategies.

Hire Slowly
By spreading it over several days or even weeks, you allow yourself to really think about what you want in an employee. Do you want someone that will challenge the status quo or go along with it? Is organization an important aspect of the job? How difficult are you, as the boss, to work with? Do you need someone that will keep you in line and on task?

Taking the time to learn about your potential new employee is worth its weight in gold. Checking references is a good thing, even if all you get is a confirmation that they did in fact work there during the dates stated on the resume or application. Sometimes, you'll get a past employer to speak about the quality of work and the applicant's personality. You can learn both good and bad things about the applicant.

Fire Quickly
Once you have determined that an employee is not the best fit or has done some type of misconduct worthy of firing, you should do so quickly. Don't wait around for weeks or months, expecting the employee to suddenly start producing better quality work.

However, there are a few things to remember:

Don't react emotionally. If something happens unexpectedly that requires immediate termination, take a few moments to collect yourself and to document what the employee did wrong. It may even be best to send the employee home for the day and do the termination the next day.
Consult with your business attorney. There are many things to consider when terminating an employee. What forms do you need to provide to the terminated employee? Do you need to offer any kind of severance package? You do not want to set yourself up for later liability because you handled the termination badly.
Mentally Rehearse the Meeting. It is best to do terminations in person. Just like you don't want to be broken up with on a Post-It note (see Carrie in Sex and the City), have the guts to do the dirty business in person. However, before you are in the meeting with the about-to-be-terminated employee, know how you want the meeting to go. Anticipate questions - last paycheck, health insurance, unemployment, and severance. And know how you will respond to each question.
Know what your employee had access to. Remember to collect the keys, passwords, company property, and such upon termination. Know how to turn off their access to company servers. Know which customers need to be notified. If they had a company credit card, make sure to cancel it immediately. In the meeting, ask the newly terminated employee for as much information as you can. You can even ask them, "is there anything that I need to know about your job?" Yes, even at termination, most employees are willing to provide the information if you handle the situation respectfully.

Glimmer of Hope for Georgia

2010-04-06T16:50:00.000-04:00

It may not be much, but Georgia showed another positive sign in March with the first month of increased tax collections. March 2010 showed a 1% tax increase over collections in March 2009. It was the first time in 15 months that monthly tax collections rose over the same month the year before.

March's numbers were boosted by an increase in corporate income tax payments (businesses showing just under a $12 million increase from the year before).

Don't get too happy, however. There is still lots of work to do in Georgia because we can claim that we are even on the road to recovery. But several indicators are looking like we may be getting on the on-ramp.

AJC | Atlanta Business Chronicle | Macon Telegraph

Companies Must Be Represented By Lawyer in Court

2010-03-15T17:14:00.000-04:00

Many small business owners believe that they can represent their companies in court. If you have incorporated your business, then the business is considered a "person" in the eyes of the law. You act as an agent on behalf of the company. If you represent the company in court, you are representing another person as surely as if you were representing your neighbor on a DUI charge. You would not be allowed to do this as only a licensed attorney can represent another person in court. Otherwise, you are committing unauthorized practice of law, and the Court looks down upon this.

Remember this next time your company gets in a dispute with someone else. You can use this aspect both to your benefit and your detriment. Yes, you will have to hire an attorney to represent your company but so will the other company.

Small Business FREE Tune-Up Webinars

2010-02-22T14:36:00.001-05:00

Starting this Wednesday, the Georgia Entrepreneur and Small Business Program is hosting a free webinar series focused primarily for the small Georgia manufacturer. However, all businesses are welcome to participate.

The first four webinars include:

What to Do Before and When OSHA Comes Knocking
February 24, 2010, 12:00 noon

Generating Sales and Boosting Profits in a Difficult Economy
March 10, 2010, 12:00 noon

Pending Employment Laws That Could Rock Your World in 2010!
March 24, 2010, 12:00 noon

Driving Down Costs to Accelerate Profits
April 14, 2010, 12:00 noon

To see more information about these webinars or to register, go to GA-ESB website.

Saving on Unemployment Taxes

2010-02-17T00:02:00.000-05:00

In the spirit of tax season, I am reminding you to always pay your state unemployment taxes.

As background, businesses withhold from employees' paychecks certain amounts for FICA (social security and medicare) as well as the employees' state and federal withholding. Employers also pay unemployment taxes on both the state and federal levels. Here in Georgia, the state agency that ensures compliance as well as pays unemployment benefits to employees is the Georgia Department of Labor. Like many state agencies, the Georgia DOL is hurting financially under the burden of the unemployment rate and paying benefits.

The states have teamed with the IRS to give you a pretty good incentive to pay your state unemployment taxes: if you don't, your federal unemployment tax rate will skyrocket. This is also no idle threat. The state unemployment agencies typically have very good relationships with the IRS and will communicate to them your lack of payment. Even in good times, the Georgia DOL has been very proactive in making sure Georgia employers pay their share of the unemployment burden. With the economy remaining in pretty bad shape, they have only increased their collection activities.

Procrastinating On the Unpleasant

2010-02-09T18:26:00.000-05:00

Management consultant after business coach will tell you that you cannot procrastinate on unpleasant tasks. You have to get them done no matter what. Perhaps it is that phone call to the client that does not pay their bills. Or the installing the new computer/technology system.

But how many times have you told yourself after the fact, "that was not as bad as I thought it would be"? No, you don't have to always do them as they come in. But you also cannot put them off forever. Instead, devote a set time every week that is just for the unpleasant tasks. Make it a scheduled, regular time, if possible. But spend some time every week, at least an afternoon, to deal with the unpleasant. Fire that client. Clean the office. Do your taxes.

Then, as a treat to yourself, go get a mani/pedi.

Traditional Methods of Marketing

2010-01-26T14:23:00.000-05:00

Earlier this month, the Wall Street Journal ran an article about businesses stopping direct mail campaigns due to budget concerns amid the recession. (See Article Here in New Window) This is just another reminder that sometimes you have to spend money to make money. And sometimes it is the traditional methods that work the best.

I am not suggesting that you unnecessarily spend money for the sake of spending money. You do have to be smart about it. But even in today's economy, with microscopic budgets in every aspect of the company, you still have to get the word out to your customers and potential customers. Your business is not a field of dreams, and the customers will not come because "you built it."

For small businesses, particularly in service industries, you are often selling yourself. This means that you have to do what politicians call "pressing the flesh." You have to network and meet people. Not everything can be done with social media interactions. Attending a live, in-person event can be the best thing that ever happened to your business.

For all businesses, whether providing a service or a good, traditional methods of marketing, like the direct mail campaigns mentioned in the WSJ article, are still viable methods in today's economy. You still see real agents putting out signs in front yards. You still see insurance agents giving out pens with their names and phone numbers on them. Why? Because these are tried and true methods that get their names in front of their potential customers.

Don't forget that you have to market offline as well as online.

Hiring in a Depressed Economy

2010-01-21T15:14:00.001-05:00

The overall economy may look as depressing as the clouds outside today, but that does not mean there that the sun is not shining behind the clouds. Your company may still be doing well, even thriving, right now. You may even be looking to hire additional employees right now. Congratulations if you are in this boat.

So where do you look to find help? Most likely, using the local newspaper to place a job ad no longer works to find qualified applicants. Even those individuals that are looking for a job without a high school diploma are looking online. Of course, you already know this. So where do you post a job ad?

First, start with the free places. Your company's website should have a place for job seekers. This is even good for your clients to see. If you are hiring, you are more likely to be here tomorrow and able to continue providing your services or goods. There are other websites that allow free job postings as well. Try your local chamber of commerce and other local websites.

LinkedIn also offers job postings, but they are $195 for 30 days. Remember that their audience tends to be educated professionals and students about to graduate. If this is what you are looking for, then it is a great place to find someone. If you want to reach a broader market, you can also try Craigslist. For $25, you get a job listing in the Atlanta market for 30 days. There are additional job search boards - from Monster to Indeed - that also require fees to post an open position.

Once you have the position publicized, then you get to start collecting resumes. I do recommend that you don't use your primary email address to collect the resumes as you will be bombarded with them. Set up a new email address on your website or get a free one from Gmail.

One thing that you will quickly realize in this market is that you will be receiving resumes from people that are obviously overqualified. Sometimes this is good, as you can bring in a wealth of knowledge and experience for a salary less than you would otherwise. But there are some major drawbacks. Your new employee will not be happy for long in the new position for which she is overqualified. This could lead to a continued job search or asking for a promotion to a position for which she is qualified. Her salary expectations will most likely not be in line with what you are offering. Don't expect her to stay in the job for very long.

If you find that you are not receiving enough qualified applications, it may be time to turn to a placement firm. There are many out there, some of a general nature, some targeted to specific industries or job types. I have worked with several over the years, in different industries. Contact me if you need a referral to one that will meet your needs.

Remember that during the hiring process, you should follow all applicable anti-discrimination and equal employment laws and principles. You don't want to put your thriving business in trouble by being accused of discriminating.

Social Media and the Small Business

2010-01-19T10:00:00.003-05:00

Facebook, LinkedIn, Myspace, Twitter. These are just a few of the most popular social media outlets out there today. Then there are a myriad of options out there in specific industries. For example, I maintain profiles on legal sites like AVVO and JD Supra. There are bound to be several such sites for every industry imaginable.

So what is a small business owner to do? There are several items that must be considered. First and foremost, the small business owner wants to use social media to get the word out to current, former, and potential clients. This is the direct marketing that most pundits promote, so I am not going to spend much time on it. There is a wealth of information out there on how to use social media to promote your products or services.

But wait, there’s more for you as the small business owner to consider. You probably want to claim all the generic terms and pages out there for your company so as to control negative attacks on your business. In the age of instant communication, you must be willing and able to respond to attacks on your reputation. Sometimes that means just being able to hit the search engines with more good publicity to overwhelm the bad publicity. Sometimes it means talking directly to those with the bad opinions. But you must be aware of it, even if you do not like to read about it.

Also, as the owner, you may want to delegate the tasks of maintaining your social media presence to an outside company or a staff member. Before you make the delegation, you should understand all the basics and create basic policies and guidelines for others to follow. How often do you want them updating your presence? What happens if there is negative coverage out there? How well do they know your business?

Finally, you may also want to consider creating policies about employee’s use of social media. While you will not be able to stop them from using the various outlets for personal reasons, you may want to include policies about their use of your business name or mention of your business.

Returning With A New Name

2010-01-18T21:02:00.000-05:00

I'm back! At the end of 2009, I ended an 18 month consulting job with a regional law firm. I had been working with them, part as outside consultant and then as an employee, to help their business run better. It was a case study in turning around a company.

When I started in June 2008, there was a lot of work to be done. Clients had to be billed. Office policies had to be put into place. Vendor relationships had to be properly established, including some re-negotiations on existing contacts. Company visions had to be developed. Human Resources files had to be created. Technology solutions had to be evaluated, investigated, and improved. All the while, the practice of law had to continue. It is a litigation firm, after all, and the courts wait for no one. So for 18 months, I worked with the partners (the make-up of which changed over time) to make the business run. By the end of 2009, the firm was a different beast than when we started.

With that consulting beast tamed and running better than ever, I am able to expand my pursuits to more businesses. As part of that, I am re-launching this blog as a FREE resource to all those business owners and managers out there that can benefit from my continuing experiences and knowledge.

So, here's to a successful 2010 for all the small businesses out there!

Another Minimum Wage Increase

2008-07-29T18:31:00.001-04:00

Just a reminder to all the employers out there: Effective July 24, 2008, the federal minimum wage increased to $6.55. Georgia does not have a different/higher minimum wage and follows the federal standard. Thus, the minimum wage for all Georgia employers/employees is $6.55.

Life Insurance Trusts

2008-07-14T20:23:00.003-04:00

Many families have life insurance policies on the parents, especially while the children are minors. The idea is to provide financial support for minor children and to provide liquidity in an otherwise illiquid estate. But if your estate has any sort of assets, your estate may run into tax problems - you'll owe money to the IRS. This can sometimes be avoided or minimized with a life insurance trust.

A life insurance trust is a separate entity apart from the insured so the policy is not included in the insured's estate. But there are many rules to follow when setting up a life insurance trust to make sure that it is properly segregated from the insured's estate.

First off, the life insurance must be an irrevocable trust. This means that once you make the trust, you cannot change the terms of the trust. This also means that you, as the insured, will not be able to change the beneficiaries of the life insurance policy.

Second, you must name a trustee that will manage the trust. You cannot be the trustee, and if you are named as the trustee, the insurance policy will be included in your estate (the objective being to keep the policy out of your estate). Often times, you will see the family accountant or attorney named as the initial trustee.

Next, the irrevocable life insurance trust must own the life insurance policy. This can be achieved in basically two ways: the trust may purchase the policy or the insured may gift a pre-existing policy to the trust. If a gift is made, then the insured must live at least three years or the policy will still be included in the insured's estate. If the trust purchases the policy, it must obtain the cash in order to do so. In the typical trust, the premiums are obtained from the insured via gift.

This leaves a substantial problem - the gift of a future interest. The gift would still be included in the insured's estate. The solution: Crummey letters, named after the case that first presented this solution. In the typical Crummey letter solution, the Grantor/insured makes a gift to the trust, then the trustee sends a letter to the beneficiaries stating that they have the ability to withdraw the gift for a certain period of time. Once that period expires, the trustee then uses the cash to pay the annual premiums. By giving the beneficiaries a right to withdraw the gifts to the trust, the premiums become a present interest and thus excludable from the insured's estate.

Once the insured passes on, the policy is paid to the trust. The trust is then distributed to the beneficiaries (typically the insured's children) according to the terms of the trust set up at the beginning.

Irrevocable Life Insurance Trusts ("ILIT" for short) are good vehicles to provide liquidity to estates, but still be able to avoid estate tax consequences if done properly.

New Postage Rates

2008-05-09T14:21:00.001-04:00

Just a friendly reminder: postage rates go up May 12.

For more information, check the US Postal System website.

Want Your Stimulus Check This Spring?

2008-03-20T15:49:00.004-04:00

The IRS has announced the timeline for releasing the stimulus checks. The best way for you to get your payments early: file electronically with direct deposit information included, and do so early enough for the return to be processed by April 15.

The exact date that you will get your stimulus payment depends on the last two digits of your social security number or the first one, if filing jointly.


DIRECT DEPOSIT

Last Two           Payment
SSN digits:        Date:
 00 through 20     May 2
 21 through 75     May 9
 76 through 99     May 16
 
PAPER CHECK

Last Two           Payment
SSN digits:        Date:
 00 through 09     May 16
 10 through 18     May 23
 19 through 25     May 30
 26 through 38     June 6
 39 through 51     June 13
 52 through 63     June 20
 64 through 75     June 27
 76 through 87     July 4
 88 through 99     July 11

If you file near or after the April 15 deadline, expect an additional two weeks to the schedule above.

Sales and Use Tax on Services

2008-02-26T17:59:00.004-05:00

I just received a call to action from the Georgia State Bar regarding Speaker Glenn Richardson's proposal for a constitutional amendment to repeal the collection of certain property taxes and to replace that revenue stream with an additional sales and use tax, this time on services. It has been hotly contested, in the newspapers, blogs, and other local media, throughout the fall.

Now, the House Ways & Means Committee has favorably reported HR 1246 and HB 979.

According to the email from the Georgia Bar, they oppose the new sales and use tax on services because it would interfere with the attorney-client relationship. (In some instances, just the fact that an attorney represents a certain client can be privileged information.) The Georgia Department of Revenue would have the ability, under its audit authority, to have access to a list containing the clients names and the fees paid. Additionally, businesses would be exempt from this tax, so only individuals seeking legal assistance would have to pay the sales tax. This is clearly a disparate treatment and could cause challenges to its constitutionality.

My practice is mostly geared to small businesses and their owners. Think about this from their perspective. Many of my clients will come to me for several issues, both personal and professional. For their company, I will write a buy-sell agreement or succession plan that has many estate plan implications. I will then write their Last Will and Testament and the rest of their estate plan. Part of their legal services will have a sales tax while the remaining part will not. There will be incentives for attorneys and clients to mis-categorize certain legal services in order to avoid the additional tax.

Think about what this will do for you and your attorney. Increased record keeping. More difficult and harder to understand bills. Increased costs for the individual consumers.

This tax does not apply just to your attorneys. It would also apply to many of the professionals that you see on a constant basis, including accountants and CPAs, dry cleaners, beauty technicians (nail, hair, massage), consultants, interior designers, doctors, dentists, and many more.

In addition to the burden on the professionals, remember that you pay your property taxes directly to your county, not the State. This proposed regime would remove almost all of a county's revenue collection authority and place it in the hands of the state government. Under the sales and use tax regime, all the sales and use taxes are paid to the State who then distributes the collected sales taxes to the individual counties. There is at least one current battle going on between a county and the state over the amount of sales tax that should be paid to the county. The State has also been known to rob one portion of its budget to pay for another portion of its budget. With the State handling the collection of sales tax instead of the county handling the property tax, do not be surprised if money would get cut off from the schools to fund another project, perhaps roads, water management, or public buildings or parks.

This is not a good deal for Georgia taxpayers, the counties, or the professionals that you deal with on a constant basis.

15 Costly Divorce Mistakes

2008-02-21T19:41:00.002-05:00

There's currently an article on MSN Money about 15 Costly Divorce Mistakes. They are:

Becoming a financial victim
Not considering mediation
Hiring a combative lawyer as punishment
Failing to recognize your enemy: the IRS
Not producing an accurate budget
Not evaluating a divorce settlement on an after-tax basis
Failing to use computer models to evaluate settlements
Bringing an emotional attachment to assets
Using your lawyer as a financial planner, therapist or messenger
Accepting a settlement that isn't as good as it seems
Disregarding the impact of inflation
Not waiting until a wife is eligible for her husband's Social Security
Forgetting to update estate documents
Failing to adequately insure the divorce settlement
Failing to develop a financial plan

All of these are good points; one thing to consider when hiring an attorney is their effectiveness at negotiations and mediation. Can they effectively work outside the court system to get you a settlement that you can live with after the divorce? Remember, your costs will go up - where there was once one house, there are now two. Two rents or mortgages, two utility bills, two water bills, two internet service providers, and the list goes on and on. Add in child support and alimony, and it will take some adjusting to before you are back on your feet. Work to minimize legal fees to help with the transition.

Taking Stock Before The Divorce

2008-02-12T13:28:00.000-05:00

Are you ready to file for divorce? Is your spouse threatening to file? No, I do not mean that you take any shares of stock that your spouse may own before you get divorced. But you do need to review where you stand before you file for divorce. Here are a few things that you should review as divorce becomes more imminent:

Take stock of your career. Are you earning enough money to support yourself and your children? Do you have the necessary education and training to go back to work, if necessary?
Take stock of your spouse's career. What is your spouse earning? Will he or she be able to support his or herself without support from you? Will he or she need additional training to return to work?
Take stock of your finances. As part of the taking stock of your career, you will need to look at the current status of your finances. Get copies of your recent tax returns, bank statements, and retirement and investment account statements. Catalog all the major assets that you and your spouse currently have. Did you or your spouse have any of them (pre-marital assets) before you got married? Do you and your spouse have any credit card debt? How much is left to pay on the mortgage? Any car loans?
Take stock of insurance plans. After you are divorced, you may no longer be eligible for your spouse's health insurance. Figure out if your employer can provide insurance if your spouse has been providing the insurance. Remember, if you will soon be a single parent, you will probably want to provide your children with adequate life insurance. You may also want to investigate disability insurance in case you cannot work due to injury or disability.
Take stock of major assets. The house, the car, the furniture, the big-screen television. List them all. Do you have valuable pieces of artwork, collections, or jewelry? What about a boat, airplane, vacation home, timeshare, or any other assets?
Take stock of your legal options. Most often, you will need to consult with an attorney. Often times, you may have rights to the marital home, bank accounts, and temporary alimony and/or temporary child support while the divorce is pending. Consult with an attorney to determine what, if any, additional steps you need to take.

Most of these options refer to your finances. That is because you will have to pay for all your own household expenses, without much help from your former spouse. During the divorce proceedings, you will need this information, much of it when you initially file or answer a complaint for divorce. It is often times easier to gather the information before you tell your spouse that you want a divorce.

In any event, if there has been domestic violence, do not wait to take stock of anything. You must protect your physical safety first and foremost.

Florida Joins Clemson, Auburn on Georgia Roadways

2008-02-08T13:53:00.000-05:00

The University of Florida is joining the ranks of Clemson University and Auburn University as the only out-of-state colleges with Georgia license vanity plates.

Hopefully, the Gator faithful can help defray the impact of the reduced state tax collections. In January, tax collections were down 7.1% or about $140 million from a year ago. Sales and income taxes account for the majority of the State's tax revenues. If tax collections do not increase, then the state could be looking at not being able to meet its budget for the fiscal year. The budget is approximately $20 billion for the fiscal year July 1, 2007 - June 30, 2008.

Quarterly Payroll Tax Reminder

2008-01-31T15:19:00.000-05:00

Don't forget to mail in your quarterly and annual payroll tax reports today. This includes your IRS 941 and 940 forms and Georgia state withholding and state unemployment quarterly reports. There are two state withholding reports this quarter - your quarterly report, G-7 and the annual report, G-1003. If your taxes were prepared by a CPA, then they will probably electronically file your W-3 with the IRS, but check the instructions from your CPA, as your individual CPA may handle things differently.

You also need to distribute to your employees their W-2s and to your contractors their 1099s today. The 1096 with the IRS copies of the 1099s needs to be filed by the end of February.

Where Do We Sue?

2008-01-17T12:34:00.001-05:00

One of the questions that I get most often is "where do we file the lawsuit?" The simplest and most basic answer to this is: where the defendant is. Generally speaking, the court where the lawsuit is filed must have jurisdiction over the defendant, also known as personal jurisdiction.

There are several ways for a court to get personal jurisdiction, but the easiest and most obvious way is for the defendant to live in the territorial limits of the court. For a business, this includes the county in which the principal offices are. In the case of multiple defendants, you can pick any court that has jurisdiction over any one of the defendants.

There are other ways for a court to get personal jurisdiction over a defendant. Another common way that courts get jurisdiction is by agreement. In many contracts, particularly in the business contetxt, the parties agree to the personal jurisdiction of a given court. This is often determined by the stronger or bigger party to the contract or whoever drafts the contract.

Georgia also has a long-arm statute that allows the courts of Georgia to have personal jurisdiction over out-of-state residents when they have some sort of connection to this state. Generally, that involves situations where the defendant was once in the state - think a motorist driving through the state that gets in a car wreck - or has significant connections to the state - think a business advertising for sales in a state. In those cases, you have to follow the statute to determine where the lawsuit will be filed, but it is most often filed in the county where the harm occurred.

The above aren't the only ways for a court to get personal jurisdiction over a defendant, but are the most common ways.

Employment Forms for 2008

2008-01-15T15:38:00.000-05:00

For 2008, the Georgia employment forms remain the same. However, the IRS W-4 and the Immigration I-9 have changed. All four forms are available through the DeCarrera Law, LLC website in the forms section.

Important Numbers for 2008

2008-01-14T20:24:00.000-05:00

The highest estate tax rate remains at 45% and the exemption amount (the tax free part) also remains at $2 million. Meanwhile, in an effort to reduce your estate, you may give $12,000 under the annual exclusion.

For retirement plans, you can defer up to $15,500 through a 401(k) and $10,500 through a SIMPLE plan. Meanwhile, the IRA contribution limits increase to $5,000. All three retirement plans have higher limits if you above 50 ($20,500 for 401(k), $13,000 for SIMPLE, and $6,000 for IRA). Remember that you must have earned income to be eligible for those plans.

Speaking of earned income, the Social Security taxable wage limit has increased to $102,000. It'll be a little later in the year, if ever, before you see those taxes disappear from your check. If you are under the age of 65 and retired (lucky you!), you can earn up to $13,560 without losing your benefits.

Meanwhile, the kiddie tax is coming after your little ones that don't actually work for their income. The threshold increases to $1,800 for children up to the age of 19 unless they are full-time students, in which case the age limit is 24 years old.

But if you have a nanny or household help, you have to withhold taxes on wages over $1,600.

Let Your Family Know About Your Accounts

2008-01-10T13:20:00.000-05:00

Even if you do not have a will, a trust, or any other parts of a complete estate plan, at least do one thing for your family before you die: Make a list of all your accounts with the following information:

Institution where the account is located
Account Number
PIN Number or Password
The name and phone number of the broker or account representative, if any
Estimated balances

The accounts you should be on this list include but are not limited to:

Checking and Savings Accounts at your primary bank
Checking and Savings Accounts at any secondary bank (think online Savings Accounts)
Retirement Accounts
Credit Cards
Mortgages
Safe Deposit Boxes
Insurance Policies

Also include information on how the bills are received (US Mail, Email, Website, etc) and paid (automatic draft, check, credit card, etc). Please do not leave your children in the dark because they do not know how to get the bill and how to pay for it. It is also helpful to leave your email addresses and passwords on this same list - often times you get notices or copies of bills at your email address that you may not receive in the mail.

Include on this list the name of any accountants or CPAs that may handle your tax matters, any attorney that you have worked with (especially if you have done any estate planning work with them), doctors, bankers, or other people that would have important information that your family would need to know.

After you have completed this list, let someone know where it is. If you want, you can seal it in an envelope to prevent disclosure of the information (you'll know when it has been tampered with). Do not leave it in your safe deposit box, however. If you are deceased, the bank will most likely seal the box until a court orders it opened.

If you fail to provide anyone with this information, your family will have to go through all your records to find this information. Some of it may be lost forever (if they don't know about that insurance policy, how can your family collect on it?) Your family will appreciate the fact that you were responsible and took the time to gather this information for them. Remember, you know best where your accounts are.