3 Things You Should Know About Small Business: Feb. 2
NEW YORK ( MainStreet) -- What's happening in small business today?
1. Legislation seeks to curb 1099-K requirements. Congressman Aaron Shock (R-Ill.) introduced on Wednesday legislation to prohibit the IRS from implementing the 1099-K form because it creates an unnecessary reporting burden on small businesses. It's called the 1099-K Overreach Prevention Act, H.R. 3877.
Republican John Thune of South Dakota plans to introduce the same legislation in the Senate.The Housing and Economic Recovery Act of 2008 requires the IRS to collect a document known as a 1099-K from third-party payment entities such as credit card companies. The 1099-K will show all credit transactions within a merchant's business for a given year. "Unfortunately, the IRS is using the 1099-K to add additional burdens on small-business tax forms by requiring them to reconcile this report with the merchants' own internal numbers, which was not the original intent of the law," the press release says. Customers asking for cash back, returning merchandise bought on credit for cash or collecting deposits for rentals can all lead to discrepancies when reconciliation occurs. 2. Eight things your employees need. Pay raises and better benefits can go only so far with employees. Inc.com came up with eight things to offer employees to get them performing at top levels to improve their commitment to the company and task at hand, work ethic and motivation. Business owners need to give workers freedom, as in "don't micromanage every task" set upon employees; goals, which create a sense of purpose; and mission, to feel included in the bigger achievements of the company. Along with this, owners and heads of companies should set expectations; provide input; and look to connect with their employees. Finally, employees need consistency when it comes to decision-making; and an awareness that if the job is done right, it can lead to "something more, either within or outside your company," the article says. 3. Small businesses' share of exports rising. Bloomberg reports that small and midsize businesses have increased exporting, a good sign for President Barack Obama's target to double U.S. sales abroad by 2015. Small and midsize companies accounted for 35% of exports in the third quarter, up from 32.8% in 2009, according to census data cited by Bloomberg. Still, some observers say the increases are not big enough, even with the effort by the government to help U.S. companies in their export business. Loosening export restrictions, such as those on selling components of military technology that may have commercial uses could help, the NSBA says. -- Written by Laurie Kulikowski in New York. To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com. To follow Laurie Kulikowski on Twitter, go to: http://twitter.com/#!/LKulikowski
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