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DOL Rules - What You Need to Know

Thursday, June 23, 2016

by Stacy Stolen

Real Value Consulting/VolkBell Insurance



The rules are here … now what?

Here's What You Need to Know

Anyone earning less than $913.00 per week; or $47, 476 annualized base:
• Is now (most likely) entitled to overtime pay for any hours worked over 40 in a week
• Is now required to track and account for all hours worked within respective time keeping periods

How you make and communicate required adjustments to an individual's current salaried compensation is up to you, and there are several options you might consider. Here are five simple steps you must take now to comply with the FLSA’s latest changes, and make sure you stay in compliance in the years ahead.
1. Increase salaries of current exempt employees to more than $913 per week or $47,476 per year. Exempt employees earning more than that will not be entitled to overtime.

2. Reduce bonuses for exempt employees whose overall compensation exceeds the new minimums. Increase salaries by the bonus amounts.

3. Reclassify exempt employees as nonexempt and pay them hourly. Of course, you will still have to pay overtime when they work more than 40 hours per week.

4. Reclassify exempt employees and pay them on a commission or fluctuating-workweek basis. Consult your attorney to learn more about the fluctuating workweek system, which pays a salary to nonexempt employees whose schedules vary from week to week.

5. Increase staffing levels to eliminate unnecessary overtime.

You can be assured that the DOL, which has already increased its investigative force by 33% since 2010, will put employers under even more scrutiny in 2017 by visiting many employers and auditing; be sure to reach out if you need more information!

Key People to Add to Your Business Team

Friday, April 15, 2016
  By Kat Rico
  

You’re in business for yourself, yes, but you should never be in business by yourself. In order to be productive, you need a team of people behind you! Here are some key people we recommend that you have on your side for better and for worse while you’re in business (in no particular order).
  1. Accountant – You don’t have time to learn all of the tax and bookkeeping ins and outs, and you shouldn’t have to. Of course you should have a basic understanding of the concepts, but an accountant can help you figure out where your business might be hemorrhaging money, opportunities to save on taxes, and whether you have adequate cash flow to hire that first employee.

  2. Attorney – Things happen. Contracts go bad. Maybe you said something you shouldn’t have. Whatever the case, your attorney is there to help you and go to bat for you. They can also help you before you make a potentially bad decision by helping you select an entity type, review a lease, draw up a standard contract to use for jobs and more. Along with your accountant, your attorney can be a strong business ally. The best option is to have an attorney before you need one.

  3. Mentor – This is a person who has business experience, preferably in your industry, that you can bounce ideas off of and will give you constructive advice without sugarcoating reality. Your mentor needs to be someone who doesn’t have a stake in the business (so no investors), they only have a stake in your success. Meet them once in a while and catch up on the good, the bad and the ugly of how your business is doing. Don’t use your mentor just to vent or brag, but to learn about how you can do your business better. As a shameless plug for our services, this is the best area where the SBDC can help!

  4. Banker – Don’t just have a bank, but a banker. A real person you can call at your bank when you don’t understand a fee, need to buy some equipment or need to order checks. Communicate with them on a regular basis. Your banker is your friend and can alert you to potentially fraudulent activity, but only if they know how you normally spend your business money.

  5. Marketer - Your marketer should be able to help you identify who your customers are, how to reach them, and understand if you're reaching them. The best description we've heard comes courtesy of our Social Media Specialist, Amy Alcorn, who told us, "Not having a marketing person for your business is like trying to flirt and winking in the dark." Don't invest money in advertising, online or otherwise, without talking to your marketer about your strategy.
Of course, there may be a couple of other people you want to regularly consult with about your business depending on your industry, but these are a good starting point to build a supportive network to help your business succeed.


7 Steps to Start a Business

Tuesday, April 05, 2016
  By Kat Rico
  


Ok, so it can end up being more complicated than 7 steps, but we’ll do our best to keep it concise for you. Do yourself a favor and hold off on the business cards until you’ve completed these steps.

*Full legal disclaimer: Depending on your industry, where your business is located, and the type of business you are operating, this may not be a complete list. As a business owner, YOU are responsible for complying with the law. Do your due diligence BEFORE starting your business.*


  1. 1. Location check – Where will your business be located? If you’re operating out of your home, you need to check with your landlord or HOA to make sure you are not violating any clauses about home based businesses. If you’re renting a space, verify with your landlord and the city/municipality that your business will not violate any existing zoning laws.

  2. 2. License check – Some businesses require special licenses that can take months to apply for. Colorado has an “Occupational License Database” online at: http://www.advancecolorado.com/business-colorado/occupational-license-database.

  3. 3. Local registration – You may or may not need to register your business with your city or county, you’ll want to check both to make sure. This can also vary if your business is home based. The key to look for is a “Business” section on their website, from there you should see information about potential licensing requirements. While you’re there, pay attention to how to pay sales and use tax if this applies to your business, you may need a separate tax license.

  4. 4. State registration – In Colorado, you must register your business with the Colorado Secretary of State. Again, look for a “Business” section and you’ll find information about how to register your business. The entity type you register as will affect your taxes as well as how much legal separation there is between you and your business, so choose carefully. It can also be difficult and expensive to change your entity type after you’ve started, so again, research is key. You can search here and make sure your desired business name is available in your state as well.

  5. 5. Federal registration – For tax purposes, you’ll likely need to register for an Employer Identification Number (EIN) through the IRS online. Your entity selection will affect how income from your business appears on your tax return and whether or not you’ll be responsible for paying estimated taxes.

  6. 6. Separate your banking – This is a really big deal, even for small single owner businesses. Set up a separate bank account! Your banker will need your EIN and to see you’re in good standing with the Secretary of State. Both your accountant and attorney will recommend you don’t ‘pierce the corporate veil,’ which in essence means that you are walking, talking and acting like a business, and this is especially important with finances. If you co-mingle funds or operate your business from a personal bank account, not only will your accountant charge you more to sort it out, but it can put all of your funds in a legally liable position if something goes wrong.

  7. 7. Walk the walk, talk the talk – Now you can do things like buy business cards, technology for your business, take jobs and make sales under your official business name. You’ve still got a long way to go towards building your dream business, but you’re going in the right direction!

Still lost? Check out our upcoming workshops for "So You Want to Start a Business" or "Make It Official" for classroom training, or register for consulting.

Call For Instructors!

Tuesday, October 13, 2015

Do you have valuable knowledge or a particular set of skills you'd like to share with small business owners? The Larimer SBDC is seeking instructors to develop and teach new classes for the Larimer SBDC beginning in January 2016. We are entering our planning stages now, so please submit your ideas and contact information to:

Terri Donovan-Keirns
terri@larimersbdc.org
Program Coordinator|
Larimer SBDC

We're looking for classes that will be unique and challenging for our entrepreneurs. Volunteering to teach a class with the SBDC is a great way to share your expertise with new business owners and contribute to a more diverse economic community. Contact us today!

10 Signs You Need Better a Better Understanding of Your Business Finances

Tuesday, September 08, 2015
      by Brian Cathcart, CPA, MS
Larimer SBDC Consultant
The Financial Lab

You are probably really good at providing the products and/or services of your business. But you might not feel so competent or confident about the accounting and financial analysis part of your business. Maybe you need to change your mindset regarding your financial reporting as something to get excited about. 

Don’t you get excited about things that make you money?  Financial reporting and analysis makes you money!

10 Signs You Need Better a Better Understanding of Your Business Finances
  1. You don’t know the role of accounting or what accounting means. 
  2. You are not using financial information regularly to make better business decisions.
  3. You don’t know how to calculate your break even or how to calculate sales necessary to achieve a desired level income.
  4. You don’t know what accounting infrastructure means.
  5. You don’t know what accrual based accounting means.
  6. You don’t understand why the balance sheet is the most important financial statement.
  7. You don’t understand why it is necessary or how to perform monthly reconciliations and close the books.
  8. You have a large accounting role without adequate training and education.
  9. You are a business owner or manager that would like to freshen up on all this accounting stuff.
  10. You are not excited about monthly financial analysis.
Do any of those strike a chord with you? The good news is the Larimer SBDC is here to help! We have free, confidential, individual business consulting with professionals like myself who understand the impact financials have on your business growth, as well as several upcoming training options. 

Check out the following helpful classes that are coming up soon:

Thursday, November 5  1:00 PM - 5:00 PM
QuickBooks: 3 Part Series
Friday, November 6 8:30 AM - 12:00 PM
Basics of Bookkeeping: Know Thy Numbers
Wednesday, November 18 8:30 AM - 12:00 PM  
TAXES - Get Informed and Organized Now!

Need help sooner? Classes don't fit your schedule? 

Click here to request an appointment.