Business Up Front - June 2008

Business Up Front

Fewer Small Business Owners Can Afford to Offer Healthcare

A recent study from SurePayroll’s mid-month survey of small business owners shows that high costs are barring more small business owners from providing health insurance than ever. Here are some key findings from the survey:

• More than half of small businesses surveyed are not offering health insurance benefits.

• The number of small businesses offering health insurance dropped by one-third, versus one year ago.

• Small business owners say that presidential candidates’ stances on healthcare will have a huge impact on the small business owner vote.

• Two out of 10 small business owner respondents indicated that they could recall at least one experience in which a prospective employee turned down an offer for employment at their company because of a lack of healthcare benefits.

Opposition to Overturn Tax-Friendly Imports

The U.S. Customs and Border Protection’s (CBP) proposal to revoke the First Sale Rule (FSR)- a court-sanctioned valuation practice that reduces the cost of consumer goods has drawn the ire of business coalitions, legal associations, and even Senators and Congressional Representatives. Currently, the FSR allows for duty to be assessed on the first sale for export to the U.S., which may be the initial sale from the factory where specific conditions are met. CBP’s proposal would force importers to value goods based upon the last sale prior to import. This will lead to big increases in the amount of import duties, fees and taxes paid by many U.S. importing companies and would likely increase prices on everyday consumer goods such as clothing and shoes.

New “Health Insurance” for Computers

A small business can be startled with Information Technology (IT) expenses that range from zero dollars a month to thousands of unbudgeted dollars when there are unexpected computer problems. The new trend is paying up front for the security of knowing your computer will not stumble when you need it. Many computer consulting firms nationwide are now offering what the industry calls “Managed Services,” a sort of health insurance for small business computer needs. Technology consulting firms handle all regular maintenance and take care of computer problems, allowing businesses to pay a predictable monthly bill to keep computers healthy. Small and medium sized businesses find it more cost effective to pay IT repair companies to keep their computers working, rather than pay when they break down. This allows companies to focus on other important aspects of their business, instead of wasting valuable time on computer issues.