The Days of Not Collecting Internet Sales Tax Could Be Ending |  |
- The Days of Not Collecting Internet Sales Tax Could Be Ending
- The Importance of Employee Recognition Programs
- Are You Getting Gold Medal Help?
- How To Merge Your Google+ Local and Business Pages
- Ebay Introduces Same-Day Delivery
| The Days of Not Collecting Internet Sales Tax Could Be Ending Posted: 08 Aug 2012 01:00 PM PDT One of the many benefits of buying online is that often the seller does not collect sales tax on the transaction (unless the seller does business in the consumer’s state). In essence, it’s as if the cost of buying something is lower when no sales tax is collected, especially on big ticket items. But some people — state tax authorities and brick-and-mortar retailers to name a few — see "no Internet tax" as just a loophole that consumers take advantage of because no one has stopped them yet. They also see it as something that gives some sellers what they consider an unfair marketplace advantage over other in-state sellers that are required to collect sales tax. Brick-and-mortar retailers have complained loudly, pointing to eCommerce behemoth Amazon.com as the prime example of what they consider having an unfair advantage. Add to that the fact that lawmakers in states keep looking for more sources of tax revenue — and what you have is a perfect storm around this issue of collecting sales tax on Internet purchases. To help fill their tax coffers, politicians want to require all online retailers to start collect sales taxes from the states where their customers are located.
Background Currently, online retailers collect sales tax only for states where they have a physical presence or some other “nexus” to the state. This is due to Federal court law exempting companies from having to comply with a hodgepodge of 50 different state tax laws and thousands of local tax laws, when they are selling in interstate commerce. To have to comply with thousands of tax requirements, it is said, would be unduly burdensome on retailers and have a chilling effect on interstate commerce. It would put Internet retailers at a disadvantage compared to their in-state counterparts, which have to collect taxes only for the state where the transaction took place. This debate has been bubbling for several years. At first the battle was waged at the state level, in the form of state lawmakers passing legislation to require online sellers to remit sales tax if they had website affiliates located in their states. This often backfired. It resulted in companies ending their affiliate relationships to avoid having to collect tax in such states. Often the affiliates were small businesses and entrepreneurs who ended up as carnage in the crossfire. Enter Washington, and the Marketplace Fairness Act Recently, though, the Internet tax issue has bubbled up in a different place, this time at the Federal level in Washington. The proposed Marketplace Fairness Act, which is currently making its way through Congress, proposes to change things. In fact, it appears that Amazon is behind the lobbying effort for this Act. Why? Because Amazon is building warehouses in multiple states and would have to pay tax anyway. So some believe they want to put smaller competitors at a further disadvantage. If the Act were to pass, retailers could be required to collect taxes for states even if they have no physical presence there and receive no services from that state. Supporters of the measure say that the Marketplace Fairness Act will simplify tax law and make collection of sales taxes easier. According to a website set up to spread the word about the Act, passage would simply allow states to enforce their existing tax laws that actually require the consumer to pay sales taxes on all purchases (rather than the seller collecting and remitting sales tax). Of course, few consumers actually report Internet transactions and pay the tax to their states. Proponents also claim the Act would ensure minimal burden and actually make it easier for multi-state retailers to collect and remit sales tax due. They point to an online service, called TaxCloud.net, that is free for merchants and — they claim — will simplify the tax collection and reporting process across all 50 states. Small Business Exemption? According to the Act’s website, there is an exemption for small businesses built in:
However, it remains to be seen whether the small-business exemption would be retained in final passage of any act. Remember, Congress is not bound by what’s written on a website. Also, Congress needs to gather facts about whether $500,000 is the proper level of exemption, or whether it should be higher (or lower). On the surface it sounds like a big number, but as eCommerce goes, it’s not. Opponents Say … Those against the Act note that it won’t stop competition from Internet retailers. Paying sales tax is just one of a long list of advantages of buying online. Other advantages are wider selection, convenience without having to fight traffic along with fast delivery to your door, and lower prices that come from the unmatched scale of giant retailers like Amazon. Further, opponents say it is not about simplifying taxes. In reality, it adds complexity, because paying tax in 50 states is not just about 50 different laws, but there are actually 9600 taxing jurisdictions at the state and local level. Senator DeMint’s office published a rundown about flaws in the Marketplace Fairness Act. The Marketplace Fairness Act is currently in the Senate. As usual these days, you can expect some to cloak themselves in the mantle of “helping small businesses.” However, keep this in mind: small businesses do not have one single interest in this. The interests of small businesses vary widely:
What can you do? Be heard. Contact your Senators to let them know how this issue will impact YOUR business, so that they get all the facts. Online Taxes Photo via Shutterstock From Small Business Trends |
| The Importance of Employee Recognition Programs Posted: 08 Aug 2012 11:00 AM PDT What's the mood in your small business lately? How does it compare to the results of the latest Globoforce Workforce Mood Tracker?
This six-month survey of U.S. employees' satisfaction levels had some good—and bad—news for small business owners. First, the good news: U.S. workers are feeling more satisfied than they did six months ago. Half of employees report having been recognized for their on-the-job efforts in the past three months, up from 44 percent in Fall 2011 when the last survey was conducted. And more than 80 percent say receiving recognition in the workplace makes them more satisfied with their jobs. Additionally, more than half believe their employers are doing a good job offering adequate recognition for work well done. Now, the bad news: Even though many employees are happier with their jobs, things could be better for the 55 percent of employees who say they're ready to leave their current jobs for a company that would better recognize their efforts. Not convinced that recognizing your employees' efforts is directly related to their satisfaction? Check out this data:
If you haven't implemented some type of employee recognition program, now is the time. For a small business, recognition is easy. For one thing, you're probably out walking around and interacting with your team already (at least, I hope so). Be sure to provide ongoing recognition of their efforts by acknowledging them, thanking them, and calling them out in front of the rest of the team. Recognizing people's efforts publicly is important—don’t just do it behind closed doors. Of course, another often-appreciated way to recognize your people is with a written note. I know many workers who have treasured little mementos like this for years. In today's instant-communication world, taking the time to write a note means a lot. (That doesn't mean you can't send a quick email to thank workers for their efforts, of course.) Finally, consider recognition in a more tangible way, such as a gift card, cash or a paid day or afternoon off. How do you recognize your employees? How has it helped you retain key people? Employee Recognition Photo via Shutterstock From Small Business Trends |
| Are You Getting Gold Medal Help? Posted: 08 Aug 2012 08:00 AM PDT Even if you're not normally a fan of sports like gymnastics or water polo it's hard not to be a fan of the Olympics. There's something about watching the best in the world that gives watching those sports a whole different perspective. I may not understand all the nuances of those sports, but I understand the desire to be the best.
I clearly recall one of my earliest job interviews sitting across the desk of the big boss of one of the best ad agencies in Chicago. "Why should I hire you?" he asked bluntly. "Because I'm determined to be the best" I quickly replied. I got the job. My desire to be the best continued when I moved to New York three years later. Like an aspiring Olympian I knew that to be the best I had to compete with the best. New York was definitely more competitive than Chicago and on more than one occasion, I felt like giving up. Yet, I stuck with it. After losing my job I began freelancing, got some good projects and eventually started my own agency. That led to some great work for some great clients which eventually led to winning several gold medals in the award shows. I'd finally won my gold. The qualities that it takes to be best in the Olympics — dedication, talent, training, passion — are the same qualities that it takes to be the best at anything. And, to be successful in today's competitive business environment, every business owner must seek out and get the help of those people – those who are truly the best at what they do. Steve Jobs realized that 37 years ago while starting Apple. Anita Campbell, Founder of Small Business Trends, is someone who realizes it now. When Anita and I spoke she told me that, while many business owners claim they can't afford the best help or just can't afford it "at the moment," they won't succeed if they don't change that tune. As Steve Jobs did, Anita says those business need to view high-powered help as a wise, bigger-picture investment in their business. Another person who understands that is Ryan Blair. Ryan is a former gang member who founded his first company at 21 and now owns a company, ViSalus, valued at over $600 million. When asked about his most valuable business lesson, he answered:
Ryan goes on to say that he did this (as Jobs did) even when he was in start-up mode, and even when he had to pay some top talents more than he paid himself. So, as you think about your own business situation and how you might make it more successful, maybe it's time to ask yourself a simple question:
From Small Business Trends |
| How To Merge Your Google+ Local and Business Pages Posted: 08 Aug 2012 05:00 AM PDT Earlier this summer we introduced you to Google+ Local Pages, a new way for users to share and discover local businesses using Google's social network. These new profile pages were created to replace existing Google Place Pages and added a host of new features by integrating directly into Google+.
However, many business owners also had a Google+ Business page. With no way to merge them, it meant they now had two different Google+ profiles to monitor and update. When your day is busy enough, adding another mouth to feed doesn't always feel like a welcomed change. If often feels like a headache. Mike Blumenthal points us to the announcement that the process for integrating your Google+ Local page with the social Google+ Business page is officially live. Now business owners can take advantage of all the available features while creating a unified presence. From Googler Jade W: For those of you that have created local Google+ pages (with social features) — good news! Today, you can become the verified business owner for that local Google+ page. In essence, this will combine the page you created in Google+ with the page in Google+ Local (formerly Places listing). Your business' presence across Google Search, Google Maps, and Google+ will be unified. You'll be able to manage this page from Google+ Pages admin. Check out the Meatball Shop for an example of a combined page, with both social features and reviews. As Jade explains, once merged, small business owners will have one place (and one dashboard) to manage their verified brand presence. To merge your pages, simply click the Verify Now button on the right side of your Google+ Local page. It's that simple. Sort of. A few things to know about the merge:
So, assuming you set up your Google+ Business page properly and you also have a Local page, the option to merge and verify is now available. If you didn't set it up that way, you may want to wait unless the next stages of Google's rollout are available. Hopefully it won't be too long. And hopefully Google will find a way to make all of this seem less complicated for SMBs in the future. Merge Photo via Shutterstock From Small Business Trends |
| Ebay Introduces Same-Day Delivery Posted: 08 Aug 2012 02:30 AM PDT Following moves by several other online companies including Amazon, Ebay has announced its own experimentation with same-day delivery called Ebay Now. The move toward instant gratification and numerous other e-commerce trends will have many implications for online companies large and small in the near future. A New ApproachFor your eyes only. Selected customers in the San Francisco area have been invited to participate in the new Ebay Now program offering same-day delivery of items from participating stores including Macy’s, Toys R’Us, Target, and Best Buy. The service has several conditions including a minimum order requirement and added shipping fee, but may be the shape of things to come. TechCrunch Reinventing retail. Ebay’s new service is just the latest in a surprise comeback for the online retail giant. Surprisingly, Ebay’s turnaround is not coming from its traditional auction or retail businesses but from its very popular mobile retailing app and its PayPal division, which helps small businesses beyond Ebay receive payments from customers easily. The New York Times Shopping with Your SmartphoneTop of the charts. In fact, Ebay’s mobile shopping app is so popular, Nielsen recently listed it as having the largest unique audience among U.S. smartphone users, even outdistancing Amazon’s mobile shopping app with only fourth ranked Shopkick beating it in terms of the amount of time spent on its app. Nielsen Wire Maintaining mobility. The most important e-commerce lesson coming out of all this may be that mobile commerce will soon dominate. According to one set of figures, m-commerce revenue in the U.S. alone could hit $18 billion by 2014, and $119 billion world wide the year after that. Businesses already selling online should be prepared for the shift. Fox Small Business Center E-commerce evolutionBuilding a better shopping cart. If you’re just at the starting point of creating your online store, things can be a bit overwhelming in terms of the choices you need to make. Perhaps the most important decision is which online shopping cart you will use for your business. Instead of reinventing the wheel, take a look at these six easy suggestions perfect for small business. CIO Customize our e-commerce solution. Or depending upon your needs, a new breed of e-commerce store providers may take many of these decisions completely out of your hands by creating basic stores and allowing you to customize the merchandise and other specifics to your needs. One example is Kitsy Lane, an e-commerce platform that allows small fashion businesses to customize their own online boutiques. Direct Marketing News Sales Tax ScenariosEquity acts may be unfair. But another cloud is looming for small business owners interested in moving into the e-commerce space. Two bills already discussed in Congress could force small e-commerce companies to collect sales tax even from customers living in a different state. Critics say the bills as written could create an unfair burden for small e-commerce businesses. Forbes From Small Business Trends |
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