NASE Press Releases

How To Prepare Your Micro-Business For Future Audits

koberlander — Wed, 17 Feb 2010 19:05:39 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: NASEtweets

NASE National Tax Advisor Says ‘Don’t Panic’

Washington, D.C., February 17, 2010 – Since last November, the Internal Revenue Service (IRS) has undertaken a three-year campaign to review the tax records of nearly 6,000 randomly chosen businesses as part of their National Research Program. The goal is to figure out which areas of the tax code lead to greater noncompliance. The data collected is intended to help the IRS minimize the tax gap, or the amount the agency is owed versus the amount it collects each year.

The National Association for the Self-Employed (NASE) knows that many self-employed business owners meet their tax obligations fully, so the audit process need not be feared. For this particular round of IRS audits, business owners will be asked to provide documentation from three years prior. The focus will be in four areas, including worker classification, fringe benefits, reimbursed expenses and compensation of the business owner.

"The first thing I tell business owners is not to panic if they are facing an audit," says NASE National Tax Advisor, Keith Hall. "As long as you have adequate records and are organized, then it is a relatively simple process. You may even get an additional refund."

Preparing taxes that will sail through the audit process is as easy as following the Three Cs of Tax Preparation:

Careful recordkeeping – Keep good records and notes to support each number on the return. Take the time to do this now, since the information submitted will not likely be reviewed until years later. You do not want to be stuck figuring out what was on line 21 of a past tax return from that long ago.
Check the math – There are many good software packages designed to help you correct easy mistakes and reduce headaches in the long run, such as TurboTax, TaxCut or even the IRS online filing options.
Consider a professional review – Multiple sets of eyes are better than one. It can be worth your time to have a tax professional review the return. Even if he or she does not prepare it from start to finish, a simple review of the work you have done is always helpful. This is especially true if you have a new issue this year, such as your first year of self employment, or hiring a new employee.

The NASE offers numerous tax tools and other tips to help you get through current and future tax season. For help organizing your taxes, visit our Tax Resource Center or ask our TaxTalk CPAs a question.

Micro-Businesses Suffering Under Slowing Economy, Poll Shows

koberlander — Thu, 04 Feb 2010 19:38:03 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander, NASEtweets

Less Than One-Quarter Of Businesses Planning To Hire Workers

Washington, D.C., February 4, 2010 – While Congress and the Obama Administration are hoping that small businesses will continue to be the engine of job creation and spur recovery, the sluggish economy has had a negative impact on the operations and hiring plans of many small businesses. Over sixty percent of the self-employed and micro-business owners indicate that their business has experienced a significant decrease in sales and/or revenue, and almost fifty percent say they have had to utilize their personal savings or retirement savings to address cash flow issues, according to a study undertaken by the National Association for the Self-Employed (NASE).

More than three-quarters of the micro-business owners surveyed (77 percent) are not planning on hiring workers in 2010, with the majority indicating that they were not hiring because they were unable to pay the salary of or offer benefits to an additional worker. Of the twenty-three percent of respondents planning to hire workers this year, only 31 percent were planning to hire full-time workers.

“The current economic slowdown is causing many challenges for micro-businesses,” commented NASE’s Executive Director, Kristie Arslan. “Self-employed business owners are being faced with difficult choices just to stay afloat in this current economic climate.”

When asked about various proposals put forth by Congress and the Administration to spur jobs, an overwhelming majority of respondents felt that none of the current recommendations would encourage them to hire additional workers.

To see the full results of the survey, visit NASE’s Research & Statistics Web page.

Methodology:

Posted on the NASE Web site and promoted via NASE’s newsletters and social media outlets, the survey was available for members and self-employed business owners to take in January. Almost 200 small business owners opted-in to the online survey and respondents were prohibited from taking it more than once.

Kristie Arslan is available for more information about the poll or micro-businesses. Please contact Kristin Oberlander by phone at 202-466-2100 or by email at koberlander@nase.org with additional questions or to schedule an interview.

2009 Tax Changes For The Self-Employed

koberlander — Wed, 13 Jan 2010 14:25:55 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander, NASEtweets

NASE Offers Self-Employed Tips For Getting A Jump On The Filing Season

Washington, D.C., January 13, 2010 – Prior to preparing 2009 tax forms, the self-employed and micro-businesses (fewer than 10 employees) should be aware of a few tax law changes, including adjustments to the standard mileage rate and the self-employment tax.

“January is a great time to get a jump on your 2009 tax return,” said Keith Hall, national tax advisor for the National Association for the Self-Employed (NASE). “The earlier a business owner can get organized, the more likely he or she will have the time to investigate eligibility requirements for additional tax benefits.”

The following tax law changes relate to 2009 returns:

Homebuyer Credits – If you operate a business from an office in your home, you may be eligible for additional tax incentives. Depending on when the home was purchased and how long you lived in a prior residence, you may be eligible for a credit of up to $8,000. The credit is similar to an interest-free loan.
Making Work Pay Tax Credit – Many taxpayers will qualify for a making work pay credit of $800, if married and filing jointly, or $400 for other taxpayers. The credit is equivalent to 6.2 percent of earned income up to the maximum amount.
Standard Mileage Rates Adjusted for 2009 – Business owners using their vehicle for company business can deduct 55 cents per mile driven on their 2009 tax return. The rate has also been set for 2010 at 50 cents per mile.
Contribution Limits for IRAs and Other Retirement Plans - Where an IRA contributor who is not covered by a workplace retirement plan is married to someone who is covered, the deduction is phased out if the couple’s income is between $167,000 and $177,000.
Self-Employment Tax Changes – The tax rate for self-employed business owners remains at 15.3 percent, though the income threshold has increased to $106,800. All net earnings from self-employment of at least $400 are subject to the Medicare part of the tax.
AMT Exemption Increased for 2009 – For tax year 2009, the exemption for a married couple filing a joint return is $70,950, $35,475 for a married person filing separately, and $46,700 for singles and heads of household. Children who earn less than $6,700 are not subject to the AMT.

Worried you will be unable to meet your tax obligation? It is important you still file your return even if you are unable to pay the tax you owe. Contact the IRS at 1-800-829-1040 as soon as possible if you foresee tax payment difficulties. The agency will work with you to discuss your options.

In preparation for the filing deadline, self-employed business owners can turn to Hall and other qualified CPAs for help through NASE’s TaxTalk program here. While there, they can submit a tax question and browse the TaxTalk resource library.

Find out more information about these and other tax law changes for the 2009 tax season at www.IRS.gov.

National Association for the Self-Employed and UnitedHealthcare Forge Alliance To Offer Quality, Cost-Effective Personal Health Insurance Choices in 20 States

mnelson — Wed, 13 Jan 2010 14:15:16 GMT

For Immediate Release:

Contact:

National Association for the Self-Employed
800/649-6273

Golden Rule Insurance Company
800/338-9258

INDIANAPOLIS AND WASHINGTON, D.C. (Jan. 13, 2009) – The National Association for the Self-Employed (NASE) and UnitedHealthcare’s Golden Rule Insurance Company have teamed up to offer new personal health insurance choices to entrepreneurs, micro-business owners and other self-employed businesspeople in 20 states and Washington, D.C.

The new comprehensive health plans for individuals and families are offered in Alabama, Arizona, Arkansas, Florida, Illinois, Indiana, Iowa, Michigan, Mississippi, Missouri, Nebraska, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Wisconsin and Washington, D.C. North Carolina and West Virginia are expected to be added in March of this year.

Health insurance options include co-pay plans similar to traditional employer-sponsored coverage as well as high deductible health plans that work in tandem with health savings accounts (HSAs). Golden Rule pioneered the HSA concept more than 15 years ago. Today, nearly one-third of Golden Rule’s current customers are covered by HSA plans because of the premium savings, tax advantages and control over health care spending these accounts offer.

NASE members choosing one of the health plans also will have access to UnitedHealthcare’s extensive network of more than 600,000 physicians and health care professionals and 5,000 hospitals. Network discounts can result in additional savings to consumers, even before they meet their annual deductibles.

Established in 1981, the NASE is the largest nonprofit, nonpartisan association in the United States that provides day-to-day support, benefits and consolidated buying power for the self-employed and micro-business owners.

“The NASE has a long history of advocating for lower costs, increased access and parity for the self-employed when it comes to health coverage,” said Robert Hughes, NASE president. “But our members and all micro-business owners need options today that provide both choice and meaningful coverage. The new NASE/Golden Rule plans offer just that.”

According to the U.S. Census, more than 10 million entrepreneurs and micro-business owners with fewer than 10 employees reside in the 20 states and District of Columbia included in today’s announcement.

”We are pleased to work with NASE to make quality health insurance coverage available for the large number of self-employed men and women who are dealing with rising health care costs in a difficult economy,” said Richard A. Collins, Golden Rule CEO and president of UnitedHealthcare’s individual line of business. “NASE members will find a choice of quality health insurance plans as well as a wide range of deductibles, enhancements and optional benefits so coverage can be tailored to meet each family’s unique health care and budget needs.”

For more information on the new health plans, consumers can call Golden Rule at 800-338-9258 and speak to a licensed product advisor for their state, call NASE at 800-649-6273 or visit www.NASE.org.

About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association’s Web site at www.NASE.org.

About UnitedHealthcare
UnitedHealthcare (www.unitedhealthcare.com) provides a full spectrum of consumer-oriented health benefits plans and services to individuals, public sector employers and businesses of all sizes, including more than half of the Fortune 100 companies. The company organizes access to quality, affordable health care services on behalf of approximately 25 million individual consumers, contracting directly with more than 600,000 physicians and care professionals and 5,000 hospitals to offer them broad, convenient access to services nationwide. UnitedHealthcare is one the businesses of UnitedHealth Group (NYSE: UNH), a diversified Fortune 50 health and well-being company.

‘Schedule C’ Tax Book De-Mystifies Tax Filing For Nation’s Growing Ranks Of Entrepreneurs

mnelson — Mon, 11 Jan 2010 20:24:12 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander, NASEtweets

Line-By-Line Guide To The Schedule C And Home Office Deduction Tax Forms

Washington, D.C., January 11, 2010 – Just in time for tax season, the nation’s 22 million micro-business owners have a book to help them successfully navigate Schedule C for reporting 2009 taxes and for mapping their tax strategies for the year ahead. Authored by two of the nation’s leading self-employment and tax experts, Schedule C: from A to Z de-mystifies federal tax codes and guidelines that specifically apply to sole proprietors to help filers minimize their tax liability and avoid filing mistakes that can trigger an audit by the IRS.

“As the backbone of the nation’s economy, it’s critical that the self-employed receive every deduction they are entitled to as the basis for reinvesting in their businesses, especially in today’s challenging environment,” says author Robert Hughes. “Through this book, owners can easily become more educated and informed about Schedule C - a key element of business success.”

Using a simple-to-follow tutorial approach, the book takes owners step-by-step through each line of the Schedule C form and includes information to educate fliers on IRS rules they many find complex. The book helps entrepreneurs better organize records throughout the year to yield more thorough record-keeping and better, more productive reporting.

In writing Schedule C: from A to Z, Hughes and co-author Keith Hall have drawn heavily from their vast experience in working with the self-employed, as well as more than 20 years as CPAs and micro-business owners. Hughes is president of the National Association for the Self-Employed (NASE) and Hall is Chief Operating Officer. Both have worked extensively with small-business owners and have witnessed the effects of various laws and regulations first-hand.

One of the keys to successful filing is knowing how to properly categorize expenses, since mistakes in this area can easily trigger an audit by the IRS, and tax rules on itemization are not always intuitive. The book flags reporting areas that often are misinterpreted by filers and offers tips to help identify all feasible and legal deductions.

Practical Tips for Avoiding Problems, Confusion
For each line and category of the Schedule C form, Hughes and Hall explain IRS interpretation, along with a checklist of what can and cannot be reported under each heading. Common misconceptions and pitfalls to avoid also are featured for each line. For example:

The book advises close scrutiny of categories that on the surface may sound like catch-all reporting sections, such as line 18 – “Office Expense.” Despite wording that suggests otherwise, this category is not intended for the reporting of expenses pertaining to office supplies, furniture or rent, which are to be reported elsewhere on Schedule C. Instead, this category is for reporting a litany of miscellaneous items, from janitorial services and bottled water to maintenance service for plants. Expenses related to telephone answering services are to be reported here, but not those related to voice mail service (which are reported with telephone expenses under “Other Expenses”). Publications for a waiting room go under line 18, “Office Expense,” but if publications are for use by employees, those items must be reported separately under “Other Expenses.”
Another section for common filing errors is one of the most frequently used by sole proprietors – “Travel, Meals and Entertainment” (line 24). The authors note that entrepreneurs can deduct 100 percent of travel expenses under “Travel” (line 24a), but expenses must meet all of four specific requirements, including the requirement of being away from home long enough to require rest, which basically means an overnight stay. Although filers report 100 percent of their expenses for meals and entertainment on line 24b, the actual deduction they can take for these costs is limited, so calculation is required to determine the amount that can be deducted. The book walks readers through how to do this math.
Schedule C is loaded with categories and terms for which the IRS has very distinct meaning, the book notes. For example, in IRS nomenclature, “Repairs and Maintenance” (line 21) are expenses that keep property in ordinary and efficient operating condition. On the other hand, “Improvements” add to the value of the property or prolong its useful life and are considered capital expenditures and added to the cost basis of the property. These expenses are reported on line 13, “Depreciation and Section 179 Expense Deduction.”

As an added bonus, the book also includes a line-by-line breakdown of Form 8829, commonly known as the home office deduction. Sixty percent of the NASE’s micro-business membership work from a home office, yet many fear the home office deduction as an audit trigger.

“The self-employed and owners of micro-businesses often don’t have the resources to hire staff or outside experts to help them figure out complex and confusing tax laws and regulations,” says Hall. “This guide is presented as an easy-to-digest tool that will help owners better understand tax rules and minimize their tax liability.”

For more information about Schedule C: from A to Z, visit www.NASE.org or call 800-649-6273. Order Schedule C: from A to Z on Amazon.com.

Grant Program Awards Over $95,000 to NASE Members In 2009

mnelson — Wed, 06 Jan 2010 15:25:15 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

20 Micro-Business Owners Receive Grants

Washington, D.C., January 6, 2010 – The National Association for the Self-Employed (NASE) awarded $95,243 in business grants to its members in 2009. Twenty NASE Members, ranging from a gymnastics center to an environmental consulting firm, received a grant from the association.

With the Business Development Grant program, NASE Members can apply for up to $5,000 for a specific business need such as the purchase of new equipment or software, or the funding of advertising, marketing materials and training. Since the program began in 2006, the association has awarded over $400,000 to member businesses.

The NASE Business Development Grant Program offers access to capital for micro-business owners who have a specific business need – but lack the finances to carry out that goal. The program was designed after an online NASE Member poll found that a majority of micro-business owners (57 percent) initially fund their businesses using personal savings, and many (40 percent) continue to use personal savings for ongoing financing.

“These grants are our way of providing a little stimulus to our micro-business members,” said Robert Hughes, president of the NASE. “They’re staying positive and staying focused. They’re exhibiting the best of the entrepreneurial spirit. And we’re pleased that the NASE grants can contribute even a small part to their ongoing success.”

The following NASE Members received grants in 2009:

Gwen and James Arrigon of Beckett Run Inc. in Hamilton, Ohio
Jonathan Beck of JBS Multimedia in Huntington Beach, Calif.
Theresa Cassiday of Catena Creations, LLC in Bellevue, Neb.
Aaron Degler of Degler Design, Inc. in Saint Charles, Ill.
Elizabeth and Scott Dupre of The Pagoda Vent Company in Kittery Point, Maine
Robby Gerken of Erie Recycling Services, LLC in Antwerp, Ohio
Lily Hay of Aglow Marketing, LLC in Indianapolis, Ind.
Zane Homesley of Goshawk Environmental Consulting, Inc. in Austin, Texas
Steve Huffman of Steve Huffman Training Stables in Nampa, Idaho
Carl Leonard of Fogle's Asphalt Sealing in Walkersville, Md.
Scott and Karen Logan of The Blue Mermaid Island Grill in Portsmouth, N. H.
Tyler Madsen of Born Again Homes in Ellis, Idaho
Gaylene Mann of Curves of Dallas in Dallas, Ore.
Mary Miles of MG Accounting and Tax Service, LLC in Alpharetta, Ga.
Janna Piper of Janna Piper Housesitting in Portland, Ore.
Lesley Rackowski of Pillowcasegram & Other Things LLC in Westfield, N.Y.
Nancy Ritchie of Cranial Tap, Inc. in Sterling, Va.
Douglas Springer of Springers Gymnastics Center, LLC in Ellsworth, Maine
Susan Steele of Artistic Touch Studio in Gilbert, S.C.
Elizabeth Stultz of Elizabeth Stultz Photography in Windham, Maine

Learn about past grant recipients from 2006, 2007 and 2008.

To learn more about the NASE Business Development Grant program, click here. Benefit availability dependent upon membership level.

Micro-Business Owners Year In Review

koberlander — Thu, 31 Dec 2009 16:00:00 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

NASE, Micro-Businesses Met With Pres. Obama, Fought For Health Reform

Washington, D.C., December 31, 2009 – The self-employed and micro-business owners continued to plan for business, educational and personal success in 2009. They also became crusaders for health reform and fair tax treatment. During that time, the National Association for the Self-Employed (NASE) continued to be a resource for these businesses as they navigated the stormy waters of the nation’s economy with advice on survival and even success.

Created to provide a boost to deserving micro-businesses, the NASE’s Business Development Grant Program continued to flourish and even presented a $30,000 Achievement Award to one member in recognition of the excellent small-business practices she employed to catapult her start-up venture into a successful business. The NASE’s grant program has awarded over $350,000 in grants since 2006.

The NASE also celebrated two decades of helping members send their dependents to college through the NASE Scholarship Program. In 2009, the program helped 18 families send their students to college, in addition to the recipient of the substantial NASE Future Entrepreneur Scholarship. Since the program was started in 1989 as a way to invest in the future of entrepreneurship, over $1.8 million has been awarded to the dependents of NASE Members.

The NASE is happy to help assist micro-business owners in other ways, as well. The NASE has been working with the Obama Administration to make sure that the needs of small-business owners are not forgotten. President Barack Obama discussed with the NASE how the Administration’s economic recovery efforts would benefit entrepreneurs, and at a meeting with the President the NASE made sure to mention that micro-businesses are still facing difficulties getting access to credit and financing while being crippled by health costs. A few NASE Members had the opportunity to visit the White House to listen to President Obama discuss health reform and why it is important to small business, and NASE Members from Allentown, Pa., were invited by the Administration to attend the start of the White House To Main Street tour with President Obama at Lehigh Carbon Community College.

Members of Congress remain in contact with the NASE for information on helping micro-business. In 2009, the NASE spoke up on a number of issues, including the likely impact of various health reform proposals on small-business owners, the need for a reduction in the complexity and amount of tax paperwork, and that certain tax incentives should not be allowed to expire.

Amid the economic stimulus and health care reform bills, some significant pieces of legislation for the self-employed were also introduced in the 111th Congress. The Home Office Deduction Simplification Act, a bill that would make it easier for home businesses to deduct office expenses by offering a $1,500 standard deduction to eligible taxpayers, was introduced in both the House and the Senate. The NASE supported the introduction of the Equity for Our Nation’s Self-Employed Act, legislation in the House that would eliminate an inequity in the tax code that inhibits the self-employed from receiving a full

deduction for health insurance costs, and the introduction of the Tax Equity for the Self-Employed amendment, legislation that would allow sole proprietors to deduct as a business expense 50 percent of their health premium costs, to the health care bill in the Senate.

Following the success of the NASE’s Tax Seminar program in 2007 and 2008, in March the NASE’s National Tax Advisor Keith Hall traveled to seven cities across the country to share micro-business tax strategies and to bring together fellow NASE Members.

The NASE worked to bring more benefits to members with the introduction of two new membership packages as well as the unveiling of the new Tax Resource Center. Formerly known as Tax Central, the Tax Resource Center is a Web page where NASE Members and other small- business owners have access to calculators, planning tools, tax advice from Tax Talk and more to help them with filing tax returns.

Visit the NASE on the Web (www.NASE.org) for more micro-business programs and news, including information on business grants and scholarships. For a list of legislative priorities, click on “Advocacy.”

NASE Members Receive $40,000 In Business Development Grants

mnelson — Wed, 30 Dec 2009 15:54:00 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Program Continues To Help Members Grow, Succeed

Washington, D.C., December 30, 2009 – Micro-business owners received a financial boost to their business in the fourth quarter, thanks to the National Association for the Self-Employed’s Business Development Grant Program. These NASE Members, with businesses as varied as an environmental consulting firm and an accounting firm, were awarded a total of $41,500 for their businesses.

With the Business Development Grant program, NASE Members can apply for up to $5,000 for a specific business need such as the purchase of new equipment or software, or the funding of advertising, marketing materials and training. Since the program began in 2006, the association has awarded over $400,000 to member businesses.

The NASE Business Development Grant Program offers access to capital for micro-business owners who have a specific business need – but lack the finances to carry out that goal. The program was designed after an online NASE Member poll found that a majority of micro-business owners (57 percent) initially fund their businesses using personal savings, and many (40 percent) continue to use personal savings for ongoing financing.

“Over the past two years, we’ve seen how just a small amount of capital can get a business off the ground,” said NASE President Robert Hughes. “When a retailer can suddenly sell products online or a contractor can buy a piece of equipment instead of renting it—those small changes to the way a business operates can generate huge profits.”

The following NASE Members received grants during the fourth quarter of 2009:

Gwen and James Arrigon of Beckett Run Inc. in Hamilton, Ohio
Aaron Degler of Degler Design, Inc. in Saint Charles, Ill.
Zane Homesley of Goshawk Environmental Consulting, Inc. in Austin, Texas
Carl Leonard of Fogles Asphalt Sealing in Walkersville, Md.
Tyler Madsen of Born Again Homes in Ellis, Idaho
Gaylene Mann of Curves of Dallas in Dallas, Ore.
Mary Miles of MG Accounting and Tax Service, LLC in Alpharetta, Ga.
Lesley Rackowski of Pillowcasegram & Other Things LLC in Westfield, N.Y.
Nancy Ritchie of Cranial Tap, Inc. in Sterling, Va.

To learn more about the NASE Business Development Grant program, click here. Benefit availability dependent upon membership level.

NASE Opposes Senate Health Reform Bill

mnelson — Tue, 22 Dec 2009 20:45:32 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Only 22% of All Small Businesses Will Have Access to Immediate Assistance

Washington, D.C., December 22, 2009 – Health reform legislation continues to inch toward passage as the Senate works to get home for the holidays. Unfortunately, they have missed one key segment of the population in the crafting of this bill – the self-employed.

The National Association for the Self-Employed (NASE) believes that the Senate’s health reform bill is an improvement upon the House’s efforts. However, in light of the continued inability to tackle the key issue of affordability for the self-employed, the NASE is opposing the Patient Protection and Affordable Care Act (H.R. 3590).

The self-employed are seventy-eight percent of all small businesses in the United States. For the past ten years self-employed businesses have grown faster than all other segments of the business population, contributing close to $1 trillion dollars to our economy in 2007. Yet, one-third of self-employed individuals are currently uninsured, with cost being the primary reason for their lack of insurance. Furthermore, seventy-one percent of self-employed individuals have gone uninsured at some point in their lives. Those with coverage have experienced double-digit premium increases every year, making it difficult for them to retain insurance.

The NASE continuously worked with Senate Members to push for improvements to H.R. 3590 such as the Tax Equity for the Self-Employed Amendment (S. Amdt. #3013) which would have provided the self-employed with a 50 percent business deduction for their health care costs; an important first step in making the tax treatment of health costs fair for all businesses. However, Senate leadership chose to forgo this key amendment and instead focused budget resources elsewhere, such as on the expansion of premium assistance for bigger businesses contributing at least 50% to the cost of group health coverage for their employees.

“The primary goal of reform should not solely be to increase the ranks of the insured at any cost, but rather to create a stable health insurance market that allows for affordable coverage options to ensure that the chief contributors to our economy – the self-employed – are not at risk of facing higher health expenses,” commented Kristie Arslan, executive director of NASE’s legislative offices. “As it stands, the self-employed will receive no tangible, immediate bottom line savings on health costs from the Senate bill.”

Under H.R. 3590, our nation’s smallest businesses must wait until 2014 to receive any financial aid to afford health coverage. That’s nearly four years, or 48 monthly premium payments until receiving a little relief. Additionally, only those self‐employed business owners with an individual household income below $43,320 or a household income below $88,200 for a family of four will qualify, leaving a large portion of self-employed Americans mandated to purchase health coverage without any assistance.

Read the NASE’s statement on the Patient Protection and Affordable Care Act in its entirety here.

Health Reform Update: Senate Debates Cost-Saver For Self-Employed

koberlander — Tue, 15 Dec 2009 17:04:19 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Senate Considers Limited Tax Relief On Health Care Expenses

Washington, D.C., December 15, 2009 – The health reform debate continues among Members of the Senate, as lawmakers work to pass reform legislation before the end of 2009. Unfortunately, three-quarters of the nation’s small business population –the self-employed – receive minimal cost savings in the current proposal. The National Association for the Self-Employed (NASE) also notes that, if the bill were to be signed into law, the earliest the self-employed business owners would see any possible relief would be in 2014.

However, Democratic Senators Mary Landrieu (La.), Jeanne Shaheen (N.H.), Debbie Stabenow (MI), Evan Bayh (Ind.) and Blanche Lincoln (Ark.) have introduced Tax Equity for the Self-Employed amendment (S. Amdt # 3013), which would allow sole proprietors to deduct as a business expense 50% of their health premium costs. This amendment is under consideration by the Senate for inclusion in the health reform package.

Currently, a self-employed business owner (sole-proprietor) paying $7,000 annually for health insurance is also paying $1,071 in extra self-employment taxes because they are unable to deduct their health costs as a business expense on their Schedule C tax form. The NASE has worked for years to convince lawmakers to address this inequity, making the tax treatment of health costs fair for the self-employed and providing immediate bottom-line savings.

“We’re pleased to see the needs of the self-employed being considered and voiced by leaders in the Senate during the debate,” said Kristie Arslan, executive director of the NASE. “Though we firmly believe that the self-employed should have the same tax benefits as large businesses and be allowed to fully deduct their health costs as a business expense, this amendment is a step in the right direction.”

View a list of the small business amendments, including S. Amdt # 3013, that are under consideration for inclusion in the Senate Reform bill.

Watch Sens. Landrieu, Lincoln, Stabenow discuss the proposed health care amendments on You Tube.

NASE National Tax Advisor To Congress: Support Extending Tax Incentives For Small Biz

koberlander — Fri, 11 Dec 2009 15:43:59 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

No Need To Impede Small Business Job Creation In This Economy, He Says

Washington, D.C., December 11, 2009 – When appearing before Congress, NASE National Tax Advisor and Certified Public Accountant, Keith Hall, has one piece of advice for lawmakers – in order to continue growing and creating jobs, small businesses need to be able to count on a number of tax incentives. Mr. Hall was invited to disclose the needs of the self-employed business owner at a recent roundtable on expiring tax provisions, hosted by the Senate Committee on Small Business & Entrepreneurship.

The National Association for the Self-Employed (NASE) is strongly in support of extending tax incentives that are currently scheduled to expire. In particular, the NASE supports extending the provisions for Alternative Minimum Tax increased exemption amounts, bonus depreciation options, section 179 limits, the sales tax deduction option, the first time home buyer’s credit, and 15 year cost recovery for certain qualified leasehold improvements and five year recovery for farming business machinery and equipment.

“Many of those provisions were enacted over time by Congress to stimulate business and job growth and have been successful particularly for small businesses across the country,” commented Mr. Hall. “Congress certainly could not have anticipated the economic crisis that we all are currently facing, however, now is not the time to end key tax incentives that have contributed to the creation of new jobs.”

Hall recommended that Senate lawmakers not only approve temporary tax incentives for 2010, but also make them permanent, as temporary tax provisions can make for difficult tax planning for the self-employed. He also suggested that Congress pass legislation that would offer the self-employed the option of a standard home office deduction, as well as the opportunity to write-off their health costs as a business expense.

The Joint Committee on Taxation has provided a list of over 25 major tax incentives that are scheduled to expire in 2009. There are also over 85 temporary tax incentives that have been extended from year to year that are scheduled to expire or “sunset” by the end of next year.

Micro-Businesses Attend Kickoff Of “White House To Main Street” Series

koberlander — Wed, 09 Dec 2009 13:57:25 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

NASE Members Invited To Attend President’s Speech In Allentown

Washington, D.C., December 9, 2009 – Micro-business owners in Allentown, Pennsylvania recently got a visit from President Barack Obama for the opening of the White House To Main Street tour. The Allentown stop was the first in a series of events across the nation focusing on job creation.

“Now, it’s typical that it takes time for job growth to catch up with economic growth. And it’s typical that it takes a little more time to come out of a recession when it comes to hiring. But Americans who’ve been desperately looking for work for months -- some of them maybe for a year or longer -- they can’t wait. And we won’t wait. We need to do everything we can, right now, to get our businesses hiring again so that our friends and our neighbors can go back to work,” said President Obama.

Dale Schaffer of Bethlehem, Pa. is the co-owner of Elysian Fields Specialty Florals. He was part of a group of NASE members that were invited by the Obama Administration to attend the event at Lehigh Carbon Community College in Allentown:

“As a small business owner, I would have liked to learn more about opportunities for grants and small business loans. The bank situation is very discouraging when you rent or lease a property for your business and have very little credit to show when approaching a lending institution for any financial backing. I would love to grow our business and have the opportunity to employ more people, but the current financial stress prohibits that at this time. Our goal is to maintain the current number of employees we have while also looking to the future with hope of growth and expansion,” commented Mr. Schaffer.

The self-employed represent approximately 78% of all small business in the United States and have consistently grown each year despite the ailing economy. The NASE asserts that any effort by the Administration and Congress to increase job creation needs to have a substantial focus on self-employment as a viable career option and the self-employed as job creators in our nation.

According to a November 2008 NASE online poll, 71% of micro-business owners reported that the slow economy was having a moderate to significant impact on their business. Click here for full survey results.

NASE Supports Activities, Goals of Global Entrepreneurship Week

mnelson — Mon, 23 Nov 2009 19:06:55 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Worldwide Event Aims To Encourage Entrepreneurship By Young People

Washington, D.C., November 23, 2009 – Young people in 85 countries had the opportunity to explore their potential as self-starters and innovators this month through Global Entrepreneurship Week. Organizers aimed to inspire young people to embrace innovation, imagination and creativity, and to allow them to join a growing movement to generate new ideas and seek better ways of doing things.

The NASE supports the Kauffman Foundation’s work with Global Entrepreneurship Week in encouraging entrepreneurship and innovation around the world. The NASE believes in the importance of educating and encouraging young people to pursue entrepreneurship.

Global Entrepreneurship Week was co-founded in 2008 by the Ewing Marion Kauffman Foundation, a private nonpartisan foundation that works to harness the power of entrepreneurship and innovation to grow economies and improve human welfare, in the United States and Make Your Mark, a business-led government-backed campaign, in the United Kingdom.

In the United States, participants had the opportunity to compete in a clean technology challenge and an “Apprentice-style” innovation promotion tournament, and mentoring and networking events among many other state and local activities. More than 650 program partners hosted events in all 50 states, and more than 200 colleges and universities also held events celebrating entrepreneurship during the week.

Health Reform: More Of The Same From House Lawmakers

koberlander — Tue, 10 Nov 2009 19:11:42 GMT

Bill Lacks Meaningful And Timely Aid For Small Business Health Costs

Washington, D.C., November 10, 2009 – The House narrowly passed the Affordable Health Care for America Act (H.R. 3962) this weekend and now the Senate will be the new ground zero for health reform debate. The National Association for the Self-Employed (NASE) was dismayed to see that lawmakers have once again failed to include provisions that will make a noticeable difference in the bottom line of the nation’s millions of self-employed business owners.

According to NASE’s June 2008 study, “Health Coverage: A Micro-Business Perspective,” one-third of self-employed individuals are currently uninsured, with cost being the primary reason for their lack of insurance. Furthermore, the study showed a massive drop in employer-sponsored coverage amongst micro-businesses, those businesses with fewer than ten employees. In 2008 only 18.6 percent offered health insurance to their employees, down from 46.2 percent in 2005. The primary reason for dropping group health coverage was again, cost.

“In this difficult economic time, reform should make accessing health coverage easier and more affordable for small business,” said Kristie Arslan, executive director of the NASE’s legislative offices. “It seems the legislation passed by the House will likely make it more difficult, and worse, more costly for our nation's entrepreneurs to obtain health coverage.”

Arslan notes that, while the bill’s small business and individual tax credit provisions sound good on paper, in reality they will not take effect for at least three more years, in 2013. Additionally, the credit can only be applied towards health coverage purchased through the new Exchange or health marketplace the bill creates, forcing many self-employed business owners to choose between keeping the coverage they currently have or dropping that coverage to obtain financial assistance with skyrocketing health costs.

Read Arslan’s entire commentary, titled “House Democrats Eke Out A Victory On Health Reform,” on the NASE Staff Blog.

While the Senate will cull together its own vision of reform, the House version of the legislation gives a preview of what might be in a final reform bill. The NASE will continue its efforts to push for tangible, immediate cost saving measures to be included in a final health reform package. For more information on the NASE’s recommendations, please visit NASE in Action.

Consumer Protection Legislation Clears First Hurdle

mnelson — Fri, 23 Oct 2009 16:13:36 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Consumer Protection Legislation Clears First Hurdle

House Committee Passes Key Component to President Obama’s Financial Regulatory Reform Effort

Washington, D.C., October 22, 2009 -- The Consumer Financial Protection Agency Act of 2009 (H.R. 3126), which includes the creation of a new federal agency central to President Obama’s financial regulatory reform initiative, was approved by the House Financial Services Committee today.

In reaction to the housing crisis and the collapse of our financial markets, the bill creates the Consumer Financial Protection Agency (CFPA) to protect consumers from risky and deceptive practices in the financial marketplace, while also protecting our country from another economic debacle. The CFPA would oversee and regulate consumer financial products such as credit cards and mortgages.

According to NASE’s November 2008 Housing & Economic Survey, 49 percent of the self-employed used various forms of personal financing (mortgage, home equity, credit card, etc.) to start their businesses. Credit card debt accounted for 28 percent of this total debt. Close to 70 percent of survey respondents indicated that they used various forms of debt (mortgage, home equity, credit card, etc.) to obtain additional cash for their business operations, of which 39 percent was credit card debt.

Micro-businesses and the self-employed have been hit particularly hard during this financial crisis. Their reliance on credit cards, lines of credit and home equity loans to help with the daily operating costs of their business has left the self-employed vulnerable to unpleasant industry practices. Furthermore, due to slow sales and a cash flow crunch resulting from the credit freeze and plummeting home values, some micro-business owners have been forced to close their doors.

“During the financial crisis, business definitely declined for our transmission shop. We had used credit cards to pay bills. Our credit card company cancelled these lines of credit; my husband and I each had a card. Once our lease was up we had to sell our business to our landlord at a huge loss,” commented NASE Member Jere Smith, owner of Lancelot Inc. in Liberty, Mo.

The National Association for the Self-Employed supports creating a transparent and fair financial marketplace with increased consumer protections and consumer education. While NASE Members support efforts to improve financial regulatory reform, the micro-business community wants assurances that small business will have a voice in the regulatory process of the new Consumer Financial Protection Agency, as well as existing regulatory agencies. Regulators must be mindful that new rules do not have the unintended consequence of restricting credit further, or making it more costly for micro-businesses to access financing options.

“Our nations’ smallest businesses have seen the value of their home drop, their retirement savings shrink and their access to credit freeze. Furthermore, they have seen their tax dollars go to shore up the same big institutions that created this financial mess. They want assurances that our government regulators won’t be caught sleeping on the job again,” commented Kristie Arslan, executive director of the NASE.