Moneylines: News Briefs for Businesses

IRS launches attack on misclassified independent contractors

In February 2010, the IRS began a three-year program to look for independent contractors who should be considered bona fide employees by the companies for which they’re working. What’s more, the General Accounting Office indicates that most of the IRS’s attention will be focused on small businesses and the self-employed. If your company uses independent contractors to handle short-term projects, be sure you’re carefully documenting how you compensate them and following all of the prescribed IRS rules.

Congressional panel finds trouble with TARP

One of the stated purposes of the Troubled Asset Relief Program (TARP) was to help small businesses gain freer access to credit. But the Congressional Oversight Panel reported that, despite the federal government’s infusion of cash to big banks, those lenders didn’t loosen lending requirements for smaller companies. The number of Small Business Administration loans did return to respectable levels, with $7.5 billion doled out to qualifying companies. So, clearly, when seeking out additional financing, small to midsize businesses should look into options beyond the “big box” bank on the corner.

Small-business owners hopeful for better times ahead

The Wells Fargo/Gallup Small Business Index surveys small-business owners on their perceptions of the current and future financial situation. In a study concluded April 16, 2010, the index showed a five-point improvement from the previous survey (undertaken in January 2010) in the optimism of these company executives. Improved consumer and business spending appeared to be prime factors in the mood upswing. Do you still feel confident in your company’s ability to succeed in today’s fragile economy? If not, look for ways to continue being competitive until there’s a more sustained turnaround.

If you have any questions, please contact Feeley & Driscoll's Boston Accounting team, Email us or call 1 (888) 875-9770.

related links