NASE News

NASE 2012 Member Council

NASE — Thursday, 10 May, 2012 14:33:57 EST

For Immediate Release:

Contact:

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

15 Members, Business Owners From Across The Nation Meet With NASE Leadership In Washington, D.C.

Washington, D.C., May 10, 2012 – The National Association for the Self-Employed (NASE) is pleased to announce the 2012 Member Council, which met in Washington, D.C. May 2nd -4th. The council’s purpose is to serve as a sounding board for NASE leadership regarding programs, services and benefits that could help make NASE Membership an even greater value to micro-business owners and the self-employed.

“We have a wonderful group full of diversity, talent and expertise,” said NASE President Kristie L. Arslan. “I am thrilled with the opportunity to work with the member council over the next year to strengthen and grow the association to be a bigger and better partner for our member businesses.”

This year’s council consists of the following NASE Members and business owners:

Charlie Arnold of Lewes, Del.
Mr. Arnold is the president and owner of Arnold Powerwash LLC. Arnold Powerwash is organized in commercial and residential divisions cleaning all types of exterior surfaces, along with fleet washing and dry ice blasting divisions. Arnold is currently serving on Board of Directors for Power Washers of North America as Secretary and Environmental Chairman of the Eastern U.S. Charlie is a bi-vocational Church Planting Pastor and is Pastor of Seaside Church.

Ellen Bruseau of Manassas, Va.
Ms. Bruseau is the owner and operator of Handy Human, LLC. Bruseau is a home improvement contractor, specializing in painting and tiling, but performing all sorts of other ‘handy’ work required to complete and finish home improvement projects, from framing out unfinished rooms to adding mouldings and installing new fixtures.

David Carstens of Lowell, Mich.
Mr. Carstens is the owner and operator of Dadec Enterprises LLC, an online retail store on a free-standing website.

Sydni Craig-Hart of Emeryville, Calif.
Ms. Craig-Hart is the owner of Smart Simple Marketing. Craig-Hart provides marketing, coaching and consulting services to clients.

Jane Donoho of Batavia, Ill.
Ms. Donoho is the owner of JD Marketing, a small-business solutions company. Donoho is an independent contractor/consultant and offers services in areas such as: project management, account management, inbound marketing, market research, sales, seminar/event/meeting planning, and others as requested. In her free time, she volunteers with organizations such as Habitat for Humanity and the Illinois Food Pantry, and tries to play as much golf as she can.

Craig Evans of Provo, Utah
Mr. Evans is the owner of Craig Evans construction company. Evans does handyman and contracting work, specializing in woodworking, tile and paint. He also does financial coaching with Primerica, helping families get out of debt, be properly protected and become financially independent.

Rolf Gjesteby of Cohasset, Mass.
Mr. Gjesteby is a benefits consultant. He has worked with the self-employed and small businesses, helping them with their business and personal needs, since 1988.

Gaylene Kanoyton of Hampton, Va.
Ms. Kanoyton is the President of Gaylene, LLC – Management & Marketing Company. She is active in her community and serves on the Board of several state and local organizations, including as Member of the Executive Board for the Urban League of Hampton Roads and on the Hampton Child Development Center Board. Kanoyton was also appointed by Virginia Governor Tim Kaine to serve on the Council on the Status of Women, with her term ending in 2012.

Mary G. Mora of Winston-Salem, N.C.
Ms. Mora is the Owner and Abundant Talent Connector of MGM Speakers Bureau. Mora connects keynote, motivational, professional speakers, training consultants, and business/life coaches with event and meeting planners, organizations, associations and individuals.

Susan Sarfati of Washington, D.C.
Ms. Sarfati is the CEO of High Performance Strategies, LLC. Susan provides consulting and speaking services focused on growing leaders and organizations that stand tall. Sarfati was the President and CEO of the Greater Washington Society of Association Executives, and the founding President and CEO of The Center for Association Leadership and Executive Vice President of the American Society of Association Executives (ASAE) until September 2008. She was recently named by Women of Wealth magazine as one of the top 99 mentors in the U.S., and was honored by ASAE with their first Lifetime Achievement Award.

Ben Seidel of Columbia, Mo.
Mr. Seidel is the President of Igniting Business. With his background in marketing, technology and website design, Seidel offers many services to clients in the realm of website development solutions, marketing material design and production, as well as technology services.

David Seidel of Columbia, Mo.
Mr. Seidel is President of Seidel Research and Development Company, LLC. He has more than 26 years of experience in the field of engineering and environmental consultation. He also has extensive experience in consulting new industries with environmental regulation compliance and energy efficiency implementation measures, including renewable energy assessments.

Dave Sylvester of Cranberry, Penn.
Mr. Sylvester is the owner of Lucky Cats Marketing. Sylvester works with local and small businesses to create and implement Internet marketing strategies in order to generate better leads and more sales. Prior to starting his own business, he worked as an application developer and database programmer. Sylvester is a musician in his spare time.

Tiffany Washington of Waldorf, Md.
Ms. Washington is the owner of Washington Accounting Services. She was the recipient of the NASE’s Achievement Award in 2009. In addition to providing financial services that reduce risk, cost, and improve quality of financial operational information for businesses, Washington teaches Business Tax & Recordkeeping courses at the College of Southern Maryland.

House Follows Senate And Introduces Small Business Tax Extenders Bill

NASE — Friday, 27 April, 2012 00:00:00 EST

For Immediate Release:

Contact:

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

NASE Calls For Greater Emphasis On Self-Employed Businesses

Washington, D.C., April 19, 2012 – The NASE’s efforts to introduce companion language in the House of Representatives mirroring the Senate introduced Small Business Tax Extenders Bill was met today by Representatives Gerlach (R-Pa.) and Neal (D-Mass.) who introduced the bipartisan House measure.

“We couldn’t be more thrilled to have the esteemed leadership of Representatives Gerlach and Neal on this significant piece of legislation. The National Association for the Self-Employed has long advocated for Congress to extend these invaluable tax deductions, including the very important health insurance deduction extension, as a means to provide direct relief to the self-employed and micro-business communities, who number 22 million,” stated Katie Vlietstra, NASE Director of Government Affairs, “At a time when the Administration and Congress portray themselves as champions for entrepreneurs, we have seen very little legislative action. However, with legislation now introduced in the Senate and House we feel confident that both chambers will move swiftly to address these tax extenders and hand the small business and self-employed community much needed relief and parity.”

The bill includes the following provisions:

Self-Employed Health Insurance Deduction – Whereas sole proprietors used to be the only business entity that could not deduct their health insurance costs as a business expense, the extension of this immensely popular provision would include 2012 and retroactively includes tax year 2011.
Startup Deduction for New Businesses – The self-employed can deduct up to $10,000 of their startup costs on their taxes. If left to expire, the deduction will reduce to $5,000.
Section 179 Increased Expensing – Micro-businesses can expense 100 percent of their equipment in the first year, up to $500,000.
Extension of 5-Year Carryback – The self-employed have the ability to report a loss in income tax for 5 previous years.
AMT Exemption – The Alternate Minimum tax has never been adjusted for inflation, so this extender helps ensure that small-business owners do not get heavily taxed at decades-old levels.

NASE To Congress: Extend Expiring And Expired Small Biz Tax Cuts

NASE — Thursday, 26 April, 2012 11:54:29 EST

For Immediate Release:

Contact:

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

Deductions For Health Insurance And Start-Up Expenses Are On The Chopping Block

Washington, D.C., April 26, 2012 – The nation’s self-employed and micro-businesses have complained about uncertainty in the tax code, which does not allow them to plan for the future. In a recent USA TODAY article, NASE Member Tiffany Washington said that she had to put off hiring a new employee for her tax preparation business because Congress could not make up their minds about extending the payroll tax cut. As a result, Washington was short-staffed during a very busy tax season.

Today, the House Ways and Means Committee is holding a hearing on the exploration of expiring tax cut for small business owners. The NASE took this opportunity to submit a statement for the record regarding the importance of the continuity of these tax benefits.

“While we understand the hearing is limited to tax provisions that expired in 2011 and will expire in 2012, we would be remiss if we did not bring to the attention of the Committee key tax provisions that expired in 2010. Specifically, the ability for the self-employed to deduct their health insurance as a business expense and the start-up deduction for brand new businesses are both particularly important. We believe that if the Committee reviewed and in some cases, retroactively applied these tax credits to the 2011 and current tax years, the self-employed community would reap the rewards in a financially meaningful way,” said NASE President and CEO Kristie Arlsan, in written testimony.

Read the rest of Arslan’s statement to the committee here.

JOBS Act To Be Signed By President Obama

NASE — Thursday, 5 April, 2012 15:30:00 EST

For Immediate Release:

Contact:

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

Washington, D.C., April 5, 2012 – Today, President Obama will sign H.R. 3606, the bipartisan JOBS Act, a package of bills aimed at supporting small business and start-up growth. In a rare bipartisan moment, Senate and House leaders moved relatively quickly to pass the act after President Obama acknowledged his support of the package during his State of the Union speech in January.

Looking forward, the NASE hopes that Congress will work to address additional inequalities that exist for small businesses, including the health insurance deduction which remains our number one legislative priority. Legislation introduced in the Senate extends the deduction for an additional two years and we have been working with our small business partners to find a champion in the House to introduce companion legislation in hopes of spurring congressional action.

“It is evident, that when necessary, the congress can act in a bipartisan manner to pass positive legislation. We hope that in the coming months that Senate and House elected officials will come together to pass legislation that serves as powerful motivators for job growth for the self-employed and micro-business community. This includes the extension of the health insurance deduction which directly results in money being placed back into their pockets and businesses that are generating job growth and economic recovery,” stated NASE Director of Government Affairs Katie Vlietstra.

The NASE had previously reported that the legislation had hit a snag while under debate in the U.S. Senate, which resulted in a change to the crowdfunding component of the package. Two amendments were offered that would require additional oversight by the Securities and Exchange Commission (SEC) and stricter limits on how much capital a business could raise utilizing crowdfunding mechanisms. The Senate adopted the lesser of the two restrictive amendments, which punted the bill back to the House to re-approve and thus avoiding a conference committee on the legislation.

The JOBS Act will become only the 103rd bill signed into law by President Obama since January 1, 2011 and during the 112th Congress.

Last Minute Small Business Tax Tips From NASE National Tax Advisor, CPA

NASE — Monday, 2 April, 2012 11:41:51 EST

For Immediate Release:

Contact:

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

Entrepreneurs Expected To File Over 24 Million Returns In 2012

Washington, D.C., April 2, 2012 – Small-business owners who have put off doing their 2011 tax return so far this year have a couple weeks until Tax Day. The National Association for the Self-Employed (NASE) has one piece of advice – don’t panic.

“As long as you have all of your paperwork gathered in one place before starting and take the time to check your math, you’ll likely have no problem getting your return filed by April 17th,” said Keith Hall, NASE’s National Tax Advisor. “If you don’t think you’ll make it in time, you can get an automatic 6-month extension by filing Form 4868 and pay the tax you think is owed by April 17th.”

Hall offers these last minute tax tips for small-business owners who are starting to sweat:

Check for hidden deductions: If you work out of your home, your office may qualify for a deduction. Do you drive to the post office or a client site? Those miles may add up to a sizable deduction, too.
Retirement Savings: Retirement savings, such as SEP contributions and IRA deposits, are deductible for last year’s tax return up until April 17, 2012. That means you can count money deposited into these accounts, up until the day you file your 2011 tax return. In the case of SEP contributions, those can even be made up until an extended due date, as late as October 15th.
Filing Date: If, despite all your rushing around, you still can't make the April deadline, relax. All tax filers can get an automatic 6-month extension by filing Form 4868 by April 17th, which you can download from the IRS Web site at http://www.irs.gov/. However, an extension of time to file is not an extension to pay. If you do not send the IRS what you think you owe, you'll be stuck with late fees and interest.
Can’t Pay the Tax That You Owe? If you can’t pay the tax that you will owe with your return, don’t let that be a reason not to file by April 17th. There are late filing penalties as well as late payment penalties. So file the return even if you can’t pay. You can even request a payment plan with the IRS by complete IRS Form 9465, Installment Agreement Request.
Proofread the form: Most of the mistakes on tax returns are simple addition and subtraction errors. Check your math. Then, check your math again.
Start thinking about next year: While micro-business owners may be tempted to finish their return and not think about taxes again until next year, now is a great time to reflect on how to reduce your 2012 tax liability. Consider deductions for a home office or employing your children; create a health reimbursement arrangement, which would enable the business to reimburse bona fide employees for all out of pocket medical expenses; and research retirement plans designed specifically for the self-employed, including an IRA, SIMPLE, SEP, Single 401(k), and Keogh plan.

Look for help: Sole proprietors doing their own taxes can find help from a number of sources, including the NASE’s Tax Resource Center, where small-business owners can ask the NASE’s CPAs and tax professionals any question at any time. The IRS also offers a Web site (http://www.irs.gov/) and toll-free help line, 1-800-829-1040, for your tax questions.

Micro-Businesses Still Waiting For Economic Improvement

NASE — Tuesday, 20 March, 2012 13:02:53 EST

For Immediate Release:

Contact:

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

Uncertain Environment Prevented Growth And Hiring, Caused Business Owners To Dip Into Personal Or Retirement Savings

Washington, D.C., March 20, 2012 – The nation’s smallest businesses are still feeling negative effects of the economic downturn, including cash flow issues for business and family, according to a new survey by the National Association for the Self-Employed (NASE). Three-quarters of the self-employed and micro-businesses owners say their company provides the main source of income in their household.

“Sadly, our survey re-enforces the idea that economic recovery is slow going and that 70% of survey respondents believe that current state of the economy has either shown no improvement or has worsened in the last 12 months,” stated Katie Vlietstra, Director of Government Affairs for NASE. “It is also evident from our survey that our members are perplexed at what they perceive as little action by Congress to put forth common sense ideas to address key issues related to the self-employed and micro-business community. For example, a permanent health insurance deduction, individual tax reform, and access to capital - three things that could significantly and positively impact the nation’s economy.”

When asked what their business experienced in the last 12 months, respondents said that they had to refrain from making improvements or growing, have experienced a significant decrease in sales and/or revenue, and had to utilize personal savings or retirement savings to address cash flow issues.

The self-employed and micro-businesses personal finances are often intertwined with their business finances. Survey respondents said their family has been affected in the following ways in the past 12 months: increase in credit card debt, utilization of personal savings or retirement savings, difficulty affording basic needs, like housing, utilities and food.

Eighty-one percent said they were not planning to hire full-time or part-time workers this year. When asked why, the top reason was that they had no need for additional help. Being unable to pay for the salary of an additional worker and being concerned about the current uncertainty in the economy were two other popular reasons respondents said they would not hire workers this year.

Of those that are hiring, 63% would be looking for part-time employees.

The following responses are from are from micro-businesses regarding how they have fared in the past year:

No credit available for operating capital contrary to government claims programs. The only way to get loan is if you don't need it!
I have had to file bankruptcy to keep my health insurance on myself and my employee.
I have gone without pay.
Selling my business is almost impossible so that I can retire.
I took on a part time job that provides health benefits since I could no longer afford to pay for my own.
I have experienced greater uncertainty about the status of my business. I have not been able to plan more than a few months ahead because my customers are unwilling to commit to contracts until the last minute.
I've had to cut back on business travel.
I've had to close the office and work from home.

Methodology:
The survey was available for NASE members to take in February and March. Almost 500 small business owners opted-in to the online survey and respondents were prohibited from taking it more than once.

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 on this topic.

NASE Statement on House Passed JOBS Bill

NASE — Thursday, 8 March, 2012 14:49:04 EST

“The National Association for the Self-Employed (NASE) applauds the overwhelmingly bi-partisan approval of The Jumpstart Our Business Startups (JOBS) Act” this afternoon,” stated NASE President and CEO Kristie Arslan, “We hope that the United State Senate will address this important package of bills swiftly and continue to support small businesses.”

Tax Time: Deducting The Business Use Of Your Automobile

NASE — Monday, 27 February, 2012 13:08:20 EST

For Immediate Release:

Contact:

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

Small Biz Owners Often Overlook This Important Deduction

Washington, D.C., February 27, 2012 – Business expenses come with the territory when you are an entrepreneur. Some expenses, however, can be easy to miss come tax time because they do not show up in your business checkbook.

Here are a few tips from the National Association for the Self-Employed (NASE) to remember in regard to deducting expenses for the business use of your automobile:

Calculating Business Use of Car:

Standard Mileage Rate (51 cents for 2011)
Actual Expense Method (calculate total costs of maintaining and driving your car, then multiply by the percentage of business miles to total miles driven in that car)

“Almost all small-business owners use their personal vehicle for business and too many of them forget to take a deduction for that use,” says NASE National Tax Advisor Keith Hall. “Don’t forget the deduction and don’t forget to maintain a good log of the miles that you drive, since that mileage log is critical in calculating and supporting the deduction.”

The NASE iPhone application TripAlly tracks, calculates and records miles driven to create the ultimate tax-deduction mileage log. Whether you need to track miles for your small business, charitable contributions, for employee reimbursement, or simply because you want to know, TripAlly can help. Download TripAlly at the iTunes App Store.

Click here for more details on TripAlly. Also check out IRS Publication 463, Travel, Entertainment, Gift and Car Expenses for more detail.

NASE Statement On President Obama's Corporate Tax Reform Plan

NASE — Wednesday, 22 February, 2012 16:54:42 EST

“Today’s joint proposal by the White House and the Department of Treasury announcing recommendations for business tax reform must be called what it truly is, corporate tax reform exclusive to major corporations and large employers," said NASE President and CEO Kristie L. Arslan. "Over and over again, we have continued to see the lack of understanding of the impact of current tax policy on the self-employed and micro-business community. While NASE supports broad tax reform, the President’s plan does not have the same bold vision for the self-employed which pay taxes at individual income tax rates. Sadly, 78% of U.S. businesses will continue to face a negative tax environment and constraints on their ability to grow and thrive in today’s tough economy unless the Administration and Congress start focusing on Main Street America.”

The President’s Budget and The Self-Employed Agenda: A First Step, But More Steps Are Needed

NASE — Tuesday, 21 February, 2012 11:41:14 EST

For Immediate Release:

Contact:

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

Washington, D.C., February 21, 2012 – The President’s proposed FY 2013 budget request released last week includes several initiatives of interest to the nation’s 22 million self-employed and at least one of the items on the National Association for the Self-Employed (NASE) Self-Employed Agenda.

“The President’s FY 2013 Budget is a step in the right direction, but it must be followed by additional concrete steps to address the specific challenges that make it difficult for self-employed people to start and grow businesses,” explained Kristie L. Arslan, president and CEO of the National Association for the Self-Employed. “The President’s budget request falls short on a critical element of the Self-Employed Agenda: the self-employment tax deduction on health insurance. The time is now for action on this priority which will provide America’s smallest businesses with the same business deduction for health coverage that big business enjoys.”

The President’s budget request includes provisions to help boost self-employed individuals and microbusinesses:

An Innovation Fund of $200 million to provide early-stage financing of new businesses
A provision to support community banks including $30 billion in capital outlays
A doubling of the pension plan start-up credit from $500 to $1,000 per person
A permanent doubling of the amount of start-up expenditure deductible from $5,000 to $10,000 per year

In addition, the President’s budget request calls for elimination of the alternative minimum tax (AMT), an item on the NASE’s Self-Employed Agenda.

Unfortunately, the budget request to expand the Small Business Health Tax Credit did not address allowing the self-employed to qualify for the credit, denying the benefit to the largest segment of the small business community.

Congressional negotiators last week announced agreement on a one-year extension of the payroll tax, another item on the Self-Employed Agenda. The NASE’s Self-Employed Agenda includes five common-sense tax policy solutions that will help spur economic growth in the self-employed sector of the economy. In addition to the AMT, health insurance and startup deductions and payroll tax extension, it includes simplification of the standard home office deduction.

Arslan added, “We need smart federal policies to encourage new businesses and ensure that America’s self-employed can continue to contribute to the nation’s economic growth.”

Congress Close To Agreement On Payroll Tax Extension

NASE — Friday, 17 February, 2012 10:53:15 EST

For Immediate Release:

Contact:

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

Self-Employed And Micro-Business Community Will Continue To See Savings

Washington, D.C., February 17, 2012 – Congress is coming out ahead of this month’s payroll tax extension, currently set to expire at the end of February. Senate and House conference committee members have agreed to a 10-month extension of the payroll tax deduction. The deduction extension equates to an additional $40 per pay period for nearly 170 million American workers.

The National Association for the Self-Employed (NASE) is pleased that Congress was able to work out a compromise on this issue, rather than resort to the political blame game that the nation saw in previous negotiations. Passing the payroll tax extension will provide extra savings for the self-employed and micro-businesses who serve as employer and employee within their business.

The extension of this tax benefit is immensely important to the self-employed business owner trying to stay afloat in a still troubling economy. The extra savings can be used to purchase office supplies, for additional marketing efforts or to offset rising gas prices.

“Once the issue of the payroll tax deduction is resolved, we hope that the Senate and House will quickly work to address several other important pieces of legislation that could further encourage growth within the small business community and therefore the U.S. economy,” said Director of Government Affairs Katie Vlietstra. “Two issues that should be addressed this year include the self-employment tax deduction on health insurance and the standard home office deduction.”

Final passage of the conference report by the Senate and the House is expected Friday or even in a rare Saturday session with the President’s signature to follow.

Small Business Startup Bill Introduced In House

NASE — Wednesday, 15 February, 2012 13:31:18 EST

For Immediate Release:

Contact:

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

Legislation Would Make Permanent Deduction For Startups

Washington, D.C., February 15, 2012 – The House has introduced another piece of legislation for future self-employed individuals. The Help Entrepreneurs Create American Jobs Act of 2012 (H.R.4032) makes permanent the deduction for startups at $10,000. If left to expire, the deduction reduces to $5,000.

“We applaud Representatives Johnson (D-Ga.) for introducing this important tax deduction for those Americans looking to become self-employed, said NASE Director of Government Affairs Katie Vlietstra. “The permanent deduction, allows for individuals to plan prudently their entry into self-employment and not feel rushed to start their own business before a looming end of a vital tax benefit. We look forward to supporting this effort and recommend swift passage.”

A measure extending this startup benefit was also introduced in the Senate. Stay tuned to the NASE’s weekly e-newsletter, Washington Watch, for updates.

Small Business Worker Classification: Independent Contractor Or Employee?

NASE — Tuesday, 14 February, 2012 12:58:57 EST

For Immediate Release:

Contact:

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

IRS Sets Important Distinctions Come Tax Time

Washington, D.C. – The self-employed contribute a mighty portion to the U.S. economy – nearly $1 trillion. There is no question that they are helping create jobs by growing and hiring new workers. The question is, by hiring additional workers, are micro-businesses (those with 10 or fewer employees) actually creating more paperwork for themselves?

“Unfortunately, there always seems to be more paperwork required as the business grows,” says Keith Hall, National Tax Advisor for the National Association for the Self-Employed (NASE). “Knowing whether a new worker is an employee or an independent contractor is critical in knowing exactly what paperwork is required.”

As businesses grow, many owners find the need for new workers to help manage the needs of new and existing clients. At that point, it is extremely important to know the classification of those new workers and to make sure you pay them correctly and then report those payments correctly to the IRS at the end of the year.

Many small businesses believe that the classification of each new worker as either an employee or an independent contractor is simply a matter of choice. Not so, says the Internal Revenue Service (IRS). The IRS actually uses a multi-step checklist to evaluate whether a new worker is an employee or an independent contractor. If you are unsure whether to classify your newest worker as an employee or an independent contractor, here is a quick way to sort them out:

If you control the Who, Where, When and How the work is done, then they are probably an employee. This means that you, as the business owner, must file a Form W2, withhold income and payroll tax, and potentially contribute to their retirement plans.
If the worker controls their own work product and even has other customers besides you, then they are most likely independent contractors. Payments to independent contractors are reported on IRS Form 1099, and the independent contractors are responsible for their taxes and their own tax forms, including Schedule C, Profit or Loss from Business and Schedule SE, Self Employment Tax.

“It’s very important to do your homework and to make a good determination of the correct classification for each of your new workers. If you incorrectly classify workers, the IRS can come in later and reclassify payments you have made, which could potentially lead to penalties and interest if taxes were underpaid,” adds Hall.

If you are concerned that you may have misclassified workers in the past, don’t worry. The IRS has developed the Voluntary Classification Settlement Program in order to provide an opportunity for taxpayers to get things right and potentially avoid penalties that they may otherwise have to pay. Visit IRS.gov for more information.

The National Association for the Self-Employed (NASE) also offers micro-business tax advice from certified public accountants through TaxTalk. Submit your question and receive an answer from qualified CPAs at the NASE’s Tax Resource Center.

NASE Lauds Senate For Introducing Small Business Tax Extenders Act

NASE — Friday, 3 February, 2012 16:41:24 EST

For Immediate Release:

Contact:

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

NASE Calls For Greater Emphasis On Self-Employed Businesses

Washington, D.C., February 3, 2012 – The NASE’s recent call to Congress to heed the Self-Employed Agenda focusing on taxes was heard this week in the Senate. Senators Olympia Snowe (R-Maine) and Mary Landrieu (D-La.) introduced the Small Business Tax Extenders Act of 2012, which would continue some popular tax breaks for the self-employed and micro-businesses (10 or fewer employees) for an additional two years.

The bill includes the following provisions:

Self-Employed Health Insurance Deduction – Whereas sole proprietors used to be the only business entity that could not deduct their health insurance costs as a business expense, the extension of this immensely popular provision would include 2012 and retroactively includes tax year 2011.
Startup Deduction for New Businesses – The self-employed can deduct up to $10,000 of their startup costs on their taxes. If left to expire, the deduction will reduce to $5,000.
Section 179 Increased Expensing – Micro-businesses can expense 100 percent of their equipment in the first year, up to $500,000.
Extension of 5-Year Carryback – The self-employed have the ability to report a loss in income tax for 5 previous years.
AMT Exemption for Small Businesses – The Alternate Minimum tax has never been adjusted for inflation, so this extender helps ensure that business owners do not get heavily taxed at decades-old levels.

“On behalf of the self-employed and micro-business owners, we applaud Senators Snowe and Landrieu for the continued support for the nearly 22 million Americans that would benefit from these tax extenders,” commented Katie Vlietstra, NASE Director of Government Affairs, “At a crucial time in our economy’s recovery, these tax deductions will allow the self-employed to expand their businesses which in turn supports their local and state economies. NASE will continue to fight for tax equity for the self-employed, this being a crucial first step.”

Updated: NASE Supports Bill To Cut Excessive Paperwork For Small Businesses

NASE — Wednesday, 1 February, 2012 15:00:00 EST

For Immediate Release:

Contact:

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

1099K Overreach Prevention Act Set To Dial Back Legislation Regarding Credit Card Reporting

Washington, D.C. – The National Association for the Self-Employed (NASE) announced its support of legislation introduced in the House and Senate that would help decrease a potential paperwork nightmare for the self-employed and micro-businesses (10 or fewer employees). The 1099-K Overreach Prevention Act, introduced by Senators John Thune (R-S.D.) and Maria Cantwell (D-Wash.) in the Senate and Representatives Aaron Schock (R-Ill.) and Bobby Schilling (R-Ill.) in the House, would repeal the 1099-K reporting requirement on credit and debit card transactions.

Starting next year, the IRS would require business owners to reconcile the amounts they collect via credit and debit cards with the aggregate gross receipts amount from Form 1099-Ks, a new form this year to be sent to all business taxpayers who accepted merchant cards for payments or who received payments through a third party network. In preparation of this new reporting requirement, the IRS amended the tax forms for business taxpayers, including Schedule C filers to include Lines 1a -1d. The paperwork impact of having to reconcile actual gross receipts with information provided from Form 1099-Ks would be enormous on the self-employed and micro-businesses and result in a potential negative audit environment.

“We are pleased that congressional leaders in the Senate and House have introduced bi-partisan legislation to correct IRS regulatory interpretation of credit card reporting requirements that burden the self-employed and micro-business community,” said Katie Vlietstra, NASE Director of Government Affairs. “The legislation introduced by Senators Thune and Cantwell in the Senate and Representatives Schock and Schilling in the House, would alleviate significant confusion related to basic accounting procedures that could inadvertently cause an increase in audits for America’s smallest businesses. The IRS took steps in the 2011 tax year to defer this requirement and we hope to see further concerns on this misguided regulation alleviated with successful passage of this legislation this year.”

NASE, Obama Administration Celebrate One-Year Anniversary Of Startup America Initiative

NASE — Tuesday, 31 January, 2012 16:12:00 EST

For Immediate Release:

Contact:

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

NASE Calls For Greater Emphasis On Self-Employed Businesses

Washington, D.C., January 31, 2012 – President Barack Obama celebrated the entrepreneurial initiative enacted one year ago by asking Congress for additional tax breaks and assistance for small businesses. According to the White House, the Startup America Initiative seeks to merge public- and private-sector forces to help encourage business growth and job creation.

The new action plan calls for an extension of the $10,000 deduction for startup expenses and 100 percent depreciation for equipment in the first year of business.

“The NASE is happy to see the President highlight the pivotal role that small businesses play in the economy by sending his agenda to Congress,” said NASE President and CEO Kristie L. Arslan. “Tax incentives for startups and for businesses that have recently purchased new equipment are certainly a start, but we are concerned that so few of the policies suggested actually apply to the largest segment of small businesses – the self-employed and micro-businesses. That key demographic makes up more than 78% of the nation’s small business population.”

President Obama’s legislative agenda also included increasing access to capital through the creation of a national crowdfunding framework and expanding the yearly budget for the Small Business Investment Company Program to $4 billion.

Read the NASE’s tax wishlist, the Self-Employed Agenda, here.

NASE To The White House And Congress: Don’t Forget The Self-Employed Agenda This Year

NASE — Monday, 23 January, 2012 10:02:34 EST

For Immediate Release:

Contact:

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

Washington, D.C., January 23, 2012 – As the President prepares to deliver his annual State of the Union address and Members of Congress prepare their talking points in response, the nation’s self-employed are looking for action, not just more words. With the economy showing signs of life, the 22 million Americans who are self-employed must not be forgotten in the back and forth over big policy changes.

While the self-employed struggle with a disproportionate tax burden, they are also trying to drive economic growth by building their businesses. With small and micro-businesses responsible for a significant part of economic growth in the U.S., the policy and regulatory changes required to help this sector are vital to broader national economic improvements.

“With all of the recent talk about jobs from energy production, pipelines or other big business, the jobs pipeline that we’re not talking about – the self-employed – is often forgotten,” explained Kristie L. Arslan, president and CEO of the NASE. “The President and Congress must check off the items on the Self-Employed Agenda if they want to ensure continued economic growth.”

The Self-Employed Agenda for 2012 includes action on several initiatives that will help level the playing field for the self-employed sector and help spur broader economic gains nationally:

Self-Employed Health Insurance Deduction: The payments that small-business owners make for health insurance premiums for themselves and their families won’t be as tax beneficial for 2011 tax returns as they were for 2010. The premiums paid for health insurance by the small-business owner will be still be deductible on page one of form 1040, but unlike 2010, those same premiums will not be included on Schedule SE, Self Employment Tax. That means net earnings from self employment will be higher and the related Self Employment Tax will be higher. This is in effect a 15.3% tax hike on the small-business owner. The self-employed need this deduction extended or made permanent to avoid the dramatic increase in tax burden that will otherwise take effect.
Payroll Tax Relief Extension: The payroll tax cut for 2011 expires at the end of February 2012. Small and micro-businesses need this cut to be extended for the full year to ensure they can continue to grow and contribute to overall economic improvement.
Standard Home Office Deduction: Entrepreneurs managing their business out of their home face added burdens at tax time. Bipartisan legislation has been introduced in Congress to allow business owners the option of a $1,500 standard deduction, but would not preclude taxpayers currently qualifying for the home office deduction from continuing to itemize their expenses should they choose. Congress should pass and the President should sign legislation simplifying the standard home office deduction.
Tax Deduction for Startups: Passed as part of the Small Business Jobs Act of 2010, it allowed individuals to take a $10,000 deduction for start-ups in 2011. In 2012, the deduction will decrease to $5,000. Maintaining the current level for this deduction is vital to encouraging individuals to continue to start new companies and contribute to the growth of our economy.
Alternative Minimum Tax (AMT) Exemption: For tax year 2011, the AMT exemption for a married couple filing a joint return is $74,450, and $48,450 for single filers, representing a $2,000 and $1,000 increase, respectively. For tax year 2012, the AMT exemptions are currently scheduled to decrease to year 2000 levels to $45,000 for a married couple and only $33,750 for a single taxpayer. Small and micro-businesses need this exemption to remain at 2011 levels to ensure the self-employed are not unfairly singled out for higher taxes by this reduction in the exemption.

Arslan added: “2012 is a pivotal year for our country, but if all we do is focus on politics, and forget tax and other policy changes that will support the self-employed, our economy will stagnate and we’ll suffer the consequences of ignoring these key drivers of our national growth and expansion.”

Small Businesses Support SBA Cabinet Level Status

NASE — Friday, 13 January, 2012 11:25:00 EST

For Immediate Release:

Contact:

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

Washington, D.C. – As news reports circulate that President Obama will recommend the Small Business Administration (SBA) be elevated to Cabinet-level status, Kristie L. Arslan, President and CEO of the NASE, reacted by supporting the effort saying “it signals the importance of the small business community to our national economy.”

“Millions of small businesses across the country will be well-served by President Obama’s effort to elevate the Small Business Administration to Cabinet-level status. It will provide a signal to millions of small business owners – including the self-employed and micro-businesses – that they are an important part of the national economy.”

NASE Grows Its Staff To Better Serve Small Business Membership

NASE — Monday, 9 January, 2012 13:34:41 EST

For Immediate Release:

Contact:

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

Brings On Marketing, Advocacy Personnel For 2012

Washington, D.C. – The National Association for the Self-Employed (NASE) is proud to announce the addition of two staff members to its Washington, D.C. office. We welcome Ron McNally, CAE, Vice President of Membership & Marketing and Katie Vlietstra, Director of Government Affairs to our team.

“The NASE has added key staff members to its team, which will help us move the association into its next phase of growth, ensuring that we continue to be responsive to the needs of our members and that we continue to have a strong presence on Capitol Hill,” said NASE President & CEO Kristie L. Arslan.

Ron McNally is an accomplished Certified Association Executive (CAE) with over 30 years of experience in membership recruitment and retention, marketing, customer service and volunteer relations. Prior to the NASE, Ron served as chief community officer and vice president of Membership and Marketing with the American Society of Association Executives (ASAE), where he helped orchestrate a membership turnaround, as well as improving the performance of the marketing and volunteer relations functions. Ron also revamped the marketing function resulting in increased program registration and product sales. He also served as senior vice president for the National Fisheries Institute in Arlington VA. Serving as the number two executive, Ron established a new office infrastructure and association management system, increasing productivity and membership recruitment in the first twelve months.

Ron enjoys volunteering at the local food bank and participating as an instructor for the First Tee Program. Ron holds Masters and Bachelor’s degrees from the University of Maryland and is an avid golfer, enjoys working out and is a self-professed “Do-It-Yourselfer.”

Katie Vlietstra is an experienced government and public affairs professional with over seven years of experience advising on legislative and regulatory action. Prior to joining the NASE, Ms. Vlietstra served as a public policy analyst for WorldatWork, the foremost human resources association. Additionally, Ms. Vlietstra served as one of the lead lobbyists for the association’s activities on Capitol Hill and within the federal government. As a former advisor to Triadvocates LLC, Ms. Vlietstra led liaison efforts with trade associations, patient organizations and consumer groups. Ms. Vlietstra is President of the Women Under Forty Political Action Committee (WUFPC), board member for Women in Government Relations, treasurer for the State Society of Arizona, and corporate director for the Phi Sigma Sigma Fraternity, Inc.

A native of California, Ms. Vlietstra earned her Bachelor of Arts degree at Chapman University and a Masters degree from George Mason University.

2011 Tax Changes For The Self-Employed

NASE — Monday, 9 January, 2012 10:20:34 EST

For Immediate Release:

Contact:

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

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

Washington, D.C. – 2011 ended with a nice upward move on Wall Street and an increased focus on the 2012 election year, but without a clear understanding of small business taxation. The self-employed health insurance deduction for Self Employment Tax was eliminated and the Payroll Tax cut was extended only for two months. Will the tax cut be extended yet again or will it be allowed to expire? The debate continues and unfortunately the small-business owner is often the last to know. The National Association for the Self-Employed (NASE) is committed to advocating for the small-business owner in Washington, D.C. and committed to providing quick answers from the debate, once those answers are known. It has never been more important to utilize available resources, such as the NASE, for small-business owners in order to maintain compliance.

“Perhaps more than at any time I can remember, this is a time of uncertainty for the small-business owner,” said Keith Hall, National Tax Advisor for the NASE. “With a Presidential election looming, the tax code will become an increasingly powerful chip in the debate for the White House. Job credits, payroll tax cuts, investment incentives, all will be debated and re-debated. The only certainty is that things will change and it is critical that the small-business owner keep track of all the things the IRS will be asking them to do.”

Prior to preparing 2011 tax forms, the self-employed and micro-businesses (fewer than 10 employees) should be aware of a number of tax law changes, but also must stay focused and connected for new changes that are inevitable during 2012.

The following tax law changes relate to 2011 returns:

Self-Employed Health Insurance Deduction – Unfortunately, the payments that small-business owners make for health insurance premiums for themselves and their families won’t be as tax beneficial for 2011 tax returns as they were for 2010. The premiums paid for health insurance by the small-business owner will be still be deductible on page one of form 1040, but unlike 2010, those same premiums will not be included on Schedule SE, Self Employment Tax. That means net earnings from self employment will be higher and the related Self Employment Tax will be higher. This is in effect a 13.3% tax hike on the small-business owner. The NASE is committed to eliminating this inequity and restoring this deduction. Check out NASE.org for more updates from time to time.
Payroll Tax Cut for 2011 – Beginning January 1, 2011, the employee’s part of the OASDI portion of Social Security tax was decreased from 6.2% to 4.2%, on the first $106,800 paid to each employee. For the small-business owner, the OASDI portion of Self Employment Tax was decreased from 12.4% to 10.4% which was a significant benefit. The impact for the small-business owner will be included on Schedule SE and means up $2,000 in lower taxes for all working Americans.
Payroll Tax Cut for 2012 – The payroll tax cut for 2011 was expected to last only for one year, however, the cut has been extended for the first two months of 2012. The debate in Washington continues to be heavy on this subject and there is a good chance the tax cut could be extended even further. Small-business owners will need to keep track of these changes since either an extension or expiration will still require additional paper work and diligence to remain in compliance. Bookmark NASE.org to stay up to date on progress related to this important tax issue.
Reporting of Employer Provided Health Care – The Affordable Cart Act which was passed in 2010 required that employers begin reporting the cost of coverage under an employer-sponsored group health plan. That reporting was originally required beginning on January 1, 2011 so that business owners would have to report those amounts for the year just ended. The good news is that more time has been granted. The reporting for 2011 is now voluntary for all employers and optional for 2012 for those employers with less than 250 employees. Go to NASE.org and check out Notice 2012-9, issued Jan. 3, 2012 for more detail.
Increase in Maximum Section 179 Deduction – The Small Business Jobs Act of 2010 increased the maximum allowable deduction under Code Section 179 from $250,000 to $500,000 for tax years beginning in 2010 and in 2011. This provision provides additional incentive for small businesses who invest in new equipment for both years. At the same time, the limit for the phase out of the deduction was increased to $2,000,000 from $800,000.
Standard Mileage Rates Adjusted for 2011 – Business owners using their vehicle for company business can deduct 51 cents per mile driven on their 2011 tax return. The rate has also been set for 2012 at 55.5 cents per mile. The rate for medical miles driven was 19 cents per mile for 2011 and 23 cents per mile for 2012, while charitable miles use the rate of 14 cents per mile for both years.
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 $169,000 and $179,000.
AMT Exemption Increased for 2011 – For tax year 2011, the Alternative Minimum Tax exemption for a married couple filing a joint return is $74,450, and $48,450 for single filers, representing a $2,000 and $1,000 increase, respectively. The AMT exemptions are currently schedule to decrease to year 2000 levels to $45,000 for a married couple and only $33,750 for a single taxpayer. The NASE is working diligently to keep the exemption levels from decreasing for 2012. Go to NASE.org to keep track of this important process.

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. 2012 is guaranteed to be a year of uncertainly and it is critical to maintain contact with up-to-date resources to help keep track of the many changes that are on the horizon.

Individuals who are unable to pay the tax that they owe with the return still have some options. It is important that the return still be filed on time even if the full amount due cannot be paid. Consider including IRS form 9465, Installment Agreement Request, which will provide additional time to meet the tax obligation. Contacting the IRS at 1-800-829-1040 as soon as possible if additional tax payment difficulties arise is the best advice.

Find out more information about these and other tax law changes for the 2011 tax season at www.IRS.gov.

Economic Clock Running Out On Payroll Tax Extension

NASE — Tuesday, 6 December, 2011 10:32:03 EST

For Immediate Release:

Contact:

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

Millions Of America's Smallest Businesses Are Waiting For Congress To Act

Washington, D.C., December 6, 2011 – As the U.S. Senate prepares to debate another payroll tax extension proposal, Kristie Arslan, President & CEO of the NASE, encourages our policymakers to put partisan politics aside and pass the payroll tax extension:

“It is important that our nation’s smallest businesses have the tools and resources they need to serve the American consumer this Holiday season and beyond. Passing the payroll tax extension will put that extra savings in the pockets of not only consumers, but also in the pockets of the self-employed and micro-businesses who serve as employer and employee. This relief can help pay for additional supplies, phone lines and online advertising for small businesses that continue to struggle as the economy falters.

“In addition to the payroll tax break, Congress can invest in small fixes that will go a long way for the small business community: fix the tax disparities that make small businesses pay more than their corporate counterparts for health insurance; increase small business lending to help start-ups create new jobs and help existing businesses expand; help the states launch self-employment training programs for residents.

“America’s smallest businesses want our policymakers to work together to find a solution that put’s America back to work – not just political finger pointing. The bottom line is that stimulating the economy will help boost the bottom lines of America’s smallest businesses.

Partisan Politicking Trumps Economic Recovery?

NASE — Tuesday, 22 November, 2011 13:09:58 EST

For Immediate Release:

Contact:

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

Policymakers Fail To Address Our Nation's Economic Woes

Washington, D.C., November 22, 2011 – As the news reports that the Joint Select Committee on Deficit Reduction – also known as the super committee – has failed to reach a budget deal, Kristie Arslan, President & CEO of the National Association for the Self-Employed, blasts our nation’s lawmakers for playing partisan politics with the economy:

“Lawmakers have clearly been unable to shake the partisanship that plagued political discourse around the national debt and our debt ceiling last summer. The fact that the Congressional ‘super committee’ failed to come close to a plan raises serious questions about the role of government in stimulating the economy. Helping Americans get back to work should be more important than political finger-pointing.

“America’s smallest businesses – self-employed business owners – want to see the economy move into recovery mode now; it would have been nice to get a boost from a comprehensive debt plan, but there’s still plenty can Congress can do to help small businesses stay afloat and expand. They can fix the tax disparities that make small businesses pay more than their corporate counterparts for health insurance. They can increase small business lending to help start-ups create new jobs and help existing businesses expand. And they can help the states launch self-employment training programs for residents.

“As we enter the presidential election season, we all expect politics to be at play. But politics shouldn’t prohibit Washington from putting small businesses in a strong position to help the economy recover.”

November Is National Entrepreneurship Month

NASE — Friday, 18 November, 2011 10:08:24 EST

For Immediate Release:

Contact:

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

NASE Joins The White House In Celebration

Washington, D.C., November 18, 2011 – President Barack Obama has proclaimed November 2011 as National Entrepreneurship Month. The National Association for the Self-Employed (NASE) would like to thank America’s self-employed and micro-business owners who work tirelessly each day to support themselves and their families, as well as contribute to their communities through starting and maintaining a business.

The creation of a self-employed job is often overlooked by economists and policymakers as a means to jumpstart the economy. However, the NASE knows that every time an individual starts a business or attempts to grow their business that the unemployed rolls shrink. With nearly 22 million entrepreneurs and micro-businesses (10 or fewer employees), that adds up to a lot of job creation.

“The NASE is glad that the Administration set aside an entire month to showcase the nation’s entrepreneurs and to spotlight federal and state programs that are available to help them,” said NASE President and CEO Kristie L. Arslan. “Successful micro-businesses are our nation’s greatest tool in helping to curb unemployment. We believe so strongly in that notion that we created a Startup Kit to help new businesses find their way.”

Earlier this year, Arslan called for a National Self-Employment Initiative that would provide state governments with tools and resources to help the unemployed or underemployed learn business skills in order to start up their own ventures. Programs have also been launched by both the White House (Startup America Initiative) and the Small Business Administration (Young Entrepreneurship Series).

NASE Celebrates Small Business Saturday

NASE — Monday, 7 November, 2011 13:11:54 EST

For Immediate Release:

Contact:

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

Aims To Unite And Inspire Consumers To Shop Small On November 26, 2011

Washington, D.C., November 7, 2011 – The National Association for the Self-Employed (NASE) today announced its participation in the second annual Small Business Saturday on November 26, 2011. Small Business Saturday is a day for dedicating a portion of holiday shopping to local, independently-owned small businesses.

The NASE recognizes the importance of small businesses and the self-employed, the jobs they create and the culture they instill in local communities. There are nearly 22 million self-employed businesses in the nation. Small businesses also have generated 64 percent of net new jobs over the past 15 years and employ just over half of all private sector employees, according to the Small Business Administration.

"With the number of micro-businesses in the United States, it is time that Main Street got the same attention as the big box stores during the holidays," commented NASE President and C.E.O. Kristie L. Arslan. "The NASE is proud to co-sponsor Small Business Saturday in 2011."

“It is critical that we get as many supporters on board as possible to generate demand for small, independently owned businesses this holiday season and beyond,” said Maryann Fitzmaurice, senior vice-president, American Express OPEN.

Joining the Annual Initiative

Social media will play a central role in helping raise awareness about the importance of supporting small business and recognizing Small Business Saturday. The Small Business Saturday Coalition will be driving consumers and business owners to facebook.com/smallbusinesssaturday where they can participate in many ways, including:

American Express is also giving $100 of free Facebook advertising to 10,000 business owners who sign up at facebook.com/smallbusinesssaturday to help build online buzz and drive customers to their stores on Small Business Saturday. By simply entering a few pieces of information and clicking a button, these business owners can create a personalized, geo-targeted ad that will run on Facebook leading up to November 26.
American Express is giving a $25 statement credit to 200,000 Cardmembers who register their Card and use it to shop on Small Business Saturday at any locally-owned, independent small business that accepts American Express.
Small business owners can go to Facebook.com/smallbusinesssaturday to download online promotional materials that will help them drive sales to their business on Small Business Saturday.
Everyone can spread the word about the day and their favorite businesses by giving a shout-out to their favorite local shops and restaurants via Facebook and Twitter.

NASE Launches Startup Kit To Spur Job Creation

NASE — Monday, 24 October, 2011 12:32:23 EST

For Immediate Release:

Contact:

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

Complete, One-Stop Shop Startup Business Guidance As The Economy Continues To Tumble

Washington, D.C., October 24, 2011 – As President Barack Obama travels the country selling his American Jobs Act and the U.S. Congress works to meet a pending deadline on our national debt challenges, the National Association for the Self-Employed (NASE) today released its new small business Startup Kit – a complete, one-stop shop of tips and guidance that aspiring entrepreneurs need to consider when opening a new small business. The Startup Kit walks a new business owner through the 10 steps to starting a business and positioning it for success.

“Prospective entrepreneurs across the country may be putting plans to start a new business on hold because of the current economic climate,” said Kristie Arslan, President & CEO of the National Association for the Self-Employed. “But a down economy is not necessarily a bad time to start a business. Our new Startup Kit pulls together our 30 years of experience and knowledge on launching successful small businesses, including tax and legal advice, marketing guidance, and options for financing your new venture.”

NASE’s tax and businesses experts contributed their experience and knowledge into the Startup Kit. Some of the topics covered in include:

Start thinking of yourself as a business owner – The self-employed know it is important to learn to juggle more-than-one task, like handling the bookkeeping, marketing and keeping an eye on the competition, to name a few.
Take care of your tax responsibilities – For those who have worked for someone else, the employer handles tax issues for you. As a business owner, you’ll have to stay on top of things like estimated taxes, self-employment taxes, state and local sales taxes, and more.
Choosing the right business structure – Almost every new business owner asks this question: What’s the best legal structure for my business? Unfortunately, there’s no one right answer and determining the best approach often involves the help of a professional.

The Startup Kit also comes with tons of interactive information, business how-to’s, and frequently asked questions, including:

How to properly fund your business
Developing good financial habits
Understanding the importance of marketing
Learning how to protect yourself and your business

Visit the NASE on Facebook to get a free preview of chapter 3 of the kit: Know The Legalities of Operating Your Business. NASE’s Startup Kit is also available in digital form on iTunes, nook, and on Kindle.

America’s smallest businesses – the self-employed and micro-businesses with fewer than 10 employees – are both vulnerable to the current economic climate and critical to our economic recovery. These businesses have demonstrated the highest, steady growth rate in recent years. Between 2006 and 2007, self-employed businesses demonstrated a 4.5 percent growth rate.

“Our economy would benefit from a renewed focus on self-employment, such as a new national self-employment initiative that will foster entrepreneurialism and allow new and existing businesses to flourish,” said Arslan.

NASE Urges Lawmakers To Launch National Self-Employment Initiative

NASE — Wednesday, 12 October, 2011 14:24:35 EST

For Immediate Release:

Contact:

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

Washington, D.C., October 12, 2011 – With lawmakers shelving President Obama’s jobs bill in favor of breaking it into smaller pieces, Congress has little to offer right now from a policy standpoint to help kick start our economy. Glaringly absent from the jobs debate has been specific proposals that speak to how to encourage and support startups and the self-employed, our nation’s biggest job creators.

The National Association for the Self-Employed (NASE) has introduced a National Self- Employment Initiative to get the conversation started.

“There is no doubt we need more Americans earning a paycheck and contributing to get the economy back on track,” said NASE President and CEO Kristie L. Arslan. “The NASE’s National Self-Employment Initiative provides a framework to lawmakers on how we can foster entrepreneurialism and allow new and existing businesses to flourish.”

The Initiative has four key parts, detailed below:

Simplify the Tax Code – Prioritize simplifying the tax code and creating tax parity for self-employed businesses. Small-business owners must be their own Human Resources, Sales and Accounting Departments, among other tasks. They do not have the resources of big businesses who can hire teams of people to manage their affairs and keep them compliant with current law. A few small changes to the tax code would make a big impact for the nation’s smallest businesses.
Financing for Start-ups and the Self-Employed - Access to capital is crucial to the growth of new firms and micro-lending is especially important to help bolster the self-employed. While last year’s Small Business Jobs Act promised increased funding opportunities through small community banks and credit unions, that program has yet to materialize, leaving business owners to rely on credit cards and their own savings to get by or expand.
Teach the Rewards of Self Employment - Foster entrepreneurship education in secondary schools as well as colleges and universities. Make starting a business a viable career option for our young Americans and teach them the skills they need to take turn their ideas into profitable businesses.
Creation of State-Led Entrepreneurial Programs - Assist all states in launching self-employment training programs for residents. These training programs should be available free to all unemployed citizens providing them with an avenue to create their own job, should they be unable to find one.

“The first step to creating jobs is encouraging out of work Americans to create a job for themselves through self employment. In this difficult economic climate, offering tax incentives to corporations to hire will not do the trick. The only viable path to economic recovery is by promoting the innovation and job creation that comes from new business startups,” commented Arslan.

Arslan recently wrote a commentary on the need for the National Self-Employment Initiative on the Huffington Post.

National Self-Employment Initiative For Small Business Needed

NASE — Wednesday, 5 October, 2011 12:31:47 EST

For Immediate Release:

Contact:

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

Arslan: “Long-Term Policy Solutions Are a Recipe for Innovation and Job Creation”

Washington, D.C., October 5, 2011 – Despite the heightened rhetoric about America’s small business community fueling economic growth, this critical business sector has been largely left out of the policy discussion pertaining to the President’s American Jobs Act and our national debt. Kristie Arslan, President & CEO of the National Association for the Self-Employed, the leading advocate for our nation’s smallest businesses - the self-employed and micro-businesses - offered the following situation analysis as our policymakers struggle to get our economy back on track:

“It’s politics as usual in Washington – the fight over the President’s jobs bill leaves America’s unemployed and underemployed wondering if Washington actually gets it. Our policymakers like to claim they want to help the small business community, but don’t take action to back it up. The economic outlook for our nation’s small businesses – the self-employed and micro-businesses – is bleak even if we avoid the threatening double-dip recession. Giving small businesses the support they need to turns things around should be a top priority that rises above party politics up on Capitol Hill.

“Too many of the current policy proposals are focused on what Washington sees as the job-producing class – the wealthiest Americans – who are clearly not creating jobs with or without generous incentives. We need a national self-employment initiative to help America’s smallest businesses survive the current economic turmoil and help some of the nine million people who are out of work to join their ranks. The initiative should prioritize simplifying the tax code and creating tax parity for self-employed businesses, direct small business financing to startups and the self-employed, foster entrepreneurship education in secondary schools as well as colleges and universities, and assist all states in launching a self-employment training program to be available to unemployed residents. These long-term policy solutions are a recipe for innovation and job creation in our nation.”

In a recent interview with McClatchy, Arslan argued that the jobs and tax discussion has focused on support for the larger corporate businesses, not the small business community. With the majority of all small businesses containing just 10 or fewer employees, Arslan noted that relatively inexpensive, small fixes to the tax code could have a profound effect on providing support for American’s smallest businesses. Creating long-term tax and economic policy instead of implementing short-term fixes can foster long-term growth.

Small Biz Reax To POTUS Jobs Plan

NASE — Thursday, 8 September, 2011 19:00:00 EST

For Immediate Release:

Contact:

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

Small Tweaks to Existing Law Creates Jobs and Boosts Economy

Washington, D.C., September 8, 2011 – As President Barack Obama presents the American Jobs Act before a joint session of Congress, Kristie L. Arslan, President & CEO of the National Association for the Self-Employed, the leading advocate for our nation’s smallest businesses - the self-employed and micro-businesses - offered the following statement on critical actions both the President and Congress can take to get our economy moving:

“We can all agree that we must take bold action to address persistently high unemployment and get Americans back to work. Small business is the engine of our economy and now is not the time to pay lip service to the small business community - now is the time to turn those words into action.

“America’s smallest businesses - the self-employed and micro-business - are looking for our policymakers to make small tweaks to existing law that will go a long way.

“The key is for any action taken to have a measurable and positive impact on the economy. Economists estimate that each dollar added to employees’ paychecks thanks to payroll tax relief generates 90 cents in spending. A pretty good economic stimulus, but extending that same dollar to employers as well will generate an additional $1.20 in economic activity. Broad payroll tax relief will allow the self-employed, who pay both the employee and employer portions of the payroll tax, to significantly stimulate the economy. Stabilization and growth is essential to creating the conditions for adding jobs and getting America back to work.”

In advance of President Obama’s jobs speech before Congress, Arslan authored an op-ed in Roll Call, Open Letter to the President and Congress, that called on the President and Congress to make the tough decisions required to fix our economy.

NASE Gives $52,000 In College Scholarships

NASE — Monday, 22 August, 2011 11:42:56 EST

For Immediate Release:

Contact:

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

Over $1.9 Million Awarded In 23 Years Of Academic Support

Washington, D.C., August 22, 2011 – Just as states across the nation are cutting financial aid due to budget shortfalls, the National Association for the Self-Employed awarded $52,000 in scholarship money to help 10 families send their children to college.

Merit-based scholarships worth $4,000 were awarded to 10 students. The NASE Future Entrepreneur received $12,000, with a promise of $4,000 more for his senior year as long as he maintains a high academic performance.

The scholarship awards will be used to defray the cost of tuition, which has risen to an average of $7,605 per year for four-year public colleges, and $27,293 per year for private schools, according to the College Board.

“For 23 years, the NASE has viewed this scholarship program as a way to help our members send their children to college,” said Kristie L. Arslan, NASE president. “The students can study any subject at any accredited college. I’m proud we can help these students achieve their dreams.”

The NASE Scholarship Program began in 1989 as a way to invest in the future of entrepreneurship. Since its start, over $1.9 million has been awarded to the dependents of NASE Members.

The 2011 NASE Future Entrepreneur, Benjamin Seidel from Columbia, Mo., is the founder of website development company SRADCO Web Designs, and co-founder of CentralMO.com, a community resource website. With his scholarship of $16,000, he will be continuing his studies at the University of Missouri in Columbia as a junior this fall.

The 2011 NASE $4,000 Scholarship recipients are:

Aaron Burns of Fredericksburg, Va.
Taylor Demeter of Falls Church, Va.
Kelly Gwiner of Fostoria, Ohio
Andrea Hansen of Allison Park, Pa.
Brendan Langford of San Antonio, Texas
Michael Langford of San Antonio, Texas
Lindsey Maxon of Arlington, Texas
Russell Stockman of Weatherford, Texas
Diana Thomson of Talladega, Ala.
Alexander Vining of Poulsbo, Wash.

For more information about the NASE Scholarship Program or the 2011 recipients, please contact Kristin Oberlander at koberlander@NASEadmin.org.

Web Guru Receives NASE College Scholarship Of $16,000

NASE — Monday, 22 August, 2011 11:24:44 EST

For Immediate Release:

Contact:

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

Columbia, Mo., Student Founded Web Design Business, Launched Community Resource Website

Washington, D.C., August 22, 2011 – Benjamin Seidel of Columbia, Mo., built his first website when he was just 13, and started his own Web design company with his father’s help three years later. Seidel’s company, SRADCO Web Design, soon added website hosting, search engine optimization and other services requested by clients. In 2009, Seidel launched CentralMO.com, a community resource website, through his second company Central Missouri Online LLC. Seidel’s ability to successfully run his businesses while pursuing a college education as well as his plans to take his businesses to the next level led to his selection as the National Association for the Self-Employed’s Future Entrepreneur for 2011.

2011 Future Entrepreneur Ben Seidel
Photo credit: Jeremy DeWeese

As the NASE Future Entrepreneur, Seidel receives a college scholarship of $16,000. He receives $12,000 this year with a promise of $4,000 more for his senior year as long as he maintains a high academic performance.

This fall, Seidel will be entering his junior year at the University of Missouri in Columbia, where he is majoring in economics and finance. He graduated from Christian Fellowship School with a 3.9 grade point average.

“Ben embodies the entrepreneurial spirit that is thriving in young people across America,” says NASE President Kristie L. Arslan. “The NASE is proud that this scholarship will help Ben achieve his dreams for the future.”

The NASE Future Entrepreneur Scholarship is the largest scholarship of its kind in the U.S. It is the flagship award of the NASE Scholarship Program, which has awarded over $1.9 million since its inception in 1989. In 2011, 10 students across the country received $4,000 scholarships for academic excellence.

For more information regarding the NASE Scholarship Program or Seidel, contact Kristin Oberlander at koberlander@naseadmin.org. High resolution photographs available.

Small Biz Reax To Credit Downgrade

NASE — Tuesday, 9 August, 2011 10:49:20 EST

For Immediate Release:

Contact:

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

While Economy Continues To Stumble, Payroll Tax Break Must Be Extended To Both Employers And Employees

Washington, D.C., August 9, 2011 – As the economy continues to decline amidst a historic downgrade of our AAA credit rating status, Kristie Arslan, President & CEO of the NASE, the leading advocate for our nation’s smallest businesses - the self-employed and micro-businesses - offered the following statement on the impact the downgrade will have on the small business community:

“Congress spent the summer playing debt-limit roulette and the country is struggling to make sense of the 11th hour outcome and what it means for the weak pulse of economic recovery. Credit rating giant Standards & Poor's did not hesitate to pass judgment on our political leaders and cite a lack of confidence in their ability to manage the deficit when it downgraded America's credit rating on Friday. It appears so far that the stock market is inclined to agree with S&P's assessment.

"Americans have good reason to be disgusted with Congress for risking our fragile recovery with political brinksmanship. Not only did the downgrade make our country's long-term debt a less attractive investment, but it will also likely raise interest rates for the 22 million self-employed entrepreneurs who are focused on getting their business - and, as a result, the economy - back on track. Increasing the cost of business and personal loans during difficult economic conditions is not a formula for growth.

"Even the smallest business has to manage its debt and balance its books to succeed. It shouldn't be too much to ask the world's largest economy to demonstrate the same level of fiscal responsibility.”

During a press conference on Monday, President Obama called on the U.S. Congress to extend the payroll tax break to encourage economic activity while our fiscal woes continue:

“Specifically, we should extend the payroll tax cut as soon as possible, so that workers have more money in their paychecks next year and businesses have more customers next year…In fact, if Congress fails to extend the payroll tax cut and the unemployment insurance benefits that I’ve called for, it could mean 1 million fewer jobs and half a percent less growth.”

Moody’s Analytics Chief Economist Mark Zandi signaled his support for extending the payroll tax break to both employees and employers to help boost the economy. On a recent CNN Situation Room, he commented:

“Well, I think there's some things we should do. Yes. For example, we have a payroll tax holiday, 2 percent this year. It expires at the end the year. Probably would make sense, given the context of these job numbers, to extend that [to employees] for another year. There's also some discussion about providing a payroll tax holiday for employers. That may also be something to consider.”

Kristie Arslan has argued that it is essential for the U.S. Congress to extend the payroll tax measure to both employers and employees.

CA Business Owner Receives $20,000 Award From NASE For Small-Business Excellence And Innovation

NASE — Monday, 18 July, 2011 09:00:00 EST

For Immediate Release:

Contact:

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

A dog chases a lure from Wicked Coursing (La Mesa, Calif.)

Washington, D.C., July 13, 2011 – Pat Bennett, owner of La Mesa, Calif.-based small business Wicked Coursing, recently received a $20,000 award from the National Association for the Self-Employed (NASE) in recognition of her excellent small-business practices and her success in doing less with more while simultaneously driving innovation.

Bennett founded Wicked Coursing, a lure coursing equipment manufacturer, in 2008. Wicked Coursing specializes in fun and easy-to-use equipment for lure coursing, a fast-paced chase sport for dogs. As a member of the NASE, Bennett applied for and received a $5,000 Growth Grant™ in December 2010 – part of $550,000 in grants given by the NASE since 2006 in response to members’ needs for access to capital.

According to an NASE Member survey, 77% of America’s micro-business owners do not believe there are enough funding resources available. A majority of respondents reported having to use personal savings to start their businesses and identified a need for funding from associations and nonprofit organizations.

Bennett used the original grant funds to launch Wicked Coursing’s latest and most accessible product, the ZippityDog™, for sale on her website. Some of the funds were also used for tooling for a critical component in the L’il Monster product, allowing Wicked Coursing to remain competitive but also grow and bring an entry-level product to market. Bennett had received orders for 20 ZippityDog machines shortly after launching the product on her website, and has already sold more of her products in the first two quarters of 2011 than in entire past years. Bennett’s ability to leverage a small amount of money to expand her business, as well as her drive to design, manufacture and bring multiple products to market on her own prompted the NASE to select her out of 16 other grant recipients for a further financial award of $20,000.

“Transforming just the glimmer of an idea to a reality with a full-blown product out on the market has been a big challenge,” Bennett said. “Without the grant there’s no way I would have been able to get a new product out to the market so quickly. We’re still growing and experiencing growing pains, and this award from the NASE is truly phenomenal for us and will help take our business to the next level.”

“Pat truly exemplifies today’s small business owner,” said NASE President Kristie Arslan. “So many business owners are having to do more with less, and we’re thrilled to recognize Pat’s hard work and invest in the future of Wicked Coursing.”

Arslan presented Bennett with a $20,000 check at a ceremony in front of her family, friends and Wicked’s employees and business associates. High resolution photographs are available. E-mail Kristofer.Eisenla@widmeyer.com.

Health Reform Law Will Require Self-Employed To Purchase Less Flexible, More Expensive Coverage

NASE — Wednesday, 13 July, 2011 10:07:32 EST

For Immediate Release:

Contact:

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

NASE Participates In Joint CAHC, U.S. Chamber Event On Controlling Health Costs

Washington, D.C., July 13, 2011 – In less than two and a half years, the vast majority of the self-employed and micro-businesses (fewer than ten employees) will be required by law to purchase health coverage that will likely be more expensive and less flexible than their current plan.

NASE Senior Health Policy Advisor Mike Beene said that the Affordable Care Act will cause ninety-five percent of the small business population to purchase such health coverage. Most importantly, he said, these businesses will not receive any financial assistance to help them pay for this mandated coverage. The costs of implementing these changes could discourage business growth including expansion and hiring, according to a study by the Coalition for Affordable Health Coverage (of which the NASE is a part).

Joel White, Executive Director of CAHC, remarked that “absent cost reduction strategies, if employees respond to the new federal mandate to purchase insurance by enrolling in their employer health plans, many workers will be too expensive to hire or retain. If employers respond by terminating or significantly curtailing those health plans, then federal spending projections could be low by a trillion dollars.”

A 2008 NASE study showed that only 18 percent of micro-businesses are currently providing health coverage for their workers, a significant decline from 46% in 2005. The key contributor to the drop in employer-based coverage in this micro-employer market was cost. This issue will be exacerbated with the new essential health benefits requirements, minimal cost relief and mandates in the health reform law.

“Many of the self-employed fall just short of qualifying standards for subsidies and tax credits in the health reform law,” commented Beene. “They make too much to qualify for premium assistance but too little to afford the comprehensive coverage they will be required by law to buy.”

For example, the Small Business Health Tax Credit excludes the self-employed, defined as a one-person business. The self-employed can qualify for premium subsidies for individuals and families once they take effect in 2014. To qualify, an individual must make below $43,340 and a family of four must have a household income below $88,200. The average household income for an NASE self-employed member is $62,500 for self and spouse which pushes them out of qualifying range for premium assistance.

To learn more, visit NASE’s SelfMade blog.

National Association For The Self-Employed (NASE) Names Kristie Arslan As New President & CEO

NASE — Monday, 11 July, 2011 16:44:16 EST

For Immediate Release:

Contact:

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

Continues As Spokeswoman For America’s Smallest Businesses

Washington, D.C., July 11, 2011 – John Wright, Chairman of the National Association for the Self-Employed (NASE)’s Board of Directors, announced today that Kristie Arslan, a ten-year veteran of the association, has assumed its leadership as President and CEO.

“In light of the challenges posed by the difficult economic climate and the evolving needs of American entrepreneurs, the NASE Board of Directors firmly believes that Kristie’s many years of service to the association, her leadership experience, and, most importantly, her vision will enhance NASE’s position as an essential partner for small business success,” said Wright. “With Kristie at the helm, we will work to make NASE sustainable and prosperous while continuing to provide our members and the nation’s self-employed with the support and guidance they need to achieve their American dream.”

“I am pleased to accept this challenge and look forward to continuing to speak truth to power as NASE helps steer our nation’s smallest businesses – the self-employed and micro-businesses – through tough economic times,” said Arslan. “Both internally here at the NASE and to the public and policymakers alike, my goal will be to ensure that our members and America’s self-employed receive the priority and support they need to start, manage and grow their businesses. ”

Kristie has been with NASE for the past 10 years, most recently as its Executive Director. With years of advocating on behalf of micro-businesses nationwide and her own personal experience working for her family’s small business, she provides critical insight into the issues affecting our nation’s entrepreneurs. She works closely with policymakers in Congress and the Administration to advocate for and speak on behalf of this important business demographic. Arslan has worked diligently to expand quality programming and educational resources for members within the organization while also increasing the visibility and influence of the NASE amongst key stakeholders, ensuring that the self-employed have a seat at the table in Washington D.C.

Currently, Arslan serves on the Board of Directors for the Coalition for Affordable Health Coverage and the Small Business Legislative Council. In addition, she is the Chair and founding member of the coalition supporting Equity for Our Nation’s Self-Employed. Arslan has been quoted and published in the New York Times, Washington Post, Wall Street Journal, Politico, Roll Call, The Hill and CQ Weekly, and has appeared on MSNBC, FOX, CNBC and C-SPAN. She is also an active blogger on Huffington Post.

“I am thrilled that Kristie Arslan has accepted the position of President and CEO of NASE,” said Scott Scribner, an NASE Board Member. “As a member of the NASE Board of Directors, I have observed with keen admiration Kristie's high energy, focused drive and personal commitment to championing the interests of our nation’s self-employed. Through Kristie's efforts, NASE is now the foremost organization representing micro-businesses and the self-employed in the United Sates. Kristie is truly a visionary for small business and I know of no one more capable of and passionate about leading NASE forward.”

Economist Mark Zandi Supports Payroll Tax Fairness

NASE — Monday, 11 July, 2011 10:42:15 EST

For Immediate Release:

Contact:

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

Policy Roadblocks Stiffen Economic Growth for Small Businesses

Washington, D.C. – As Congressional leaders race to address the debt-ceiling limit deadline, Moody’s Analytics Chief Economist Mark Zandi signaled his support for extending the payroll tax break to both employees and employers to help boost the economy in light of Friday’s disappointing unemployment report.

On CNN’s Situation Room, Mark Zandi commented:

“I could not agree more that extending the payroll tax break to employers will provide much needed relief to business owners, including those who operate as both employee and employer,” said Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE). “America’s smallest businesses – the self-employed and micro-businesses with fewer than 10 employees – are still struggling as the economy continues to falter. Policy makers on both sides of the aisle must put politics aside and use the payroll tax break to help the self-employed stimulate economic recovery.”

In addition, Kristie Arslan appeared on MSNBC’s Your Business this weekend to discuss economic optimism within the small business community. She argued that the self-employed community – which represents 78 percent of the small business sector – is optimistic about the economy, but not optimistic about our government’s ability to make tough decisions.

Click to watch Kristie discuss small business optimism

The self-employed contribute to the payroll tax through their self-employment taxes, paying the same amount as the combined employee/employer FICA contribution. The 2011 Obama tax cuts gave the self-employed a break on the employee half of their self-employment tax liability, but Congress will need to specifically include them in the current deal to ensure they get a break on their employer half, too. Arslan recently penned a Huffington Post piece on the benefits of a payroll tax break to the small business community.

Small Biz To Congress & Obama: Don't Forget The Self-Employed

NASE — Thursday, 7 July, 2011 15:35:20 EST

For Immediate Release:

Contact:

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

Any Debt-Ceiling Plan Should Ensure Fairness For All Small Businesses

Washington, D.C. – As President Obama meets with Congressional leaders to negotiate a potential debt-ceiling plan, Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE), released the following statement urging policymakers to keep the 78 percent of the small business community represented by the self-employed and micro-businesses in mind as they consider measures to give employers a break under the Federal Insurance Contributions Act (FICA).

"America's small businesses have to balance their books if they want to survive and they expect Congress to do the same," said Arslan. "Now that policymakers are negotiating a debt-ceiling deal that may include major tax reforms, including extending the payroll tax break, the majority of small businesses - self-employed and micro-businesses - expect Congress to ensure they aren't left out. Now is the time for lawmakers to put aside partisan politics and make the same kind of tough decisions that small business owners make every day.

"Rather than worrying about the political consequences of their actions, Congress and the Obama administration should ensure that any new tax relief does not exclude the self-employed. "

The self-employed contribute to their payroll taxes through the self-employment tax, paying the same amount as the combined employee/employer FICA contribution. The 2011 Obama tax cuts gave the self-employed a break on the employee half of their self-employment tax liability, but Congress will need to specifically include them in the current deal to ensure they get a break on their employer half, too. Arslan recently posted a Huffington Post piece on the payroll tax effect on the small business community.

Make The Payroll Tax Extension Fair For American Small Businesses

NASE — Thursday, 7 July, 2011 12:12:18 EST

For Immediate Release:

Contact:

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

For Individuals Who Are Both Employee And Employer, Uncertain News Lingers About Economic Future

Washington, D.C. – With debt-ceiling talks thrown into limbo, Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE), released the following statement as Congress considers measures to give employers a break under the Federal Insurance Contributions Act (FICA).

“Every employee working for wages or a salary in the U.S. is currently enjoying a one-year break on the amount they pay in payroll taxes in 2011, thanks to last year’s Obama tax cuts,” said Arslan. “Currently, lawmakers are working on a debt-ceiling deal that will include extending that tax break for employees and reduce the employers’ portion of the payroll tax by the same amount. This is great news for the small business community as long as individuals who are both employee and employer -- the nation’s 22 million self-employed – are not forgotten and will qualify for this tax relief."

“Self-employed businesses are doing their part to restore confidence in the struggling economy – they contribute nearly a trillion dollars each year to the economy and provide jobs for millions of workers. They are a key to our economic recovery. Congress needs to ensure that any new tax relief does not exclude the self-employed.”

Self-Employed to Lawmakers: Simplify The Tax Code

NASE — Thursday, 30 June, 2011 10:36:24 EST

For Immediate Release:

Contact:

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

Move Would Help Narrow $345 Billion Tax Gap, Decrease Taxpayer Headaches

Washington, D.C., June 30, 2011 – With spending up and revenues down, Senate lawmakers are looking to rein in the tax gap in order to bring down the national debt. The tax gap is the difference between what the IRS is owed versus what it collects each year and is currently estimated at $345 billion. The National Association for the Self-Employed (NASE) has been very active in suggesting ways that the gap might be closed, including small changes to current tax code and tax policy.

“Congress has been eager to pursue methods for reducing the tax gap, often at the expense of the self-employed and micro-businesses,” said NASE Executive Director Kristie Arslan. “Instead of further complicating the tax code with added regulatory burdens on small business and increasing enforcement activities, we suggest a more balanced approach that includes simplifying the tax code and enhancing taxpayer education.”

In the past, the federal government has targeted the self-employed (Schedule C filers) as part of their collection efforts. Recently, some agencies have publically acknowledged deficiencies in the tax system, including the IRS and the Government Accountability Office. Both offices have acknowledged that most noncompliance is the result of inadvertent errors and tax loopholes that provide opportunities for noncompliance. These agencies suggested what the NASE has said for years, that simplification of the tax code is a key component to narrowing the tax gap.

It is important to note that in review of current proposals to address the tax gap, we see that they solely focus on business to business transactions. Business to business transactions are already highly regulated and have substantial reporting requirements. A large area of potential non compliance and under reporting stems from business to consumer transactions. These dealings are currently not subject to reporting requirements and the creation of those requirements would likely be prohibitive to consumers and politically unappealing to legislators.

“In the fervent drive by Congress to recoup revenues for our fast depleting federal coffers, we must take the necessary steps to make certain the path we choose is balanced and effective, rather than detrimental. The NASE believes that the collective focus should be on supporting efforts for the survival, growth and innovation of small business as a foundation for long-term economic vitality,” remarked Arslan.

Read more here about the NASE’s position on specific tax gap proposals.

NASE Appears Before Congress To Give An Update On Small Biz Legislation

NASE — Thursday, 19 May, 2011 10:42:10 EST

For Immediate Release:

Contact:

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

Association Urges Two-Year Extension Of Self-Employment Tax Deduction For Sole Proprietors

Washington, D.C., May 19, 2011 - The National Association for the Self-Employed (NASE) testified before the Senate Committee on Small Business and Entrepreneurship today on how the effects of the Small Business Jobs Act, signed into law last fall, have been felt by the self-employed community.

During the hearing, titled "Small Business Recovery: Progress Report on Small Business Jobs Act of 2010 Implementation," NASE Executive Director Kristie Arslan argues that, despite accounting for 78 percent of all small businesses in the U.S. and collectively contributing about $1 trillion to the economy every year, this dynamic business demographic is too often misunderstood and underrepresented in the policy fashioned for small business.

"Our nation’s lawmakers and regulatory agencies commonly craft public policy geared toward the tiny sliver of the business demographic that is corporate America," Arslan said. "This narrow policy focus on a small percentage of businesses is why the Small Business Jobs Act was so crucial to our community."

The Small Business Jobs Act of 2010 included key provisions that benefited the vast majority of micro-businesses and provided some much needed bottomline tax savings to the self-employed, including the ability of sole proprietors to deduct their health insurance costs as a business expense. As a result of the one year allowable deduction, self-employed business owners have been positively affected by the ability to lower their tax liability on their returns, thereby saving money.

NASE Member Michael Kagan of Dover-Foxcroft, Maine, is owner of M. Kagan & Associates. He is a self-employed biotech consultant with over twenty-five years of experience as an engineering and manufacturing executive in both developing and bringing products to market. Mr. Kagan saved $1,400 in taxes due to the one-year tax deduction for health insurance costs in the Small Business Jobs Act, which he reinvested in office automation for his growing business.

Read the entire testimony of NASE Executive Director Kristie Arslan, including more detail on other aspects of the bill, below:

NASE Testimony- Small Business Jobs Act Implementation

Self-Employed To Congress: Address Deficit Now

NASE — Tuesday, 17 May, 2011 13:00:00 EST

For Immediate Release:

Contact:

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

Poll Finds Majority of Small Biz Owners Support Phasing Out Bush-Era Tax Cuts for Those Earning Over $250K To Help Curb Costs

Washington, D.C., May 17, 2011 - As the Federal government announces that it has reached the debt ceiling and has shuffled funds to meet the nation’s financial commitments, micro-businesses and the self-employed believe that spending for domestic programs, job creation initiatives, tax cuts and federal subsidies should be scaled back to address the deficit, according to a recent survey by the National Association for the Self-Employed (NASE).

Ninety-three percent of micro-businesses were either moderately or significantly concerned about the federal budget deficit. Seventy-four percent said that the federal budget deficit is a significant problem that needs to be addressed immediately. In a distant second place at 17 percent were respondents who indicated that the federal budget deficit is a significant problem that needs to be addressed after our economy fully recovers.

When asked the best way to reduce the budget deficit, 63 percent of micro-business owners indicated that cutting federal spending was their top priority. Thirty-two percent said both cutting spending and raising taxes were needed.

“Day in and day out, the self-employed are required to manage their budget and balance their books,” commented Kristie Arslan, executive director of the NASE. “It is irresponsible and puts our economy at future risk for our federal government not to do the same.”

The top three proposals for tackling the deficit that micro-business owners favored were:

Minimizing Social Security benefits for upper income recipients (65%);
Increasing the payroll tax cap on wages (at present individuals only pay Social Security taxes on wages up to $106,800) (60%);
Repealing and/or defunding the health care reform law (59%).

Contrary to the larger business population, the self-employed also favored (55%) phasing out the Bush tax cuts for those making over $250,000 as a way to curb costs.

Proposals that were opposed by the self-employed included an increase in the federal gas tax (77%), imposing a national sales tax (69%) and the elimination of all tax deductions and subsidies (61%).

“The self-employed and micro-business communities are willing to do their share to ensure that our federal budget deficit is addressed and our nation’s economy steadily grows,” remarked Arslan. “However, they are not as confident in the willingness of policymakers to step up and make the political sacrifices necessary to get the job done.”

Ninety-six percent of micro-business owners had little to no confidence that Congress would make the right decisions about addressing the federal budget deficit. When asked the same question about the Obama Administration, 82 percent had little to no confidence. Yet, overwhelmingly, self-employed respondents indicated they were very (24%) or somewhat willing (46%) to make sacrifices in the form of higher taxes or a cut in government benefits if it meant that our federal budget deficit would be addressed in the next five years.

Comments from business owners:

We can't run our businesses or our households the way the government runs it’s "house", and the vote last year was a dramatic call to get that house in order. Small business owners, housewives, people who live on a budget, and the average person on the street can all see the waste; why can't our policymakers?
We have a spending problem, not an income problem. We can only solve it by cutting spending.
This problem needs to be addressed NOW! It is a very complex issue and will take considerable time to arrive at viable solutions. I think that all areas of spending/revenue should be looked at for possible adjustments.
If we cut even 10% of the defense budget, we could pay for many of our other programs! Also, if we overhaul the WAY that health care is delivered, rather than how we pay for it, we could make it much, much cheaper.
The government needs to give up a significant amount of control they desire to have and let private enterprise have more freedom to do business without so many regulations. Small businesses would grow and hire more workers if big government would get out of the way.
I have paid into Social Security since 1962. It wasn't much then and I don't collect much now, but it's not an "entitlement" - it's MY MONEY.
Tax laws should be simplified by eliminating the provisions that allow special groups to receive tax breaks, which is the best way to increase revenues.

Full survey results are available online here.

Methodology:
Posted on the NASE Web site, the survey was available for members and other small business owners to take from May 3rd through May 11th . Over 500 self-employed and micro-business owners opted-in to the online survey and respondents were prohibited from taking it more than once.

NASE Offers Members New Cost Effective Payment Processing Benefit

NASE — Monday, 16 May, 2011 11:30:00 EST

For Immediate Release:

Contact:

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

First American Payment Systems Partners with the NASE

Washington, D.C., May 16, 2011 - The National Association for the Self-Employed (NASE) was founded in 1981 to provide day-to-day support, direct access to experts, educational resources and big business benefits to America’s smallest businesses. In an effort to continue its long tradition of providing members with quality, discounted benefits, the NASE is announcing a partnership with First American Payment Systems (FAPS) to offer yet another valuable benefit to help NASE’s member businesses stay competitive in today’s economy.

“The NASE is excited to partner with First American,” said NASE President Robert Hughes. “Essential to starting and managing a business in this age of technology is the ability for businesses to accept credit and debit cards. This exclusive benefit offering to NASE members by First American Payment Systems will help our self-employed members meet the needs of their customers. We know they will not find the quality of products, pricing and support anywhere else, and we are happy to be able to offer these advantages to the micro-business community.”

This new alliance will offer micro-businesses and the self-employed the opportunity to cost effectively accept credit cards and other electronic payments through the industry-leading processor. First American Payment Systems, L.P. is a rapidly growing payment processor that provides comprehensive electronic transaction processing services for more than 140,000 merchants throughout the United States.

“First American is eager to offer payment solutions to the NASE members, as we know both parties will benefit greatly,” said Rick Rizenbergs, Executive Vice President of Sales & Marketing at First American Payment Systems. “We are confident that the wide variety of merchants will be pleased at the products and support First American will provide.”

National Small Business Week: May 16th-20th

NASE — Monday, 16 May, 2011 11:09:53 EST

For Immediate Release:

Contact:

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

President Obama, NASE, SBA Honor Self-Employed And Micro-Businesses

Washington, D.C., May 16, 2011 - More than half of Americans either own or work for a small business, according to the Small Business Administration (SBA). The National Association for the Self-Employed (NASE) is teaming up with the SBA for the 10th year in a row to sponsor National Small Business Week 2011.

For nearly fifty years, one week has been set aside annually in order to honor the contributions of the nation’s small business community. The NASE works with the SBA to help increase access to capital and lends our support to federal initiatives that have proven helpful to micro-business growth.

As in the tradition of presidents past, President Barack Obama had this to say in the annual proclamation of National Small Business Week:

“Small businesses embody the promise of America: that if you have a good idea and are willing to work hard enough, you can succeed in our country. This week, we honor and celebrate the individuals whose inspiration and efforts keep America strong.”

"The economic importance of micro-businesses and the self-employed is worthy of acknowledgement every day,” said Robert Hughes, NASE president. “However, National Small Business Week offers a formal opportunity to join in recognizing the contribution of the largest business type in the nation – self-employed firms."

For information on Small Business Week, please visit http://nationalsmallbusinessweek.com/.

Congress Introduces Home Office Deduction Simplification Bill

NASE — Thursday, 12 May, 2011 16:55:20 EST

For Immediate Release:

Contact:

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

Bill Would Create Optional Standard Deduction

Washington, D.C., May 12, 2011 - The National Association for the Self-Employed (NASE) is thrilled to lend support to legislation introduced today by Congressmen Kurt Schrader (D-Ore.) and Ron Kind (D-Wis.) which would simplify taxes for millions of small business owners.

The Home Office Deduction Simplification Act, HR. 1827, would allow home-based businesses to take a standard $1,500 deduction for home office expenses. According to an NASE study, more than half of small businesses are based out of a home office.

"Too many home-based business owners who are eligible for the home office deduction elect not to take it because of the complexity of the form and calculations required,” said Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE). "This means valuable tax refund dollars that could be invested back into the business are left on the table each year. The creation of an optional standard deduction will go a long way in easing the minds of these cautious business owners. The fact that this bill ensures that the standard deduction will be adjusted for inflation also ensures that future businesses will be able to take advantage of this tax benefit for years to come.”

The NASE has strongly supported efforts in both the House and Senate to create an optional standard home office deduction. The Association supported a similar House bill which was introduced in Congress by Schrader and Kind in 2009.

NASE Launches New Scholarship Program For Entrepreneurs

NASE — Tuesday, 26 April, 2011 08:22:54 EST

For Immediate Release:

Contact:

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

Scholarships Available For Continuing Education And Training

Washington, D.C., April 26, 2011 - Since 1981, the National Association for the Self-Employed (NASE) has offered tools and resources to help America’s smallest businesses thrive. The NASE is continuing that legacy in its 30th year by launching a new scholarship program to assist entrepreneurs in obtaining the knowledge they need to succeed.

Through the NASE’s new Succeed Scholarship™ program, association members will be able to apply for scholarships of up to $4,000 to pursue continuing education or training. Scholarships can be used toward university or college courses, training courses for business licensing and certification, or participation in conferences and seminars that will encourage and support business survival and growth.

The new program will be a tool for both prospective entrepreneurs and existing business owners. The NASE recognizes that new entrepreneurs often require education and training before starting their business, and created the Succeed Scholarship™ program to assist those considering self-employment with gaining knowledge and skills.

The NASE is planning to award multiple Succeed Scholarships annually. Applications for Succeed Scholarships are available on the NASE’s website. Submission of all required application materials must be made by June 1, 2011, in order to be considered for a scholarship award in 2011.

“We know that expanding their skill sets and knowledge base is important to the self-employed community, however many business owners often don’t have the funds available to further their own education,” said Executive Director Kristie Arslan. “With the new Succeed Scholarship program, the NASE is offering our small-business members yet another tool to help them grow and improve their business.”

To learn more about the NASE’s new Succeed Scholarship™ program, please visit www.NASE.org.

1099 Additional Reporting Law Repealed By Pres. Obama

NASE — Friday, 15 April, 2011 09:59:28 EST

For Immediate Release:

Contact:

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

Washington, D.C., April 15, 2011 - The National Association for the Self-Employed (NASE) is thrilled that President Obama has signed a repeal of the additional reporting requirement regarding Form 1099 passed under the Affordable Care Act. NASE Executive Director Kristie Arslan had these comments after the repeal became law:

"America's smallest businesses - the self-employed and micro-businesses - will benefit the most from this repeal," said Arslan. "For over a year, small business organizations like the NASE have joined forces to raise awareness about the extent of damage this law would have on Main Street shops. We are pleased to see that the President has officially removed the burden from business owners' backs so, come 2012, they won't have to worry about the crushing amount of paperwork the law would have demanded."

SBA Administrator Karen Mills remarked on this historic occasion:

"The SBA and President Obama supported repealing this provision, which would have required businesses to send 1099 forms for all purchases of goods and services over $600 annually. With this bipartisan effort, we have removed a requirement that would have been an undue barrier to small business growth."

Last Minute Small Business Tax Tips From NASE National Tax Advisor, CPA

NASE — Wednesday, 13 April, 2011 09:58:16 EST

For Immediate Release:

Contact:

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

Entrepreneurs Expected To File Over 24 Million Returns In 2011

Washington, D.C., April 13, 2011 - Small-business owners who have put off doing their 2010 tax return so far this year have less than one week until Tax Day. The National Association for the Self-Employed (NASE) has one piece of advice – don’t panic.

“As long as you have all of your paperwork gathered in one place before starting and take the time to check your math, you’ll likely have no problem getting your return filed by April 18th,” said Keith Hall, NASE’s National Tax Advisor. “If you don’t think you’ll make it in time, you can get an automatic 6-month extension by filing Form 4868 and pay the tax you think is owed by April 18th.”

Hall offers these last minute tax tips for small-business owners who are starting to sweat:

Check for hidden deductions: If you work out of your home, your office may qualify for a deduction. Do you drive to the post office or a client site? Those miles may add up to a sizable deduction too.
Retirement Savings: Retirement savings, such as SEP contributions and IRA deposits, are deductible for last year’s tax return up until April 18, 2011. That means you can count money deposited into these accounts, up until the day you file your 2010 tax return. In the case of SEP contributions, those can even be made up until an extended due date, as late as October 15th.
Filing Date: If, despite all your rushing around, you still can't make the April deadline, relax. All tax filers can get an automatic 6-month extension by filing Form 4868 by April 18th, which you can download from the IRS Web site at http://www.irs.gov/. However, an extension of time to file is not an extension to pay. If you do not send the IRS what you think you owe, you'll be stuck with late fees and interest.
Proofread the form: Most of the mistakes on tax returns are simple addition and subtraction errors. Check your math. Then, check your math again.
Start thinking about next year: While micro-business owners may be tempted to finish their return and not think about taxes again until next year, now is a great time to reflect on how to reduce your 2011 tax liability. Consider deductions for a home office or employing your children; create a health reimbursement arrangement, which would enable the business to reimburse bona fide employees for all out of pocket medical expenses; reconsider the tax implications of incorporating your business; and research retirement plans designed specifically for the self-employed, including an IRA, SIMPLE, SEP, Single 401(k), and Keogh plan.
Look for help: Sole proprietors doing their own taxes can find help from a number of sources, including the NASE’s Tax Resource Center, where small-business owners can ask the NASE’s CPAs and tax professionals a question and hear back within a few business days. The IRS also offers a Web site (http://www.irs.gov/) and toll-free help line, 1-800-829-1040, for your tax questions.

NASE Statement On White House Small Biz Meeting

NASE — Friday, 8 April, 2011 16:25:37 EST

For Immediate Release:

Contact:

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

White House Prepares Small Business Groups For Shutdown that Could Have Severe Consequences For Small Biz Community And Economy

Washington, D.C., April 8, 2011 - Kristie Arslan, Executive Director of the NASE, released the following statement after a meeting with the White House on a Government shutdown’s effect on America’s small business community:

“While we recognize that both parties want to stick to their principles, at the end of the day a Government shutdown will have severe consequences on America’s small business community. With tax day approaching, a Government shutdown could not come at a worse time for small businesses – the self-employed and micro-business – who are counting on federal loans and the infusion of capital from their annual tax refund to reinvest in their businesses. With IRS Regional Offices and tax hotlines closed, they will also be left without any support to complete their returns."

“We are finally starting to see signs of recovery in the economy and a Government shutdown will impede this positive growth. Small businesses need to manage their budget every day. It’s time for policymakers to do the same,” said Arslan.

Kristie Arslan and other small business groups met with senior officials from the White House, the Office of Management and Budget, and the Small Business Administration to prepare for a potential Government shutdown and its effects on the small business community.

NASE: Gov't Shutdown Hurts Small Business

NASE — Thursday, 7 April, 2011 13:50:09 EST

For Immediate Release:

Contact:

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

Washington, D.C., April 7, 2011 - Kristie Arslan, Executive Director of the NASE, released the following statement as the threat of a Government shutdown looms and its potential effect on America’s small business community:

“A Government shutdown is a win for nobody – especially America’s small business community,” said Arslan. “The Government shutdown will send ripple effects throughout the economy. With small business loans and tax refunds stopped dead in their tracks, the small businesses that are so critical to our communities and our nation will be unable to grow or reinvest in their business. Our smallest businesses – the self-employed – will be impacted worse than most because many count on the infusion of capital they receive from their annual tax refund. I encourage President Obama and Congress to work together to ensure our Government stays open and a compromise on our federal budget is reached.”

President Obama’s recent remarks earlier in the week from Pennsylvania regarding a Government shutdown and its potential effect on small business:

“When government shuts down, it means that that small business owner who’s waiting to get a loan, suddenly nobody’s there to process it. He may not get that loan and that business may not open. And whoever he was planning to hire, suddenly he may not have that job that he was counting on.”

NASE Lauds Senate For 1099 Repeal

NASE — Tuesday, 5 April, 2011 15:56:11 EST

For Immediate Release:

Contact:

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

Washington, D.C., April 5, 2011 - Kristie Arslan, Executive Director of the NASE, released the following statement after the U.S. Senate’s vote to repeal the IRS tax reporting requirement:

“With the Senate’s action today, America’s smallest businesses – the self-employed and micro-businesses – have averted a harmful regulation that would have left them facing massive paperwork burdens,” said Arslan. “The expanded 1099 reporting requirement would have hurt small businesses that are already struggling to keep their doors open. The small business community encourages President Obama to sign this important piece of legislation into law and also to remember that there are additional small policy fixes that will further help small businesses stay competitive, such as making the temporary self-employed tax deduction permanent to level the playing field with their larger counterparts.”

In addition to the IRS 1099 issue, NASE and other small business advocates have been fighting to make this year’s temporary self-employed health insurance tax deduction permanent. While every other type of business, including corporations and partnerships, can write off the cost of health coverage as a business expense, our nation’s smallest businesses were only granted a one-year opportunity. Kristie argues this point in her latest Huffington Post blog piece. A recent column by USA TODAY highlights the benefits to small businesses.

Self-Employed: How To Survive An Audit

NASE — Wednesday, 23 March, 2011 10:19:58 EST

For Immediate Release:

Contact:

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

Math Errors Are Among The Most Common Mistakes, Says NASE

Washington, D.C., March 23, 2011 - The IRS expects 145 million tax returns to be filed for the 2010 tax year and, of those, one in six will be self-employed Schedule C filers. A small percentage of those self-employed businesses will be subject to an audit each year.

The NASE knows that many self-employed business owners meet their tax obligations fully, so the audit process need not be feared. The IRS can review tax returns for up to three years, so now is the time to make sure all of the necessary paperwork and documentation is stored with the 2010 tax return.

“As long as taxpayers dot their I’s and cross their T’s when preparing their return, then there is no reason to worry about an audit,” says NASE National Tax Advisor Keith Hall. “It’s possible that you might even get a refund.”

The audit selection process can be a complicated one. Here are a few tips to keep in mind:

Math Errors – This is the most common reason for an audit. Check and re-check the return to make sure all numbers, dates and Social Security numbers are included. Using tax preparation software can help eliminate these errors.
Prior Audits – Prior audits and matching tax indicators (e.g. you have the same small business and same typical deductions), might increase the likelihood of being audited again. This is particularly true if last year’s audit included an additional tax assessment.
Statistical Sampling – This accounts for most of the returns that are selected for an audit. The more complicated the tax return, the higher the chance of audit selection.

The NASE offers numerous tax tools and other tips to help you get through current and future tax seasons. For help organizing your taxes, visit the NASE's Tax Resource Center. NASE members can ask our Tax Experts their questions.

Small Changes Still Needed To Nation's Health Care Law

NASE — Tuesday, 22 March, 2011 16:38:12 EST

For Immediate Release:

Contact:

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

On One-Year Anniversary Of Health Care Reform Law, Small Businesses Still Find Themselves Unable To Afford Coverage

Washington, D.C., March 22, 2011 - Kristie Arslan, Executive Director of the NASE, released the following statement on the one-year anniversary of the Affordable Care Act:

“Health care reform has been aggressively promoted under the mantra of ‘affordable’ for the past year,” said Arslan. “Unfortunately, affordable is relative and coverage is still out of reach for many of the nation’s 23 million self-employed business owners. On the anniversary of the Affordable Care Act, the nation’s smallest businesses are counting on Congress to finalize a repeal of the onerous and costly IRS Form 1099 reporting requirement that was contained in the law as well as make the temporary self-employed heath insurance tax deduction permanent. While these actions won’t help every small business owner afford coverage, it’s a step in the right direction.”

NASE and other small business advocates are fighting to make this year’s temporary self-employed health insurance tax deduction permanent. While every other type of business, including corporations and partnerships, can write off the cost of health coverage as a business expense, our nation’s smallest businesses were only granted a one-year opportunity. Kristie argues this point in her latest Huffington Post blog piece.

Small Biz RX To Secretary Sebelius' Comments At Senate Hearing

NASE — Thursday, 17 March, 2011 10:06:12 EST

For Immediate Release:

Contact:

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

Secretary Touts Help For Small Businesses, But Fails To Address The Rising Health Care Costs For The Self-Employed And Micro-Businesses

Washington, D.C., March 17, 2011 - Kristie Arslan, Executive Director of the NASE, released the following statement in response to U.S. Health and Human Services Secretary Kathleen Sebelius’ testimony before the U.S. Senate Finance Committee’s Hearing, “Health Reform: Lessons Learned During the First Year.” During the hearing, Secretary Sebelius touted how the Affordable Care Act is helping our nation’s small businesses with their health care costs, yet fails to recognize the ballooning costs to our nation’s smallest businesses – the self employed and micro-businesses.

“Secretary Sebelius touts her agency’s efforts to notify four million small businesses that they may be eligible for a tax cut to help provide coverage to employees,” said Arslan. “This sounds like good news – except that there are 23 million self employed and micro-business owners who are struggling to afford coverage for themselves and their families right now, let alone anyone else they employ. Health insurance is a luxury item for these business owners and many are going without so they can focus on higher priority needs, like groceries and the mortgage. Four million small businesses is a start, but until policymakers focus on the majority of the small business demographic – the self employed and micro-businesses – they are not doing enough to get our economy back on track.”

During Secretary Sebelius’ testimony, she said:

“More than 4 million small businesses have been notified that they may be eligible for a tax cut to help them provide coverage for their workers – a benefit that’s already making a difference, with the number of small firms offering health benefits rising for the first time in a decade. By slowing the growth of health care costs, the new law will free businesses to invest in their own growth and create new jobs.”

NASE Launches New Membership Offering And Redesigned Website For Small Business

NASE — Wednesday, 9 March, 2011 14:53:02 EST

For Immediate Release:

Contact:

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

Association Touts Exciting Changes To Encourage Successful Entrepreneurship In Today’s Tough Economy

Washington, D.C., March 9, 2011 – In today’s difficult economy, the National Association for the Self-Employed (NASE), the nation’s leading nonprofit association representing America’s smallest businesses, is doing its part to support entrepreneurship with the launch of a new annual membership and redesigned website (www.NASE.org), offering a more affordable and comprehensive suite of resources and services.

“The NASE is constantly looking for ways we can become a more vibrant partner with America’s self-employed,” said NASE President Robert Hughes. “Our focus has been re-aligned to support those examining self-employment as a viable career option as well as current business owners who want to continue to grow and create jobs in this country.”

The NASE has utilized the knowledge gained by working for over 30 years with small businesses to transform its membership offering and the NASE.org online user experience to focus on three key areas: educational resources, business benefits and a seat at the table for the self employed in Washington D.C.

The NASE recognizes that most individuals who work for themselves are not legal experts, nor do they have an HR department or CPAs on staff. As their partner, the NASE’s new annual membership provides access to key experts and informational resources that can help prospective and existing entrepreneurs start, manage and grow their business.

The redesigned website allows entrepreneurs to find the timely and accurate information they need, with ease. Educational material is offered in a variety of formats such as articles, podcasts and webinars. Additionally, the new annual membership offers individuals access to an array of business benefits providing a one-stop shop for business owners.

With issues like the economy, health care and taxes being taken up by our policymakers on Capitol Hill, the NASE also provides the self-employed with a seat at the table. The Association tirelessly works to ensure that the over 21 million self-employed Americans are represented and lawmakers focus on helping, not hurting the bottom line of this important sector of our economy.

“Policy, not politics, is what drives the NASE,” commented Executive Director Kristie Arslan. “Regardless of whether you are a business of one or have 100 employees, your contributions to our economy matter and your voice should be heard. Being a member of the NASE allows you the opportunity to tell your story.”

To learn more about the NASE’s new annual membership and to explore our resources, please visit www.NASE.org.

Briefing: Self-Employment Health Insurance Tax Deduction

NASE — Tuesday, 8 March, 2011 15:03:00 EST

FOR PLANNING PURPOSES
March 9, 2011

**MEDIA ADVISORY**

WASHINGTON – Please join Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE), for a conference call briefing on the temporary self-employed health insurance tax deduction available to individuals who pay self-employment taxes on their 2010 tax returns. Kristie will also discuss recent efforts to make this tax deduction permanent and to redress an historic unfairness in the tax code’s treatment of self-employed and micro-business owners.

Conference Call Briefing

Thursday, March 17th
2:00PM Eastern Standard Time
Call In Number: 1-866-628-8620
Participant Passcode: 324784

Please see the below Huffington Post blog piece by Kristie about the temporary tax deduction and the many benefits of making the deduction permanent.

It is a sad, but true fact: health insurance is a luxury item for many small business owners, purchased when times are good and forsaken when times are lean. This is especially true for self-employed and micro-businesses -- our nation's smallest businesses. Thanks to a minor quirk in the tax code that has a major effect on their bottom lines, the self-employed are the only business entities that receive no tax benefit for purchasing coverage. Every other type of business, like corporations and partnerships, can write off the cost of health insurance as a business expense.

Congress delivered a temporary reprieve of this historic oversight in the form of the self-employed health care tax deduction included in the passage of last fall's Small Business Jobs Act. For the 2010 tax year, self-employed business owners are able to deduct the cost of their health care coverage, which will put about 15% of their premium back in their pocket. For the average self-employed business owner, the temporary deduction amounts to about $2,000.

Click here to continue reading…

With tax day around the corner, Kristie would enjoy the opportunity to brief you on this important tax deduction for our nation’s smallest businesses. If you are interested in joining the conference call, please RSVP to this email, Kristofer.eisenla@widmeyer.com.

NASE Praises House Repeal of 1099 Provision

NASE — Friday, 4 March, 2011 09:00:00 EST

Washington, D.C., March 4, 2011 - Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE), released the following statement after the House passed a repeal of the onerous 1099 legislation:

“The NASE is pleased to see that the House has supported the permanent removal of this law from the backs of the self-employed. Not only does the increased reporting discriminate against small enterprises who do not have the luxury of having an accounting department on staff, it causes needless double-reporting of business credit card transactions for goods and services. The Senate needs to act now to do away with this troublesome law once and for all.”

House Introduces Tax Savings Legislation For The Self Employed

NASE — Thursday, 3 March, 2011 13:57:39 EST

For Immediate Release:

Contact:

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

Bill Would Allow Sole Proprietors, For The First Time, To Deduct Health Insurance Premiums As A Business Expense

Washington, D.C., March 3, 2011 – A longtime priority of the National Association for the Self-Employed (NASE) has been introduced in the House. U.S. Reps. Wally Herger (R-Calif.) and Ron Kind (D-Wis.) have re-introduced legislation to address an unfair tax on health insurance premiums for the self-employed. Under the current tax code, sole proprietors are the only business entity that cannot deduct their health insurance premiums for self employment tax (payroll tax) purposes. Last September, Congress passed legislation allowing the self-employed to fully deduct their health coverage costs from their 2010 taxes.

This provides an important tax break for the over 23 million self-employed Americans that represent 78 percent of all small businesses in the U.S. This deduction only applies to the 2010 tax year and provides a 15% lower tax liability, resulting in a larger refund. The Herger-Kind legislation would permanently eliminate this inequality in our tax code.

NASE Executive Director Kristie Arslan added, "The temporary one-year tax deduction included in the Small Business Jobs and Credit Act of 2010 is a big "win" for the self-employed community. However, the tax deduction needs to be permanent in order to have the most impact. For far too long, the self-employed have not received the same tax treatment as big business in regards to health care costs. This bill makes a simple change in the tax code that will make a big difference to millions of entrepreneurs each year."

Read here about how the temporary SE tax deduction on 2010 returns applies to you.

Tax Time: Deducting The Business Use Of Your Automobile

NASE — Wednesday, 2 March, 2011 12:57:27 EST

For Immediate Release:

Contact:

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

Small Biz Owners Often Overlook This Important Deduction
Washington, D.C., March 2, 2011 – Business expenses come with the territory when you are an entrepreneur. Some expenses, however, can be easy to miss come tax time because they do not show up in your business checkbook. Use of your car for driving to client meetings, the office supply store, the post office and more are deductible expenses because you are using your vehicle for business purposes.

Here are a few tips from the National Association for the Self-Employed (NASE) to remember in regard to deducting expenses for business use of your automobile:

Standard Mileage Rate (50 cents per business mile driven in 2010, 51 cents for 2011)
Actual Expense Method (calculate total costs of maintaining and driving your car, then multiply by the percentage of business miles to total miles driven in that car)

"The main thing the IRS will want to see in supporting this deduction is your mileage log," says NASE National Tax Advisor Keith Hall. "You must keep track of the miles you drive for business, whether it’s on your computer or handwritten in a notebook."

Click here for more details on TripAlly. Also check out IRS Publication 463, Travel, Entertainment, Gift and Car Expenses for more detail.

Small Business Worker Classification: Independent Contractor Or Employee?

NASE — Thursday, 10 February, 2011 14:35:00 EST

For Immediate Release:

Contact:

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

IRS Sets Important Distinctions Come Tax Time

Washington, D.C., February 10, 2011 – The self-employed contribute a mighty portion to the U.S. economy – nearly $1 trillion. There is no question that they are helping create jobs by growing and hiring new workers. The question is, by hiring additional workers, are micro-businesses (those with 10 or fewer employees) actually creating more paperwork for themselves?

“Determining whether a new worker is an employee or an independent contractor can be tough,” says Keith Hall, National Tax Advisor for the National Association for the Self-Employed (NASE). “Keep in mind that you can’t just choose which one is easiest. It really depends on who calls the shots day to day.”

As a firm grows, many business owners decide to begin using other workers to help manage the needs of new and existing clients. At that point, the business owner must determine the tax classification for the new position he or she just created. Many small businesses think that this distinction is a matter of choice. Not so, says the Internal Revenue Service (IRS).

It is extremely important to know the classification of your workers and to make sure you pay them correctly and then report those payments correctly to the IRS at the end of the year. The IRS actually uses a multi-step checklist to evaluate whether a person is an employee or an independent contractor. If you are unsure whether to classify your newest worker as an employee or an independent contractor, here is a quick way to sort them out:

If you control the Who, Where, When and How the work is done, then they are probably an employee. This means that you, as the business owner, must file a Form W2, withhold income and payroll tax, and potentially contribute to their retirement plans.
If the worker controls their own work product and even has other customers besides you, then they are most likely independent contractors. Payments to independent contractors are reported on IRS Form 1099, and the independent contractors are responsible for their taxes and their own tax forms, including Schedule C, Profit or Loss from Business and Schedule SE, Self Employment Tax.

“It’s very important to get the decision right, because the IRS can certainly come in later and second guess, which could potentially lead to penalties and interest if taxes were underpaid,” adds Hall.

This is certainly a complicated issue and a very important one as small businesses continue to create jobs. For more details on how to classify a worker, visit the IRS online [www.IRS.gov] where you can download Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.

The National Association for the Self-Employed (NASE) also offers micro-business tax advice from certified public accountants through TaxTalk. Submit your question and receive an answer from qualified CPAs at the NASE’s Tax Resource Center.

Self-Employed: Take An SE Tax Deduction For Health Insurance Costs

NASE — Thursday, 3 February, 2011 10:20:00 EST

For Immediate Release:

Contact:

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

Temporary Tax Provision For 2010 Creates Level Playing Field For Micro-Businesses

Washington, D.C., February 3, 2011 – For the 2010 tax year, self-employed business owners can have one more deduction to claim – their health insurance costs. The Small Business Jobs and Credit Act, passed last fall, provides an important tax break for the over 23 million self-employed Americans by allowing them to deduct health insurance costs in determining Self Employment Tax. These businesses represent 78 percent of all small businesses in the U.S., according to the National Association for the Self-Employed (NASE).

To qualify for this deduction, self-employed business owners must meet the following three criteria:

File a Schedule C or Schedule E with net earnings from self employment
File a Schedule SE and pay self employment tax
Pay health insurance costs during the year

“This is a major step forward in addressing the single most important factor facing the self employed business owner when it comes to health insurance, and that is affordability,” says Keith Hall, the NASE’s National Tax Advisor. “By allowing health insurance costs to be included as a deduction in the calculation for Self Employment tax, most small-business owners can save as much as 15% on the cost of health coverage right off the top.”

To calculate estimated savings, simply add up total 2010 health insurance costs and multiply by 15 percent. If, however, income is above the maximum wage limit subject to self employment tax, currently $106,800, then the total percentage savings will be a little different.

Until now, the self-employed couldn’t get the same tax benefit for health insurance expenses that other companies enjoy. Now, the self-employed can take a one-year tax deduction for these costs in determining their payroll tax (self-employment tax). Unfortunately, this deduction is only available for the 2010 tax year.

“We should all take the time to let our Congressional leaders know that this provision should be extended beyond just this year,” advised Hall. “Other entity forms such as corporations and big businesses get this same type of tax benefit every year, and it is only fair that small-business owners should have the same opportunity.”

Visit www.NASE.org to find out how to contact your representatives in Washington, D.C. and let them know that you support this provision.

Small Biz Is Critical To Boosting The Economy

NASE — Wednesday, 26 January, 2011 10:11:01 EST

For Immediate Release:

Contact:

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

Washington, D.C., January 26, 2011 - Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE), released the following statement in reaction to President Barack Obama’s State of the Union Address:

“Enhancing competitiveness and expanding employment are solid economic goals. But policies to get us there have to take into account the demographics of our nation’s businesses. The vast majority of American businesses are very small and have little in common with the small club of corporate giants. Getting our economy back on track has to focus on helping small businesses stay afloat and thrive."

“One way we can help small businesses – such as the self-employed and micro-businesses – become more competitive and put them in a hiring mode is to improve regulatory efficiency, a goal recently promoted by the President in the pages of the Wall Street Journal. And there are plenty of opportunities for that rhetorical rubber to meet the road. For example, a largely unnoticed provision in the health care reform bill requiring small business owners to submit IRS Form 1099 for every purchase of goods and services over $600, will increase the time and money spent on tax preparation for three out of four business owners. This is a burdensome regulation that prevents small businesses from thriving."

“President Obama and Congressional leaders worked in a common sense way for our small business community by supporting critical tax relief measures in the Small Business Jobs Act and extending the Bush-era tax cuts. NASE encourages our policymakers to continue by giving the small business community the tools to put our economy back on the fast track.”

President Obama’s reference to improving the health care reform law:

“Now, I’ve heard rumors that a few of you have some concerns about the new health care law. So let me be the first to say that anything can be improved. If you have ideas about how to improve this law by making care better or more affordable, I am eager to work with you. We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses.”

2010 Micro-Business Year In Review

NASE — Thursday, 16 December, 2010 14:18:00 EST

For Immediate Release:

Contact:

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

Micro-Businesses Participated NASE Grant Program, Received Health Tax Deduction

Washington, D.C., December 16, 2010 – The self-employed and micro-business owners continued to plan for business, educational and personal success in 2010. They also became crusaders for legislation for America’s smallest businesses 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 $20,000 Achievement Award to one member in recognition of his excellent small-business practices and his contribution to local youth, health and community development. The NASE’s grant program has awarded over $500,000 in grants since 2006.

The NASE also celebrated over two decades of helping members send their dependents to college through the NASE Scholarship Program. In 2010, the program helped 20 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 $1.9 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. To that end, a group of NASE Members attended a live taping of a town hall-style meeting with President Barack Obama on MSNBC during the summer. The NASE launched a public awareness campaign, aimed at policymakers, to combat the stereotype that the nation’s smallest businesses do not make serious contributions to the economy. In fact, the self-employed represent three-quarters of the nation’s small businesses and contribute over $1 trillion to the economy.

The Association remains in contact with members of Congress to offer information on helping micro-business. In 2010, the NASE spoke up on a number of issues, including worker classification definitions, harmful increased reporting requirements passed under the health care law, support for the creation of a standard home office deduction and support for a small business bill with tax incentives and increased funding for small business programs.

This year, amid the conversations by lawmakers on how to craft health care policy and create jobs, the micro-business community received a nod from the White House and Congress when the Small Business Jobs and Credit Act (H.R. 5297) became law in September. The law included a monumentally important deduction for sole proprietors on their health care costs for 2010. In past, sole proprietorships were the only business entity that were unable to deduct their health insurance premiums as a business expense. Though the NASE would have preferred that the deduction become permanent, the law’s one-year deduction is an important step in the fight. The law also included an increase in the deduction for new businesses, from $5,000 to $10,000.

The NASE stayed visible in efforts to address a harmful provision set to affect the self-employed in 2012. Passed under the health care law was an increased reporting requirement for businesses involving the IRS Form 1099. The provision calls for business owners to fill out a 1099 for every transaction over $600 to a service provider or vendor. The Form 1099 reporting system has historically been utilized for payments made to independent contractors. Since forty percent of NASE members perform their business’s accounting functions on their own, they expect the new law to increase the amount of paperwork they do each year by over one-thousand percent. This issue, which had bi-partisan legislation introduced in Congress to repeal this harmful provision in 2010, will remain a top association priority in 2011.

Following the success of the NASE’s Tax Seminar program in 2008 and 2009, in March the NASE’s National Tax Advisor Keith Hall held fourteen seminars across the country to share micro-business tax strategies and to bring together fellow NASE Members.

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 Applauds President And Congressional Leaders For Bush-Era Tax Compromise

NASE — Tuesday, 7 December, 2010 10:28:34 EST

For Immediate Release:

Contact:

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

Washington, D.C., December 7, 2010 - Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE), released the following statement on the compromise between President Obama and Congressional leaders on extending the Bush-era tax cuts, leading the way for economic relief for the small business community and the middle-class:

“The compromise between President Bush and Congressional leaders on extending the Bush-era tax cuts is a win for the small business community,” said Arslan. “During this time of economic uncertainty, small business owners need this economic relief for their very survival. Over 23 million individual small business owners will now be able to keep their businesses on a path to recovery without the threat of closing their doors due to a big tax bill in April. NASE applauds President Obama and Congressional leaders for working in a bipartisan way for America’s middle-class.”

NASE Calls On Congress To Extend Bush Tax Cuts For Small Business Owners

Kristin Oberlander — Thursday, 2 December, 2010 16:00:00 EST

For Immediate Release:

Contact:

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

Washington, D.C., December 2, 2010 - Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE), released the following statement after the U.S. House of Representatives passed an extension of the Bush-era tax cuts for the middle-class:

“This is the wrong time to raise taxes for small businesses. Over 23 million individual small business owners across the country are counting on Congress to stand up for the American middle-class by extending the Bush tax cuts,” said Arslan. “The time for political bickering is over – now is the time to provide relief to millions of American middle-class families who desperately need it during this economic downturn."

“Self-employed business owners contribute nearly a trillion dollars to our economy and they cannot afford a tax hike, which for the average small business will amount to more than $2,000 a year. This may be small change to a large corporation, but to a small business owner it could purchase health insurance, pay for equipment, or advertise their business. We support President Obama’s commitment to middle-class small business owners and call on Congress to work in a bipartisan way to extend these vital tax cuts.”

Quotes from President Obama on November 3, 2010:

“With respect to the [expiring Bush-era] tax cut issue, my goal is to make sure that we don’t have a huge spike in taxes for middle-class families. Not only would that be a terrible burden on families who are already going through tough times, it would be bad for our economy. It is very important that we’re not taking a whole bunch of money out of the system from people who are most likely to spend that money on goods, services, groceries, buying a new winter coat for the kids.”
…
“So my goal is to sit down with Speaker-elect Boehner and Mitch McConnell and Harry and Nancy sometime in the next few weeks and see where we can move forward in a way that, first of all, does no harm; that extends those tax cuts that are very important for middle-class families; also extends those provisions that are important to encourage businesses to invest, and provide businesses some certainty over the next year or two.”

NASE Applauds Supportive Comments By President On Small Biz

NASE — Wednesday, 3 November, 2010 18:00:00 EST

For Immediate Release:

Contact:

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

Washington, D.C., November 3, 2010 – Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE), released the following statement after the President delivered supportive comments on small business priorities at a press conference earlier today:

“NASE is encouraged that President Obama is focused on two priority policy issues that need to be addressed to help the nation’s 23 million self-employed and micro-business owners drive economic growth. The IRS Form 1099 provisions passed under the health care law would increase paperwork for a self-employed business owner by more than a thousand percent, a burden that could affect a business’ very survival. He’s right to suggest that it’s “counterproductive.” He also pledged to extend tax cuts to help middle-class families, many of whom are supported by a self-employed business owner. NASE looks forward to working with the Administration and Congress to get these priorities in place for our small businesses.”

Relevant quotes from the President’s remarks:

I know one of the things that’s come up is that the 1099 provision in the health care bill appears to be too burdensome for small businesses. It just involves too much paperwork, too much filing. It’s probably counterproductive. It was designed to make sure that revenue was raised to help pay for some of the other provisions, but if it ends up just being so much trouble that small businesses find it difficult to manage, that's something that we should take a look at.
…
With respect to the [expiring Bush-era] tax cut issue, my goal is to make sure that we don’t have a huge spike in taxes for middle-class families. Not only would that be a terrible burden on families who are already going through tough times, it would be bad for our economy. It is very important that we’re not taking a whole bunch of money out of the system from people who are most likely to spend that money on goods, services, groceries, buying a new winter coat for the kids.
…
So my goal is to sit down with Speaker-elect Boehner and Mitch McConnell and Harry and Nancy sometime in the next few weeks and see where we can move forward in a way that, first of all, does no harm; that extends those tax cuts that are very important for middle-class families; also extends those provisions that are important to encourage businesses to invest, and provide businesses some certainty over the next year or two.

Small Business Jobs & Credit Act Signed Into Law

NASE — Tuesday, 28 September, 2010 12:08:48 EST

For Immediate Release:

Contact:

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

NASE Participates In Signing Ceremony With President Obama

Washington, D.C., September 28, 2010 – Yesterday, President Barack Obama signed into law legislation that will allow the self-employed to deduct their health insurance costs as a business expense for payroll tax purposes. Though only applicable to 2010 tax returns, the passage of this proponent is a key “foot in the door” for future battles on health costs and the self-employed, according to the National Association for the Self-Employed (NASE).

Before signing the bill, President Barack Obama offered a few remarks:

Now this is important because small businesses produce most of the new jobs in this country. They are the anchors of our Main Streets. They are part of the promise of America – the idea that if you’ve got a dream and you’re willing to work hard, you can succeed. That’s what leads a worker to leave a job to become her own boss. That’s what propels a basement inventor to sell a new product – or an amateur chef to open a restaurant. It’s this promise that has drawn millions to our shores and made our economy the envy of the world.

“The NASE lauds the Administration and Congress for passing this small business legislation into law,” remarked NASE Executive Director Kristie Arslan. “It is imperative that lawmakers continue to focus on small business policy that helps the majority of the business community – the self-employed.”

The one-year tax deduction for sole proprietors on health care costs for payroll tax purposes on their 2010 tax returns is expected to save self-employed business owners approximately $456 to $968 in taxes next year. This is a significant bottom-line cost savings in this difficult economic climate.

Additionally, the temporary provision will provide a one-year level playing field for America’s smallest businesses that have not benefited from the same tax treatment of health care costs that all other businesses have enjoyed.

To learn more about the qualifications and requirements to benefit from this one-year tax deduction, please visit NASE In Action for an informational sheet on this important provision.

The NASE, in coordination with the coalition supporting Equity for Our Nation’s Self-Employed, will continue efforts to make this tax benefit permanent for self-employed Americans.

Small Business Jobs & Credit Act To Be Signed Into Law By President Obama

NASE — Thursday, 23 September, 2010 16:30:51 EST

For Immediate Release:

Contact:

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

Self-Employed To Receive Health Care Cost Assistance, Access To Capital, Other Tax Incentives

Washington, D.C., September 23, 2010 – The National Association for the Self-Employed applauds the U.S. House of Representatives for its quick action regarding approval of the Small Business Jobs and Credit Act. The legislation provides a key health tax deduction for the self-employed, though only for one year, that the health care bill failed to offer.

“Finally Congress has provided some tax relief that America’s smallest businesses will be able to see benefit their bottom line. The NASE is thrilled that a longtime priority for the self-employed has been realized with passage of this legislation, even if it is only temporary relief,” remarked NASE Executive Director Kristie Arslan. “A top focus from here will be to make permanent the ability of sole proprietors to deduct their health costs as a business expense, as all other businesses do.”

Key provisions in the bill that will assist the self-employed include:

A one-year tax deduction for sole proprietors on health care costs for payroll tax purposes on their 2010 tax returns
A temporary increase in the maximum deduction for business start-up expenditures in 2010 and 2011 from $5,000 to $10,000, subject to a $60K threshold
Extension of the Sec. 179 expensing provision that allows small businesses to immediately expense up to $500,000 (up from $250,000) for tangible personal property and up to $250,000 for improvements to leasehold property and retail property
Creation of a $30 billion Small Business Lending Fund to encourage small local banks and credit unions to increase loans to small businesses

NASE Urges House To Take Quick Action For America's Smallest Businesses

NASE — Wednesday, 22 September, 2010 14:19:02 EST

For Immediate Release:

Contact:

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

Washington, D.C., September 22, 2010 – As the House returns to take up the Small Business Jobs Act this week, Kristie Arslan, Executive Director of the Legislative Offices of the National Association for the Self-Employed (NASE), released the following statement urging quick action:

“The House needs to act now to help Main Street,” said Kristie Arslan, executive director of the NASE. “One of the provisions in the Small Business Jobs Act addresses a key component for the self-employed, which the health care reform law failed to do. It will finally allow the self-employed, though only for one year, to write off their health costs as a business expense, just like big business can.”

Earlier this week, Roll Call published an op-ed by Kristie Arslan, where she urged the House to take swift action in sending the legislation to the President. The Small Business Jobs Act will provide much needed relief for many small businesses, including the three American’s below:

Kimberly Gladis
CorePerformX Advisory Group
Gaithersburg, MD

“As I contemplated leaving a 15 year career in the corporate environment, one of the scariest and riskiest barriers to my departure was securing individual health care coverage. As a single mother of a 4 year old, I was concerned with finding a good quality plan that was also affordable. As a newly-formed LLC, I am very excited to see Congress focusing on small business, which I believe is the heart of the American economy. I believe that if Congress was able to lower the small business health care hurdle, we could anticipate more small business start ups in the future.”

Alex Echols
Terra Altus, a conservation consulting firm
Alexandria, VA

“It is time we put the tax treatment of health insurance for the self employed on equal footing with the tax treatment of health insurance for those employed by others. Why do we penalize those willing to take a risk and create a new business and jobs? Why should their families be put at risk? The "level playing field" is one of the clichés of this town – let’s level the playing field for those creating jobs and paying the full insurance costs out of their own pocket.”

Omar Uddin
UVision Consulting, Business Technology Consultancy
Ashburn, VA
http://www.uvisionconsulting.com

“Having been a sole proprietor and entrepreneur over the past 10 years, the Small Business Jobs and Credit Act and other legislation of its kind focusing on the challenges existing for entrepreneurs and small business owners is what America needs to bounce back from a potential double dip recession. A sole proprietor's health costs should definitely be deductible and this act, if passed, will surely impact the way I and other business owners grow our business, especially with the ever rising cost of health care across our country.”

NASE: Lawmakers Finally Act to Help Main Street

NASE — Thursday, 16 September, 2010 17:00:22 EST

For Immediate Release:

Contact:

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

Self-Employed to Receive Much Needed Tax Relief from Small Business Jobs and Credit Act

Washington, D.C., September 16, 2010 – The National Association for the Self-Employed (NASE) applauds the Senate in their passage today of the Small Business Jobs and Credit Act of 2010 (H.R. 5297). In an era where the self-employed and micro-businesses (fewer than 10 employees) have grown faster than any business type, yet receive the least recognition and support from the federal government, this bill is a key first step in providing tax and access to capital relief for America’s smallest businesses.

A key victory and top legislative priority for the NASE for the past decade, is the inclusion of a one-year deduction for sole proprietors on health care costs for payroll tax purposes on their 2010 tax returns. Currently, the self-employed pay an additional 15.3% (self-employment) tax on their health insurance premium costs since they are unable to deduct those costs as a business expense. No other business entity pays additional taxes of this nature.

”Self-employed Americans have finally received some bottom-line relief in this difficult economic climate with the passage of the Small Business Jobs and Credit Act,” remarked Kristie Arslan, executive director of the NASE. “We hope that this legislation symbolizes that lawmakers are starting to pay attention to the needs of the self-employed, which represent 78% of all small businesses in the U.S.”

Other key provisions in the bill that will assist the self-employed include:

A temporary increase in the maximum deduction for business start-up expenditures in 2010 and 2011 from $5,000 to $10,000, subject to a $60K threshold
Extends the Sec. 179 expensing provision that allows small businesses to immediately expense up to $500,000 (up from $250,000) for tangible personal property and up to $250,000 for improvements to leasehold property and retail property
Creation of a $30 billion Small Business Lending Fund to encourage small local banks and credit unions to increase loans to small businesses

The bill will now head back to the House of Representatives for a final vote and is expected to be signed into law within the next week.

Despite excitement over H.R. 5297’s movement through the Senate today, the NASE hopes to see Congress address the increased Form 1099 reporting requirement passed under the health care law prior to the end of this legislative session, as well as the extension of the individual income tax rates.

Statement On The Small Business Jobs Act - September 14, 2010

NASE — Tuesday, 14 September, 2010 15:23:36 EST

For Immediate Release:

Contact:

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

Washington, D.C., September 14, 2010 – As the U.S. Senate advances the Small Business Jobs Act, Kristie Arslan, Executive Director of the Legislative Offices of the National Association for the Self-Employed (NASE), released the following statement:

“The time for political posturing is over. America’s smallest businesses – the self-employed – need assistance now to weather this economic storm. Representing over 77% of all businesses, the self-employed have been waiting time and time again for Congress to pay attention to the issues that are affecting their businesses; businesses that contribute to their local communities as well as our national economy. It is imperative the Senate act now to pass the Small Business Jobs Act which would offer the self-employed some much needed bottom-line tax savings and access to much-needed capital.”

“Keeping The Health Plan You Have” Not So Simple For Entrepreneurs

NASE — Wednesday, 18 August, 2010 15:00:00 EST

For Immediate Release:

Contact:

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

Micro-Businesses Are Unsure Of New “Grandfathered” Status Rules for Health Plans

Washington, D.C., August 18, 2010 – When it comes to health insurance, micro-businesses (less than 10 employees) and the self-employed have long faced difficulties finding coverage that meets their affordability and health needs. The new health care law, the Affordable Care Act, offers entrepreneurs the choice to keep the plan that they already have, provided that it meets certain requirements. The trouble is that most entrepreneurs are uncertain that their plan will meet these new rules and how the changes required by the health reform law will affect their monthly premium costs, according to a survey released today by the National Association for the Self-Employed (NASE).

Micro-business perceptions of “grandfathered” plan status:

Sixty-five percent of micro-businesses say they only somewhat or slightly understand the new "grandfathered" plan requirements and how it may impact their ability to keep their plans.
Of those aware of the requirements to maintain "grandfathered" status of a health plan, 43 percent believe they can keep their plan. Fifty-seven percent were either unsure or knew that they would not be unable to keep their current plan.
Ninety-two percent believe the self-employed and small business owners should receive a notice from their insurer or from the Federal Government about whether their plan qualifies as a “grandfathered” plan

With close to 50% of micro-business respondents wishing to keep their current coverage, a clear understanding of the “grandfathered” status regulations will be essential to a small-business owner’s ability to maintain their existing coverage.

“The self-employed and micro-businesses are always looking at how to get the best deal and health coverage is no exception,” commented Kristie Arslan, executive director of NASE’s Legislative Offices. “Our concern with the current “grandfathered” status regulations is that it leaves business owners with little wiggle room to make key adjustments to their existing health plan to maintain its affordability for the business owner and employees. Ultimately, micro-businesses will be forced to drop their plan they were hoping to keep and be pushed into the new insurance market which is likely to offer more robust, but also more expensive health plans.”

NASE’s survey found that approximately 67 percent of respondents have changed insurance carriers since the inception of their business, with 55 percent indicating that the primary driver for the change corresponded with the desire to find a better deal or lower costs. Many who made adjustments to their existing health plan to address costs did so by adjusting their deductibles – a move that, under proposed rules, would force them to lose their “grandfathered” status.

The Coalition for Affordable Health Care, of which the NASE is a member, recently submitted a letter to Health and Human Services Secretary Kathleen Sebelius containing suggestions to promote choice, flexibility and more affordable coverage to those who need it most – the self-employed and small-business owners.

Full survey results are available online on the NASE’s Research & Statistics page.

Methodology:
Posted on the NASE Web site, the survey was available for members and other small business owners to take in August. Over 230 small business owners opted-in to the online survey and respondents were prohibited from taking it more than once.

Internet Whiz Receives NASE College Scholarship Worth Up To $24,000

NASE — Wednesday, 4 August, 2010 10:05:42 EST

For Immediate Release:

Contact:

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

Denver, Pa., Student Developed Online Auction Site

Washington, D.C., August 4, 2010 – Zachary Gosling of Denver, Pa., was just 13 when he starting building an online auction website that would be supported by advertising and sponsorships, rather than by the big fees charged by giant auction site eBay. The creation of GozBay.com and several websites for local companies contributed to his selections as the National Association for the Self-Employed’s Future Entrepreneur for 2010.

As the NASE Future Entrepreneur, Gosling receives a college scholarship worth up to $24,000.

He receives $12,000 in the first year and can renew the scholarship for $4,000 in each of the next three years by meeting academic standards.

Gosling plans a major in economics and finance at Drexel University in Philadelphia. He graduated from Cocalico High School, where he maintained a 3.6 grade point average.

“Zach embodies the entrepreneurial spirit that is thriving in young people across America,” says NASE President Robert Hughes. “The NASE is proud that this scholarship will help Zach achieve his dreams for the future.”

The NASE Future Entrepreneur Scholarship is the largest scholarship of its kind in the U.S. and the only one that promotes the entrepreneurial philosophy. It is the flagship award of the NASE Scholarship Program, which has awarded over $1.9 million since its inception in 1989. In 2010, 20 students across the country received $4,000 scholarships for academic excellence.

For more information regarding the NASE Scholarship Program or Gosling, contact Kristin Oberlander at koberlander@naseadmin.org. High resolution photographs available.

NASE Gives $92,000 In College Scholarships

NASE — Wednesday, 4 August, 2010 09:51:44 EST

For Immediate Release:

Contact:

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

Over $1.9 Million Awarded In 21 Years Of Academic Support

Washington, D.C., August 4, 2010 – Just as states across the nation are cutting financial aid due to budget shortfalls, the National Association for the Self-Employed awarded $92,000 in scholarship money to help 20 families send their children to college.

Merit-based scholarships worth $4,000 were awarded to 20 students. The NASE Future Entrepreneur received $12,000, with a promise of $12,000 more over the next three years as long as he maintains a high academic performance.

The scholarship awards will be used to defray the cost of tuition, which has risen to an average of $7,020 per year for four-year public colleges, and $26,273 per year for private schools, according to the College Board.

“For 21 years, the NASE has viewed this scholarship program as a way to help our members send their children to college,” said Robert Hughes, NASE president. “The students can study any subject at any accredited college. I’m proud we can help these students achieve their dreams.”

The NASE Scholarship Program began in 1989 as a way to invest in the future of entrepreneurship. Since its start, over $1.9 million has been awarded to the dependents of NASE Members.

The 2010 NASE Future Entrepreneur, Zachary Gosling from Denver, Pa., is the founder of online auction site GozBay.com (pronounced Go Z-bay). With his scholarship of up to $24,000, he plans to attend Drexel University in Philadelphia as a freshman this fall.

The 2010 NASE $4,000 Scholarship recipients are:

Shayna Turk of Agoura Hills, Calif.
Elaina Smith of Olathe, Kan.
Alex Borland of Smethport, Pa.
Kelly Gwiner of Fostoria, Ohio
Lindsey, Maxon of Arlington, Texas
Emily Rapp of Sharon, N.H.
Lesli Meekins of Port Orchard, Wash.
Ryan Hayes of Jacksonville, Fla.
Michael Langford of San Antonio, Texas
Mary Johnston of Aransas Pass, Texas
Shannon Smith of Arlington, Va.
Alexandra Naumenko of Stroudsburg, Pa.
Brittani French of Wilmington, Mass.
Ashley Durham of Cleveland, N.C.
Hannah White of Wichita Falls, Texas
Brendan Langford of San Antonio, Texas
Katherine Pajor of Hoopeston, Ill.
Hilary Mills of Orange, Calif.
Rebecca Ralphs of Caldwell, Idaho
Katherine Pierce of Oconomowoc, Wisc.

For more information about the NASE Scholarship Program or the 2010 recipients, please contact Kristin Oberlander at koberlander@NASEadmin.org. To learn how to apply for next year's scholarship program, read more here. NASE Members should log in with their Web account to access the application.

Small Biz Lending Fund Wins Key Vote In Senate

NASE — Tuesday, 27 July, 2010 10:54:10 EST

For Immediate Release:

Contact:

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

Amendment Would Offer Incentives To Banks To Encourage Lending

Washington, D.C., July 27, 2010 – After days of contentious dialogue among Democrats and Republicans, an amendment to create a $30 billion lending fund for small businesses passed its first key vote in the Senate leading the way to further debate and a vote on the Small Business Jobs Act (H.R. 5297). S. Amdt 4500 would give small banks, credit unions and similar-sized affiliates a booster (in the form of lower interest rates) to make loans to micro-businesses. The lending fund has the support of the White House and the National Association for the Self-Employed (NASE).

“With so many bills in consideration before the August congressional recess, it is important that lawmakers keep the momentum going on this vital small business legislation,” said Kristie Arslan, executive director of the NASE (Legislative Offices). “Congress had no qualms providing Wall Street with assistance, now it is time that Main Street get the help they need. We strongly urge the Senate to act now to ensure that the self-employed finally get some relief.”

The parent legislation for the lending fund amendment is the Small Business Jobs Act of 2010. The bill includes key policies that the NASE believes are beneficial to micro-businesses and the self-employed. In addition to containing a one-year business deduction for health care costs, it also increases aid to start-up businesses (up to $10,000 in deduction costs with a $60,000 phase-out) and increases Section 179 expensing ($500,000 with a $2 million phase-out in 2010 and 2011).

America’s Smallest Businesses May Finally Get Much-Needed Relief

NASE — Tuesday, 13 July, 2010 12:24:27 EST

For Immediate Release:

Contact:

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

Small Business Jobs Act Addresses Key Health And Tax Priorities For The Self-Employed

Washington, D.C., July 13, 2010 – The self-employed and micro-businesses are often overlooked by lawmakers when it comes to policy, but that may be about to change. The Senate is considering legislation called the Small Business Jobs Act of 2010 (H.R. 5297). This bill contains key provisions that may help America’s smallest businesses in this difficult economic climate, according to the National Association for the Self-Employed (NASE).

A long-standing priority for the NASE has been included in the Small Business Jobs Act, allowing the self-employed to take a one-year business deduction for health care costs. Sole proprietors are unable to deduct their health insurance costs as a business expense, leaving them to pay more in payroll (self-employment) taxes than any other business. The NASE has been working for many years to allow the self-employed to receive the same tax treatment of health insurance costs as all other business entities. While the NASE has been working to permanently correct this inequity in the tax code, the one-year deduction in the Small Business Jobs Act is an important first step in leveling the playing field for the 23 million self-employed Americans.

To further address the needs of our nation’s smallest businesses, Sen. Barbara Boxer (D-Calif.) has offered a vital amendment to the bill, S. Amdt #4430, which helps simplify the tax code for home-based businesses. With over half of all small businesses being run out of the home, the home office deduction is an important tax benefit for small businesses. Unfortunately, the complexity and paperwork burden associated with the home office deduction drives many qualifying business owners to forgo this tax assistance. S. Amdt. #4430 would create the option of a standard home office deduction, allowing eligible business owners to avoid the complex calculations and simply opt for the standard deduction amount. The NASE is strongly urging passage of this amendment.

“Congress and the Administration give a lot of lip service to small business in regards to rebuilding the economy,” remarked Kristie Arslan, executive director of NASE’s Legislative Offices. “But here are two key proposals that would make a tangible difference in their bottomline. For a one- to two-person company, small tax benefits turn into real cash that can actually facilitate business growth.”

Other key provisions included in the Small Business Jobs Act which will provide entrepreneurs with a boost include:

Increased deduction for start-up expenses - currently, entrepreneurs can deduct up to $5,000 of expenses with a $50,000 phase-out. The bill would increase the deduction to $10,000 with a $60,000 phase-out threshold beginning in 2010.
Increase of Section 179 expensing to $500,000 with a phase-out threshold of $2 million in 2010 and 2011.
Creation of a Small Business Lending Fund which would provide federal funding to community banks, credit unions and community development loan funds to increase small business lending.

The NASE strongly supports the Small Business Jobs Act of 2010 and S. Amdt. #4430. We believe the combination of tax incentives and financing options will help new businesses build a solid foundation and help existing businesses keep their doors open. Healthy businesses mean healthy families and communities.

Micro-Businesses Want A National Energy Policy

NASE — Friday, 25 June, 2010 14:21:47 EST

For Immediate Release:

Contact:

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

Cite Tax Credits And Reducing Oil Dependency As Top Priorities

Washington, D.C., June 25, 2010 – Despite a challenging economic climate, saving on energy costs remains a priority for many small business owners. Fifty percent of micro-business owners have made efforts to reduce their energy costs by implementing energy-saving measures in their home and business, according to a study undertaken by the NASE. Forty percent of respondents indicated they had implemented energy-saving measures in their home only, while only nine percent of respondents indicated they had not undergone any energy-saving changes in their home or business.

In light the current oil spill in the Gulf of Mexico, 59 percent of small business owners believe that policymakers should prioritize a national energy policy. The priorities of small business owners in regards to the components of a national energy policy were closely divided between reducing dependence on oil (25 percent), avoiding the imposition of overly burdensome and costly regulations on businesses (23 percent), saving their family and business money on energy costs (21 percent), and improving the environment and the quality of air and water (18 percent).

“Micro-businesses understand that a smart, forward-thinking energy policy will help small business and our nation in the long term. Reducing our dependence on oil by cultivating clean energy will create jobs and business opportunities for small businesses while also lowering energy costs for entrepreneurs and all Americans,” commented Kristie Arslan, executive director of NASE’s Legislative Offices.

When asked about specific energy proposals suggested by Congress and the Administration, micro-business owners were in favor of tax credits and proposals to reduce oil dependency. Eighty percent of survey respondents favored tax credits to individuals who implement specific energy-saving measures in their homes, and 76 percent favored grants and tax credits to small businesses to help them afford implementation of energy-saving measures in their business. Sixty percent favored increasing the use of nuclear power and the creation of new power plants, while 61 percent favored tax subsidies to energy companies to encourage the expansion of alternative energy sources. However, 58 percent of respondents opposed the creation of a cap-and-trade system that would limit emissions of greenhouse gases.

Almost half (49 percent) of survey respondents indicated they were willing to undergo and pay for the implementation of energy-saving measures in their home and/or business. Of those that were unsure or unwilling to implement these measures, 46 percent indicated that this was due to cost.

For the full survey results, please visit NASE's Research & Statistics website.

Methodology:
Posted on the NASE Web site, the survey was available for members and other small business owners to take in June. Over 400 small business owners opted-in to the online survey and respondents were prohibited from taking it more than once.

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) non-profit 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

NASE Gives Member $20,000 Award For Small-Business Excellence

NASE — Thursday, 24 June, 2010 10:34:00 EST

For Immediate Release:

Contact:

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

Washington, D.C., June 24, 2010 -- Doug Springer, owner of Ellsworth, Maine-based small business Springers Gymnastics Center, today received a $20,000 gift from the National Association for the Self-Employed (NASE) in recognition of his excellent small-business practices and contribution to local youth, health and community development.

After teaching gymnastics for 20 years, Springer opened Springer’s Gymnastics Center in 2005. Springers Gymnastics specializes in the instruction of recreational gymnastics for children and young adults in a safe, professional and progressive learning environment. As a member of the NASE, Springer applied for and received a $4,100 Business Development Grant in June 2009 – part of $450,000 in grants given by the NASE since 2006 in response to members’ needs to access capital.

According to an NASE Member survey, 77% of America’s micro-business owners do not believe there are enough funding resources available. A majority of respondents reported having to use personal savings to start their businesses and identified a need for funding from associations and nonprofit organizations that provided grants and loans for small businesses.

Springer used the original grant funds to purchase additional equipment for male gymnasts, with the goal of increasing enrollment in that demographic. After receiving the grant, Springers Gymnastics saw the largest September enrollment in its five-year history, and increased its enrollment of male gymnasts by 10 percent. The tremendous impact Springer made with his grant prompted the NASE to select him out of 19 other grant recipients for a further financial award of $20,000.

"I cannot tell you how honored and humbled I am that you folks thought Springers Gymnastics worthy of recognition," Springer said. "At first, I thought it was just money, but the help, and more importantly, the new focus on my business and new motivation to make it even better is a gift you have given us that we could never repay.”

“Doug is sharing his love of gymnastics with his students, and in the process teaching them important life lessons about sportsmanship and health,” said NASE Executive Director of Communications Maureen Petron. “We’re thrilled to recognize his achievement, an invest in his future growth.”

Petron presented Springer with a $20,000 check at a ceremony in his gymnastics studio. Also in attendance to celebrate his achievement were Springer's family, staff and students. High resolution photographs of the ceremony are available. E-mail koberlander@NASEadmin.org.

Self-Employed Send A Message to Washington With Viral Ad Campaign

NASE — Monday, 14 June, 2010 08:33:32 EST

For Immediate Release:

Contact:

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

“25 Million Jobs And Billions To The Economy Is Not So ‘Bunny’”

Washington, D.C., June 14, 2010 – The National Association for the Self-Employed (NASE) launched a digital advertising campaign today that seeks to raise awareness of the policy priorities of the self-employed and micro-businesses while combating the stereotype that the nation’s smallest businesses do not make serious contributions to the economy. The ads, which are running on inside-the-beltway news Web sites, depict a self-employed business owner wearing a suit, tie…and bunny slippers.

“We are undertaking this public awareness effort to shake up the unfortunate perception that if you are your own boss and work from home, your job is not as valuable as an office or factory job,” says Kristie Arslan, executive director of the legislative offices of NASE. “Not only do the self-employed contribute nearly a trillion dollars to our nation’s economy every year, but their businesses allow them to successfully provide for their families and contribute to their local communities.”

The vast majority – 95% – of all small businesses in the United States are either self-employed entrepreneurs or micro-businesses with fewer than 10 employees. There are about 25 million such businesses, which may have a storefront or be run out of a home office. Their small size makes them acutely aware of economic conditions and policy changes.

Though vulnerable to tough economic times, self-employed businesses have grown faster than all other segments of the economy in recent years and are historically a key driver of economic recovery after a recession. In fact, business startups reached their highest levels in 14 years during 2009, suggesting that laid-off workers are choosing to join the ranks of the self-employed rather than take their chances in a job market that remains unstable.

“With a growing number of Americans embracing entrepreneurialism, Washington should be finding ways to support self-employment and help them drive the country’s economic recovery,” continues Arslan. “Instead, we see a systemic behavior by our policymakers of publicly touting the importance of small business in this economic climate while they quietly issue backdoor rules and regulations that are ultimately pulling the rug out from under America’s entrepreneurs.”

Some examples of current policy issues that have dramatic negative impacts on the self-employed include:

New IRS reporting requirements that will force any business that pays more than $600 per year to a vendor for business services, inventory or property to issue a Form 1099 to that vendor;
Continued lack of a standard home office tax deduction that would allow millions of self-employed individuals access to tax relief to which they are entitled; and
Exclusion from the small business health care tax credit in the recently passed health reform law if you are self-employed or hire family members in your business, leaving the self-employed to face skyrocketing health care costs in the years ahead.

NASE’s “bunny slippers” campaign includes members of the organization, including a tax accountant, a graphic designer and a disc jockey. To learn more about the campaign and NASE’s legislative priorities, please visit http://www.NASE.org/campaigns/NotSoBunny.

New Law Increases Paperwork for Self-Employed Over A Thousand Percent

NASE — Tuesday, 25 May, 2010 21:14:23 EST

For Immediate Release:

Contact:

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

Expanded Reporting Requirement Requires Business Owners to File IRS Form 1099s for All Payments to Vendors Over $600 Annually

Washington, D.C., May 25, 2010 – Many of the nation’s entrepreneurs are about to become more familiar with IRS Form 1099. According to a new law set to go into effect in 2012, business owners will be required to submit a Form 1099 for every payment made via check or credit card to vendors for services, inventory or property over $600 annually. A new survey by the National Association for the Self-Employed (NASE) found that the self-employed and micro-businesses (those with fewer than 10 employees) are overwhelmingly expecting this new regulatory burden to greatly or somewhat increase the amount they spend on tax preparation.

The Form 1099 reporting system has historically been utilized for payments made to independent contractors. According to NASE’s survey, micro-businesses reportedly received an average of four Form 1099s from clients or customers and issued an average of two Form 1099s to contractors in the most recent tax year. Under the new expanded regulation, small-business owners have estimated that they will have to issue roughly 27 Form 1099s, mostly to large corporations. This is a 1250% increase in the amount of paperwork that will be required of small-business owners come 2012.

“To the mom and pop shop, time is money, and this new regulation is going to require plenty of both,” remarked Kristie Arslan, NASE executive director (legislative offices). “The bottom line is that the Form 1099 expanded reporting requirement affects companies small and large, increasing the number of forms issued and received many times over.”

As part of the new expanded Form 1099 reporting requirement, businesses will be required to obtain accurate Taxpayer Identification Numbers (TINs) from all qualifying vendors. Should the business owner be unable to do so, they would be required to withhold a portion of that vendor payment and send it to the IRS. With over 40 percent of survey respondents still preparing their taxes on their own, this added administrative workload will significantly increase the time business owners spend on paperwork and/or force them to hire an accountant, adding to the cost of doing business in this difficult economic time.

Micro-businesses across the board were concerned about the implementation and consequences of this new reporting requirement:

Like most small business owners, I run a business that allows me to sell my expertise in a certain area. Unless that area is tax preparation, there's not a single small business that won't be adversely affected by this regulation. Small business owners and entrepreneurs know they have to devote a certain amount of time to administrative tasks, but the successful business is the one that keeps administrative items to a minimum, and spends the most time on clients and customer services. This is a ridiculous plan, and punitive against small business.

I have a hard enough time doing my taxes already. This will dramatically increase the time burden and cost. I may have to let go of an employee so I can instead pay an accounting service to handle my accounting and taxes.

I work as an accountant for small non-profits and small businesses. These reporting requirements will greatly increase the amount that they will need to pay for their accounting services.

Ridiculous! Get out of our way and let us do our jobs!

NASE is currently working to repeal this onerous regulation on the micro-business community. Rep. Daniel Lungren has introduced the Small Business Paperwork Mandate Elimination Act (H.R. 5141), which would repeal this expanded reporting requirement.

To view full survey results, visit the NASE Research page: http://www.nase.org/Media/ResearchStatistics/SurveyResults.aspx

Methodology:

Posted on the NASE Web site and distributed to NASE’s membership via e-mail and association newsletters. The survey was available for members and other small business owners to take in May. Over 300 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.

National Small Business Week: May 23rd – 25th

NASE — Monday, 24 May, 2010 16:25:00 EST

For Immediate Release:

Contact:

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

President Obama, NASE, SBA Honor Self-Employed And Micro-Businesses

Washington, D.C., May 24, 2010 – According to the Small Business Administration (SBA), approximately 60 percent of Americans own or work for a small business. The National Association for the Self-Employed (NASE) is teaming up with the SBA again to sponsor National Small Business Week 2010. For nearly fifty years, one week has been set aside annually in order to honor the contributions of the nation’s small business community. The NASE works with the SBA to help increase access to capital and lends our support to federal initiatives that have proven helpful to micro-business growth.

“This week, we celebrate the role of entrepreneurs and small businesses in our national life. They are the engine of our prosperity and a proud reflection of our character,” said President Barack Obama. “A healthy small business sector will give us vibrant communities, cutting edge technology, and an American economy that can compete and win in the 21st century.”

The full text of the President’s National Small Business Week proclamation can be found at:
http://www.whitehouse.gov/the-press-office/presidential-proclamation-small-business-week

"This past year has seen a new social and political focus on the importance of micro-businesses and the self-employed,” said Robert Hughes, NASE president. “Small Business Week offers a formal opportunity to join in recognizing the innovative potential of the largest business type in the nation – self-employed firms."

For information on National Small Business Week, please visit http://nationalsmallbusinessweek.com/.

Main Street, Consumers One Step Closer To Accountable Wall Street

NASE — Friday, 21 May, 2010 16:39:48 EST

For Immediate Release:

Contact:

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

New Consumer Financial Protection Bureau Must Consider Small Business Impact Of New Regulations

Washington, D.C., May 21, 2010 – The effort to ensure a safer, more consumer-friendly Wall Street moved one step closer to success with the passage Thursday night of the Restoring American Financial Security Act in the Senate. Details of the final bill will now be reconciled between the House (H.R. 4173) and Senate (S. 3217), but the essence remains the same: create a consumer watchdog to protect against hazardous financial situations, regulate banks more closely and streamline massive institutions before they have a chance to fail.

– The effort to ensure a safer, more consumer-friendly Wall Street moved one step closer to success with the passage Thursday night of the Restoring American Financial Security Act in the Senate. Details of the final bill will now be reconciled between the House () and Senate (), but the essence remains the same: create a consumer watchdog to protect against hazardous financial situations, regulate banks more closely and streamline massive institutions before they have a chance to fail.

“The self-employed and micro-businesses were hit particularly hard during the financial crisis and are still reeling from its effects,” commented Kristie Arslan, executive director (legislative offices), in a recent NASE Staff Blog post. “Much of their personal finances are tied up with their business finances. Their reliance on credit cards, lines of credit and home equity loans to help with the daily operating costs of their business left the self-employed especially vulnerable to unpleasant industry practices.”

The National Association for the Self-Employed (NASE), and other small business organizations, worked collectively to ensure that small business and the self-employed had a voice in this process. Due to the leadership of Senators Snowe (R-ME), Pryor (D-AR), Graham (R-SC), Menendez (D-NJ), Franken (D-MN), Shaheen (D-NH), Bond (R-MO) and Burris (D-IL), the Small Business Fairness and Regulatory Transparency Amendment (S. Amdt. 3883) was included in the final bill.

This provision ensures that the newly created Consumer Financial Protection Bureau will take a special look at rules which may impose significant costs on small business. It will also require the agency to prioritize minimizing the burden on small business during the drafting of new rules and regulations while also preserving consumer protections.

The self-employed and micro-business (those with fewer than 10 employees) have been vocal in the past three years about the actions of government, the financial services industry and consumers which led to the collapse of the economy. The NASE has consistently heard from members that, while oversight and accountability are essential to a healthy economy, increasing federal bureaucracy can increase the cost of doing business and impact small business access to credit. Micro-businesses strongly supported a balanced approach to regulating the financial service sector.

“The passage of the Restoring American Financial Security Act, with the inclusion of the Small Business Fairness and Regulatory Transparency Amendment, will help create a climate of accountability for Wall Street and ensure that small business consumers receive the protections they need while also protecting them from overly burdensome regulations,” remarked Kristie Arslan. “As Congress takes the final step towards financial reform, we urge legislators to keep these small business safeguards in the final bill.”

To read additional commentary on small business policy, visit the NASE Staff Blog.

Tax Tips For Procrastinators From NASE National Tax Advisor, CPA

NASE — Wednesday, 31 March, 2010 12:15:00 EST

For Immediate Release:

Contact:

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

Entrepreneurs Expected To File 23 Million Returns For 2009

Washington, D.C., March 31, 2010 – Tax Day is just a few weeks away, but is filing your return still on the ‘To Do’ list? It’s okay if you have not filed yet because the National Association for the Self-Employed (NASE) is offering some last minute tax tips to make the process go smoothly.

“From time to time, we have all gotten a later start on our taxes than we would like,” said Keith Hall, NASE’s National Tax Advisor. “If you file your business return with your personal return, you may be able to get an automatic 6-month extension by completing Form 4868 by April 15. But remember, an extension of time to file is not an extension to pay. If you do not send the IRS what you think you owe, you'll be stuck with late fees and interest.”

Hall offers these additional tips for tax procrastinators:

- Check for hidden deductions: There are a number of deductions that small-business owners and the self-employed forget when filing taxes. If you work out of your home, your office may qualify for a deduction. Do you drive to the post office or a client site? Those miles may add up to a sizable deduction too.

- Retirement savings: Retirement savings, such as SEP contributions and IRA deposits, are deductible for last year’s tax return up until April 15, 2010. That means you can count money deposited into these accounts, up until the day you file your 2009 tax return. In the case of SEP contributions, those can even be made up until an extended due date, as late as October 15th.

- Proofread the form: Most of the mistakes on tax returns are simple addition and subtraction errors. Check your math. Then, check your math again.

- Start thinking about next year: While micro-business owners may be tempted to finish their return and not think about taxes again until next year, now is a great time to reflect on how to reduce your 2010 tax liability. Consider deductions for a home office or employing your children; create a health reimbursement arrangement, which would enable the business to reimburse bona fide employees for all out of pocket medical expenses; reconsider the tax implications of incorporating your business; and research retirement plans designed specifically for the self-employed, including an IRA, SIMPLE, SEP, Single 401(k), and Keogh plan.

- Look for help: Sole proprietors doing their own taxes can find help from a number of sources, including the NASE’s Tax Resource Center, where you can ask the NASE’s expert CPAs a question and hear back within a few business days. The IRS also offers a Web site (http://www.irs.gov/) and toll-free help line, 1-800-829-1040, for your tax questions.

Nation’s Job-Creators Largely Oppose Health Reform Legislation

NASE — Friday, 19 March, 2010 16:29:25 EST

For Immediate Release:

Contact:

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

Bottom Line Cost Savings Most Important To The Self-Employed

Washington, D.C., March 19, 2010 – Companies with fewer than 10 employees – micro-businesses – are asking Congress to keep in mind that a big part of being able to create jobs and grow their companies depends largely on their ability to pay for health coverage. Self-employed business owners say that access to health care and choice in providers/benefits is less important to their businesses than cost; Pocketbook-watching factors such as stable premium costs and inclusive coverage not negated by health condition or age is of most importance to the nation’s smallest businesses. With the clock ticking down to a final vote in Congress on health reform legislation, the online poll conducted by the National Association for the Self-Employed (NASE) received over 1,200 responses regarding the concerns of the self-employed with health reform.

Survey Highlights:

• Lowering health premium costs and ensuring they do not continue to increase (42%) and reforming the insurance market so individuals cannot be denied coverage due to their health status or age (24%) were cited as MOST important to their businesses.

• Respondents cited increasing choice in health plans and benefit options (32%) and ensuring that the uninsured have access to health coverage (29%) as factors in the health reform package that were LEAST important to their business.

• Three in five micro-businesses say they do not support the current health care proposal. Twenty-eight percent support the proposal and 12% say they are undecided.

• Of those who said they did not support the current proposal, 58% say they do not want Government to become too involved with health care. Nearly one-quarter (23%) say the plan is too costly and will increase the deficit.

Responses from micro-businesses:

• “The insurance companies are currently enjoying a monopoly. Unless we introduce competition, costs will continue to escalate.”

• “All of the issues listed in the survey are important! Costs for self-employed business people are outrageous with little options available to us.”

• “Yes, we need health care reform but the massive plan they are trying to ram through now is filled with sweetheart deals, other legislation not related to health care, double talk and union deals. It needs to be scrapped and a new bill drawn up.”

• “I am not entirely happy with the current bill as I would have preferred a public option, but I think that the idea that everyone needs to have insurance and that one cannot be denied due to past history is crucial.”

• “[Policymakers] have not addressed how everybody pays their share of insurance.”

Full survey results are available online on the NASE’s Research & Statistics web page.

Methodology:
Posted on the NASE Web site, the survey was available for members and other small business owners to take in March. Over 1,200 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 this poll and the self-employed perspective on health reform. 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.

Tired Of Tracking Business Miles By Hand? We Have An App For That!

NASE — Wednesday, 17 March, 2010 14:40:05 EST

For Immediate Release:

Contact:

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

TripAlly For iPhone Uses Built-In GPS To Create Your Mileage Log

Washington, D.C., March 17, 2010 – New iPhone application TripAlly tracks, calculates and records miles driven to create the ultimate tax-deduction mileage log. Whether you need to track miles for your small business, charitable contributions, for employee reimbursement, or simply because you want to know, TripAlly can help.

TripAlly follows your entire trip using the iPhone’s built-in GPS – not just your starting and ending address – and stores mileage reports by purpose, month and year. Created by the National Association for the Self-Employed, TripAlly is the perfect solution for real estate agents, sales and delivery people, and anyone needing to record round-about routes for tax and reimbursement purposes.

Start each trip by simply touching the green “Start” button. The GPS pings location every .3 miles for an accurate record of the entire trip. At the trip’s end, assign a trip purpose, save it as a favorite route for easy repeats, and view your day, month and yearly mileage total. TripAlly even allows for manual trip entry by address.

Best of all, TripAlly is free to use on a trip-by-trip basis. Download the app and TripAlly will show a single trip’s miles, allowing you to keep track of the miles you drive in your own mileage log.

For a full mileage log, TripAlly can track everything for you. Register to get all TripAlly features -- categorize your trips, assign favorite routes, add manual routes, view trips by month and year, and print reports at your convenience. TripAlly makes it easy to track your business mileage deduction and expenses, all directly from your handheld device for only $9.99.

Registered Features:

Round-about route? TripAlly pings your GPS location every .3miles, not just your start and end location. Great for real estate agents, sales agents and anyone needing to track the miles they drive!
Go somewhere frequently? Save your route as a favorite, and add your trip to your total trip history with one touch.
Want to store more information? Categorize your trips by purpose, and add notes.
Forgot to add a trip? No problem – add one manually by entering your starting and ending locations, or repeat a favorite route.

There’s more at http://tripally.NASE.org!

Misplaced mileage log? Never a worry again with TripAlly. All the trip information for registered users is backed up online automatically! Access the information anytime.
Not sure what to do next? The NASE can help answer your business mileage questions, such as what line to record the miles on different tax forms, and the latest IRS mileage rates.
Make a mistake? Edit your trips easily and quickly online.
Afraid of an audit? Don’t worry about supporting your mileage deduction thanks to TripAlly. Store all your trips for the entire year, view and print reports at any time!

Record the miles you drive, and maximize your business tax deductions or business reimbursements with TripAlly. Download TripAlly at the iTunes App Store.

On Merlin Olsen...

NASE — Thursday, 11 March, 2010 19:24:04 EST

March 11, 2010 – Pro Football Hall of Famer, former television actor and NASE spokesperson Merlin Olsen has died. He was 69.

“Merlin was an incredible representative of the NASE to the small-business community,” said Robert Hughes, NASE president. “Our condolences go out to his family on behalf of myself, the NASE board of directors and the entire NASE team.”

How To Prepare Your Micro-Business For Future Audits

NASE — Wednesday, 17 February, 2010 14:05:39 EST

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

NASE — Thursday, 4 February, 2010 14:38:03 EST

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.

2009 Tax Changes For The Self-Employed

NASE — Wednesday, 13 January, 2010 09:25:55 EST

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.

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

NASE — Wednesday, 13 January, 2010 09:15:16 EST

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

NASE — Monday, 11 January, 2010 15:24:12 EST

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

NASE — Wednesday, 6 January, 2010 10:25:15 EST

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

NASE — Thursday, 31 December, 2009 11:00:00 EST

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.

NASE Members Receive $40,000 In Business Development Grants

NASE — Wednesday, 30 December, 2009 10:54:00 EST

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

NASE — Tuesday, 22 December, 2009 15:45:32 EST

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

NASE — Tuesday, 15 December, 2009 12:04:19 EST

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

NASE — Friday, 11 December, 2009 10:43:59 EST

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

NASE — Wednesday, 9 December, 2009 08:57:25 EST

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

NASE — Monday, 23 November, 2009 14:06:55 EST

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

NASE — Tuesday, 10 November, 2009 14:11:42 EST

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

NASE — Friday, 23 October, 2009 12:13:36 EST

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.

“Mr. President, The Self-Employed Need Your Help,” Says NASE

NASE — Thursday, 22 October, 2009 14:52:42 EST

Association Talks Access to Capital and Health Reform With President Obama At Small Business Event

Washington, D.C., October 22, 2009 - During a meeting with President Obama, the National Association for the Self-Employed (NASE) made sure to mention that micro-businesses are still facing difficulties getting access to credit and financing and that health costs are crippling the backbone of the American economy – the self-employed.

The meeting was part of a small business event in Maryland yesterday to unveil a new initiative to increase access to capital. The President announced plans to increase small business lending by providing capital support to community banks, raising loan limits on SBA’s various loan programs, and creating a “lending conference” to find other methods of expanding credit and financing to small business.

“So to all the small business owners out there,” commented President Obama. “I know that times are tough and I can only imagine what many of you are going through, in terms of keeping things going in the midst of a very tough economic climate, but I guarantee you this: This administration is going to stand behind small businesses. You are our highest priority because we are confident that when you are succeeding, America succeeds.”

A key component of the President’s new small business lending initiatives is increasing the maximum loan size of SBA 7(a) loans from $2 million to $5 million, in order to help small businesses invest in machinery, equipment, land, and buildings. Additionally, there has been a push to raise the maximum loan size of SBA microloans from $35,000 to $50,000 which will give a boost to start-ups and micro-businesses.

Passage of legislation will be required to adjust SBA loan limits. Senator Mary Landrieu, Chair of the Senate Committee on Small Business and Entrepreneurship, along with other key Senate Members have introduced “The Small Business Access to Capital Act” (S.1832) to address this issue. The NASE strongly supports this bill which would expand SBA funding opportunities.

“We are pleased to see this renewed focus on small business. In this time of economic decline, it is the self-employed and micro-businesses that will lead us to recovery,” said Executive Director Kristie Arslan. “After handing out billions of taxpayer dollars to shore up big business, we feel it is time our nations’ policymakers focus on America’s smallest businesses. We applaud the President for moving in the right direction with his recent announcement.”

View a fact sheet on the initiative here.

Senate Introduces Home Office Deduction Bill

NASE — Friday, 9 October, 2009 13:37:36 EST

For Immediate Release:

Contact:

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

Tax Benefit For The Self-Employed Makes Filing IRS Forms Easier And Faster

Washington, D.C., October 9, 2009 – The majority of micro-businesses are operated out of a home office, yet the home office deduction has become wrapped in enough regulatory red tape to turn those business owners away from the tax benefit. New legislation could help home-based businesses save nearly $1,500 on their taxes next year. The National Association for the Self-Employed (NASE) is proud to support the Home Office Tax Deduction Simplification Act (S. 1754), a bill that was introduced by Sen. Barbara Boxer (D-Calif.) this week. Sens. Jeff Merkley (D-Ore.), Joe Lieberman (IND-Conn.) and Evan Bayh (D-Ind.) also lent their support to this bill.

“We are proud to see that both the House and Senate have taken a stand on this important issue,” said Kristie Arslan, executive director of the NASE legislative office. “Hopefully, there will be movement on this bill this year to assist our nation’s home-based businesses.”

Business owners often report that the qualification criteria for the deduction is too difficult to navigate, while others fear that taking the deduction will trigger an audit. The legislation would allow business owners the option of a $1,500 standard deduction, but would not disqualify taxpayers currently eligible for the home office deduction from continuing to itemize their expenses. Rather, it offers a taxpayer-friendly way to take the deduction. If passed by Congress, the bill would significantly minimize the time and paperwork needed for tax preparation for these tiny businesses. The bill would also require that the amount of the standard deduction be indexed for inflation.

“Small businesses are critical to the American economy, and this legislation will help them thrive,” said Sen. Boxer, “This bill cuts the red tape that prevents many small businesses from claiming this tax deduction. By making it easier to claim the deduction, more small businesses can invest these funds to expand and create much-needed jobs.”

In September, Rep. Kurt Schrader (D-Ore.) introduced similar legislation in the House of Representatives. For more information, see “Legislators Take On Home Office Deduction.”

For statistics on entrepreneurs and the home office deduction, view the results of this 2008 NASE poll.

NASE Members Receive $20,000 In Business Development Grants

NASE — Thursday, 1 October, 2009 16:16:23 EST

For Immediate Release:

Contact:

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

Washington, D.C., October 1, 2009 – Micro-business owners received a financial boost to their business in the third quarter, thanks to the National Association for the Self-Employed’s Business Development Grant Program. These NASE Members, with businesses as varied as a communications firm and a recycling service, were awarded a total of $20,000 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 $350,000 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 third quarter of 2009:

Theresa Cassiday of Catena Creations, LLC in Bellevue, Neb.
Janna Piper of Janna Piper Housesitting in Portland, Ore.
Lily Hay of Aglow Marketing, LLC in Indianapolis, Ind.
Robby Gerken of Erie Recycling Services, LLC in Antwerp, Ohio

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

Allowing Tax Incentives To Expire Will Hurt Small Firms

NASE — Wednesday, 30 September, 2009 14:00:00 EST

For Immediate Release:

Contact:

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

NASE Asks Legislators To Help the Recovery by Helping Small Business

Washington, D.C., September 30, 2009 – Although originally enacted to prevent those Americans with the most resources at their disposal from avoiding taxes, the Alternative Minimum Tax (AMT) did not take into account the effects of inflation, the growth of earnings and expenses. Congress has adjusted the exemption amount over time to keep up with inflation, but that adjustment is now scheduled to end, which would result in an increased tax burden for many small business owners and families.

The NASE’s National Tax Advisor, Keith Hall, testified before the House Committee on Small Business today about how allowing the AMT and other tax incentives to expire would cause a direct and unintended tax increase on the small business sector that many are relying on to continue the economic recovery. Hall suggested that at a minimum, the exemption amounts should not be allowed to decrease, but should be increased annually based on an inflation index in order to continue the recovery.

“Allowing the increase in the exemption amount to ‘sunset’ would directly increase the tax burden for many Americans past their ‘fair share’ simply because they may live in a state with a higher than average state income tax. Others would pay more than their fair share simply because they have a larger than average family. Others would pay more than their fair share simply because they have higher mortgage interest due to a second lien necessary to fund their business or a child’s education. Clearly, none of these scenarios was the intent of the AMT from so many years ago,” noted Hall.

The NASE supports the extension of expiring tax incentives including the AMT exemption, accelerated depreciation, sales tax deductions, first time home owner buyer credit and others. The key point for supporting the extension of tax incentives is to support extending the economic recovery. The NASE believes in the long term impact that small business will have on the overall economy. Promoting investment, encouraging new job development and keeping the playing field level for all taxpayers is essential to long term recovery.

Read the full text of Keith Hall's testimony here.
Watch highlights from Keith Hall's testimony on YouTube.

Track the progress of current legislation that would help micro-businesses and the self-employed by visiting advocacy.NASE.org.

Legislators Take On Home Office Deduction

NASE — Friday, 25 September, 2009 09:24:08 EST

For Immediate Release:

Contact:

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

Important Tax Benefit for Home-based Entrepreneurs To Be Simplified

Washington, D.C., September 24, 2009 – New legislation could help self-employed business owners who work from a home office save an additional $1,500 on their taxes next year. Congressman Kurt Schrader (D-OR), Chairman of the Finance and Tax Subcommittee of the House Small Business Committee, and Congressman Devin Nunes (R-CA), a member of the House Ways and Means Committee, have re-introduced bi-partisan legislation to simplify the filing process for the home office deduction by providing for an optional standard deduction. Representatives Ron Kind (D-WI) and Vern Buchanan (R-FL) are also named as primary co-sponsors of this bill.

With the majority of micro-businesses being operated from an office inside the home, the Home Office Tax Deduction Simplification Act (H.R. 3615) will ease tax time worries for millions of entrepreneurs. The legislation would allow business owners the option of a $1,500 standard deduction, but would not preclude taxpayers currently qualifying for the home office deduction from continuing to itemize their expenses should they choose. It would simply offer a taxpayer-friendly way to take the deduction. If passed by Congress, it would significantly minimize the paperwork and time spent on tax preparation for entrepreneurs managing their business out of their home. The bill would also require that the amount of the standard deduction be indexed for inflation.

Many business owners cite complexity of the criteria to qualify for the deduction as too cumbersome; others cite a fear being audited as their primary reason for avoiding this deduction. The NASE has advocated for the simplification of the tax code, specifically the home office deduction, for many years. In a 2008 NASE poll, three in five home-based business owners admitted they did not utilize the current home office deduction. Of those, nearly two-thirds said the option of a standard deduction would encourage them to take it.

"The home office deduction is the perfect example of a commonsense deduction that has become so complicated that qualifying taxpayers forgo this vital tax benefit.” said Kristie Arslan, executive director of the NASE legislative office. “An optional standard deduction would remove the barriers faced by eligible home-based entrepreneurs and allow them to take a tax deduction they greatly need in this difficult economic time.”

"Small businesses are the job creators in our economy,” said Schrader. “This bill will streamline the tax process that often puts an undue burden on entrepreneurship allowing small businesses to put these savings back into the economy. That means hiring more workers, expanding their businesses, and helping rebuild our economy. I’m pleased to join with my colleague Representative Nunes to work for a bi-partisan proposal to help American small businesses and our economy.”

NASE, Business Owners Respond To Pres. Obama’s Health Care Speech

NASE — Thursday, 10 September, 2009 16:12:19 EST

For Immediate Release:

Contact:

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

Address Leaves Small Business Owners With More Questions

Washington, D.C., September 10, 2009 – President Barack Obama delivered a prescription for health care last night that left some of the self-employed wondering just where they fit in the plan. While the speech elaborated on current proposals the President wants in a final reform package, he did not address a number of key concerns for micro-business owners (those with 10 or fewer employees). Click here to read the full text version of the President’s speech online.

“While I am pleased that the President has decided to take a more active role on health reform and referee the players on Capitol Hill, ultimately we all know that the devil is in the details,” remarked Kristie Arslan, executive director of the National Association for the Self-Employed (NASE). “If the President is going to hold fast to the current proposals -- some good, some bad -- on the table and not offer any new ideas, then we need to know his opinion on the details and how it differs from that of Congress.”

The NASE supports a few specific reform proposals that will provide enormous relief for self-employed business owners. These propositions will greatly increase their ability to afford coverage for themselves, their families and their employees:

Exchange/Gateway: The creation of a national Exchange as well as other pooling mechanisms, such as cooperatives, to increase access to coverage and create administrative efficiencies for individuals and businesses with 50 or fewer employees.
Business Deduction for Health Insurance for the Self-Employed: Unlike their larger counterparts, the self-employed cannot deduct health insurance premiums as a business expense and instead are taxed on their health coverage. The cost of leveling the playing field is about 2.5 percent of the total price tag for health reform. For our smallest businesses, this is a small price to pay for a provision that will make coverage more affordable and accessible for 22 million self-employed Americans nationwide.
Expansion of Health Reimbursement Arrangements (HRAs): Sole-proprietors are not eligible to participate in an HRA, which is a flexible benefit option that allows other business entities to help employees with their health care costs. HRAs represent a consistent and stable way for the self-employed and micro-businesses to extend employees financial assistance toward health care costs.
Market Reforms: The NASE supports market reforms that would remove the use of health status as an underwriting mechanism for access to coverage.
Benefits: Current health reform legislation creates a committee or advisory council to determine an essential benefits package (i.e. a minimum level of coverage allowed.) The determination of an essential benefits package can play a large role in the cost of coverage. There must be a balance between cost and coverage to ensure that any required minimum benefits package is affordable.

After Pres. Obama’s speech, the self-employed weighed in with their reactions:

“My concerns remain the same: Is there a possibility that my premiums may actually increase because I can no longer purchase the kind of coverage I currently have,” Graphic Designer Alyssa Turk of Grand Rapids wondered. “Regardless of how you cut it, the government will be much more involved in the health care choices of those who purchase health care privately. This is what I am opposed to. I am happy to be responsible and have health insurance; I simply don't trust the government to determine my plan.”

“As small-business owners, I see most of us just taking the 8% penalty for not insuring our employees and letting our employees just use the government option,” said Chris Humphrey, a photographer from Tulsa, Oklahoma. “It's sad but true. I can't afford a massive hike in health care rates and I know most other small businesses can't either. Let the free market work and let the insurance companies compete across state lines.”

View a more detailed version of the NASE’s Health Reform Priorities online.

Read Arslan’s entire commentary on the NASE Staff Blog.

Read the full text of President Obama’s address to a joint session of Congress.

NASE To Attend Orlando Small Business Community Day – Sept. 17

NASE — Tuesday, 1 September, 2009 12:06:12 EST

For Immediate Release:

Contact:

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

Entrepreneurs Can Gather, Network And Learn At Florida Event

Washington, D.C., September 1, 2009 – This fall, small-business owners in the Orlando-area will have a great opportunity to broaden their skills and network with other entrepreneurs and small business-centered organizations and companies. The Association of Small Business Development Centers (ASBDC) is hosting “Orlando Small Business Community Day” on Thursday, September 17, at Rosen Shingle Creek Resort.

The event will feature informative workshops, roundtables and a tradeshow. Participants will have the opportunity to learn from various small-businesses experts, including Rhonda Abrams, a Small Business columnist for USA Today, and Al Lautenslager, an author, consultant, speaker, and business owner. Other workshops will be hosted by tradeshow vendors. Click here for a list of exhibitors.

“The NASE is a strong supporter of the SBDC program, which plays a vital role in nurturing entrepreneurship,” said Keith Hall, Chief Operating Officer of the NASE. “We are happy to participate in this important event.”

The National Association for the Self-Employed (NASE) advocates for continued support and additional funding to assist Small Business Development Centers. Nearly 1,000 local SBDC offices provide entrepreneurial assistance to more than 1.2 million small business owners and aspiring entrepreneurs each year. The centers offer face‐to‐face business consulting at no charge and at‐cost training on writing business plans, accessing capital, marketing, regulatory compliance, international trade and more.

Visit the ASBDC online for more information and to register for “Orlando Small Business Community Day.”

NASE Gives $84,000 In College Scholarships

NASE — Wednesday, 12 August, 2009 15:06:29 EST

For Immediate Release:

Contact:

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

NASE Gives $84,000 In College Scholarships

Over $1.8 Million Awarded In 20 Years Of Academic Support

Washington, D.C., August 12, 2009 – Just as states across the nation are cutting financial aid due to budget shortfalls, the National Association for the Self-Employed awarded $84,000 in scholarship money to help 17 families send their children to college.

Merit-based scholarships worth $4,000 were awarded to 18 students. The NASE Future Entrepreneur received $12,000, with a promise of $12,000 more over the next three years as long as he maintains a high academic performance.

The scholarship awards will be used to defray the cost of tuition, which has risen to an average of $6,585 per year for four-year public colleges, and $25,143 per year for private schools, according to the College Board.

“For 20 years, the NASE has viewed this scholarship program as a way to help our members send their children to college,” said Robert Hughes, NASE president. “The students can study any subject at any accredited college. I’m proud we can help these students achieve their dreams.”

The NASE Scholarship Program began in 1989 as a way to invest in the future of entrepreneurship. Since its start, over $1.8 million has been awarded to the dependents of NASE Members.

The 2009 NASE Future Entrepreneur, Joe Pielago, is a Los Angeles streetwear designer. With his scholarship of up to $24,000, he plans to attend the University of San Francisco as a freshman this fall.

The 2009 NASE $4,000 Scholarship recipients are:

Clare Bateman of Waymart, Pa.
Victoria Boyd of Memphis, Tenn.
Abigail Ebensberger of La Vergne, Tenn.
Brittany Elmer of Rockton, Ill.
Kelly Gwiner of Fostoria, Ohio
Laurel Hansen of Allison Park, Pa.
Hannah Harmsen of Middleville, Mich.
Lindsey Maxon of Arlington, Texas
Lesli Meekins of Port Orchard, Wash.
Ethan Montgomery of Stephenville, Texas
Jennifer Pappas of Methuen, Mass.
Emily Rapp of Sharon, N.H.
Joshua Scherschel of Bedford, Ind.
Raphael Shapiro of Sag Harbor, N.Y.
Trevor St. John-Gilbert of Rockwall, Texas
Jason Wilber of Downingtown, Pa.
Julia Wilber of Downingtown, Pa.
Devon Zielinski of Argyle, Texas

For more information about the NASE Scholarship Program or the 2009 recipients, please contact Kristin Oberlander at koberlander@NASEadmin.org.

It’s (Big) Business As Usual In Washington, D.C., Says NASE

NASE — Tuesday, 11 August, 2009 12:21:05 EST

For Immediate Release:

Contact:

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

It’s (Big) Business As Usual In Washington, D.C., Says NASE

Current Health Care Reform Proposals Leave Self-Employed To Foot The Bill

Washington, D.C., August 11, 2009 – The NASE recently spoke out on current health care reform legislation, which is notably missing two items that would have a substantial effect on the affordability of coverage for the self-employed. The NASE has been vocal in its support for allowing the self-employed to deduct their health care costs as a business expense. The Association has also advocated for improving Health Reimbursement Arrangements (HRAs) to allow the self-employed business owner to participate in the plan along with their employees. Unfortunately, neither provision has been included, nor offered as an amendment, in the current larger health reform bills.

“With close to 23 million Americans taking care of their families and creating jobs through self-employment, Congress would be wise to pay attention to the needs of this growing demographic,” said NASE executive director Kristie Arslan. “Unfortunately, this has not been the case with health reform.”

Earlier this year, legislation was introduced in the House (H.R. 1470) and Senate (S.725) to allow small firms to deduct health costs as a business expense. The tax code currently permits corporations to both deduct health insurance premiums and to forgo payroll taxes on these expenses. In addition, the employees of these corporations can pay for health coverage with pre-tax dollars. Unfortunately, the same tax benefits are not extended to sole proprietors. As a result, these business owners must pay 15.3% in self-employment taxes – their payroll taxes. For example, a business owner paying $6,000 per year for health insurance must also pay $918.00 in additional self-employment taxes because of this inequality in the tax code.

Another cost-saving proposal before Congress is to open eligibility for HRAs to small business owners. An HRA is a flexible benefit option allows small business owners to reimburse employees tax-free for out-of-pocket medical costs, including health insurance premiums. A key benefit of an HRA is that they do not require the business owner to purchase a group health plan; therefore, setting up an HRA can offer some financial assistance to employees of micro-businesses who are unable to afford group health insurance.

"Regrettably, expansion of Health Reimbursement Arrangements is not on the radar screen of policymakers on the Hill," Arslan remarked. "In fact, we have heard rumblings that Senate Finance Committee may actually want to take away their tax deductibility in order to help finance their health reform proposal."

Read more about health reform and other legislative priorities of the NASE at http://www.nase.org/Advocacy/TopFedIssues.aspx.

Small business commentaries by Kristie Arslan, click here.

NASE Asks Senators To Lower Health Costs For Small Business

NASE — Friday, 10 July, 2009 16:46:03 EST

For Immediate Release:

Contact:

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

Senate Small Business Committee Roundtable A Forum For Small Business Owners, Advocates

Washington, D.C., July 10, 2009 – The United States Senate Committee on Small Business and Entrepreneurship recently held a roundtable to discuss the impact of various health reform proposals on small businesses. Kristie Arslan, Executive Director of the Legislative Office for the National Association for the Self-Employed (NASE), participated in the roundtable along with Senator Ron Wyden (D-Ore.) and other small business owners and advocates.

Arslan spoke about how NASE Members consistently cite health care as the top issue affecting their business, and asked Congress to help the self-employed with the high health care costs that are damaging their businesses. Arslan mentioned the results of a June 2009 survey by the NASE in which approximately 60 percent of respondents chose cost containment as the most important aspect of reform for them and their business.

“Our nations’ smallest businesses not only want health reform but in fact, they need reform in order for their businesses to remain viable,” she commented. “Improving affordability and stability of premiums as well as providing for sustainable cost containment in the overall healthcare system must be a top reform priority.”

Both Small Business Committee Chair Mary Landrieu (D-La.), and Ranking Member Olympia J. Snowe (R-Maine), acknowledged the high costs that small business owners face to provide health care for themselves and their employees.

“The cost of providing coverage is rising at an unpredictable and unsustainable rate, making it difficult for small business owners to secure stable healthcare for their employees,” said Sen. Landrieu. “Simply put, we need to reform our health care system to provide small businesses the opportunity to grow and prosper. The cost of doing nothing is just too great.”

“Small business health reform must be a central component to our broader reform efforts, and that is why I am working diligently, as a senior member of the Senate Finance Committee, to craft bipartisan, comprehensive health care reform legislation that will make health care more affordable and universal for small businesses and the self-employed,” added Sen. Snowe.

Watch archived footage of the roundtable here.

View comments submitted on behalf of the self-employed by Executive Director Kristie Arslan.

Streetwear Clothing Company Founder Receives NASE’s Future Entrepreneur College Scholarship

NASE — Friday, 10 July, 2009 10:07:27 EST

For Immediate Release:

Contact:

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

Streetwear Clothing Company Founder Receives NASE’s Future Entrepreneur College Scholarship

Washington, D.C., July 8, 2009 -- For twenty years, the National Association for the Self-Employed (NASE) has provided budding entrepreneurs with a means to success through its college scholarship program. This year is no exception, with a scholarship worth up to $24,000 going to Joe Pielago, a Los Angeles streetwear designer.

The NASE's Future Entrepreneur award is the only one of its kind devoted to fostering entrepreneurship in college-bound students. Joe receives $12,000 towards his education for the first year, and he can renew it up to three more times for $4,000 each year as long as he maintains certain academic standards.

Joe recently graduated from Palos Verdes High School in Rancho Palos Verdes, Calif., and will use his scholarship to study business at the University of San Francisco this fall.

“This scholarship helps me so much,” Joe says. “I knew . . . my high school education would not provide me with enough of a background to meet my ambitions. I knew that I needed to attend college. After researching what colleges had to offer, I decided I needed to be a business major with a strong emphasis on entrepreneurship.”

At the University of San Francisco, Joe intends to continue the business that qualified him for the NASE Future Entrepreneur scholarship – Volia Los Angeles.

Volia is a line of hats and T-shirts that combine the hip-hop, skateboard craze and urban lifestyle that are part of the Southern California culture for teens in the 21st century. The company has four employees, including Joe’s brother, Jeff, 15, who’s the venture’s top salesman and Joe’s lifelong friend D.J. Vilicich, who helped co-found Voila.

Joe’s father, Rick, is an NASE Member who owns his own CPA practice. The NASE scholarship program started in 1989 for dependents of NASE Members. In addition to the flagship Future Entrepreneur scholarship, the NASE also awards multiple $4,000 merit-based scholarships. In 2009, the NASE awarded these to 18 deserving students.

In honor of the program’s 20th anniversary, NASE Chief Operating Officer Keith Hall and Executive Director of Communications Maureen Petron traveled to Rancho Palos Verdes to present Joe with his award.

“Joe embodies the reason the NASE started the scholarship program 20 years ago,” Hall said. “Inspired by his small-business owner father, Joe had an idea, saw a market need, and created a company that he cares passionately about. We’re proud to reward that kind of ambition.”

Find out more about the NASE scholarship program, or log into your member account to apply online.

Micro-Businesses Offer Strong Opinions On Health Reform Proposals

NASE — Wednesday, 24 June, 2009 10:31:00 EST

For Immediate Release:

Contact:

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

Micro-Businesses Offer Strong Opinions On Health Reform Proposals

Businesses Support Private Insurance Over Federal Plan, Oppose Mandates

Washington, D.C., June 24, 2009 -- The nation’s entrepreneurs are ready for major changes to the American health care system, but are asking the federal government to implement various proposals to help them cope with the costs. When asked for the most important component of health reform, 60 percent of micro-business owners cited cost containment, even over access and choice. Nearly 2,000 micro-businesses, including members of the National Association for the Self-Employed (NASE), took part in this national online survey of their opinions on current health care reform proposals.

Most micro-businesses, companies with 10 or fewer employees, are closely following the health care debate. When asked how many had heard the term “public option” in relation to discussions surrounding reform, two-thirds indicated they were familiar with the term, and of those, 71 percent identified it correctly as “a health insurance program run by the government and open to anyone in need of health coverage.”

Most entrepreneurs are strongly opposed to a “public option.” Rather, they prefer a free market approach, wherein business owners can work with private insurance carriers instead of purchasing a federally managed plan. Seventy-one percent said that they would choose a private insurer when given the choice to purchase the exact same health insurance policy at the exact same price from either a private insurer or the federal government.

“Micro-businesses are distrustful of the federal government and its ability to manage health care,” commented Kristie Arslan, Executive Director of NASE’s Legislative Offices. “They continue to bear witness to how the government creates inequities in the tax code, increases red tape and poorly manages their budget. If the self-employed were to run their business in the same manner as the federal government, these entrepreneurs would have been out of business a long time ago. Likewise, business owners do not feel that they should put their health care in the government’s hands via a public health plan.”

When asked about various market reforms, micro-businesses were most supportive of these choices:

• Create an exchange or marketplace to facilitate the purchase of quality, affordable health coverage by allowing small businesses and individuals to easily compare and purchase the plans of their choice;

• Require health insurance carriers to provide health insurance to all those who apply regardless of their health status;

• Allow small businesses to group together via associations or organizations to purchase health insurance; and

• Create non-profit insurance cooperatives across the country, organized by the government but owned by the cooperative members, in which small businesses and uninsured individuals can purchase health coverage.

As health care costs continue to rise and the current system lacks equitable tax treatment of health care costs for the self-employed, micro-businesses are stronger than ever in their opposition to federally imposed mandates. Respondents were more amenable to the idea of mandates if they received a considerable subsidy, such as a health tax credit, that would help them defray costs.

According to Kristie Arslan, “the ailing economy makes it difficult for this segment of the business population to survive an employer or individual mandate. However, the micro-business community is willing to compromise and accept a mandate, if and only if it is accompanied by meaningful financial assistance.”

Other key findings:

• The top two health tax proposals favored by micro-businesses are providing tax credits to businesses and the self-employed to offset health care costs and reforming the tax treatment of health coverage so that, regardless of whether health insurance is purchased individually or accessed through an employer, the worker receives the same tax benefits.

• The majority of respondents were neutral on a recent suggestion of a cap on the employer exclusion. However, there were quite a few who strongly opposed such a cap.

• Half of all respondents strongly opposed the recommendation to make taxable money utilized from Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs) to pay for health costs. Currently these funds are tax-free. • When asked about a small business exemption to coverage mandates, 38 percent felt that using the number of employees as a benchmark was the right approach to determine the exemption. However, a number of respondents chose “Other” and indicated that an exemption should be made based on a combination of factors, such as number of employees and revenue.

Many survey respondents gave specific comments on the public option, mandates and other issues impacting the health care reform conversation. Here is a sample of perspectives received:

I do not think the government should become an insurer. I do think the government should regulate private insurers more.

I do not agree with the government mandating how businesses should run. They have been unsuccessful with their own budgets. What qualifies them to stipulate this to successful businesses?

The federal government would be too large and not specific enough to meet my individual needs. Plus, I believe strongly that the quality of care provided by the government would be worse.

Employers should not provide coverage. Let individuals subscribe to whatever plan they want and let employees take home money to purchase insurance instead of the employer purchasing for it for them. Individual needs are different.

I do not think the government should be able to pick and choose the businesses that are required to carry health insurance for their workers.

The federal government is doing a poor job with the health plans (i.e. Medicare and Medicaid) it controls now. Why would it be good to give them expanded control?

I would prefer that the government not be involved in providing my health care. However, I also cannot continue to provide health insurance on my own through private insurers if they continue to increase premiums at the current rate. If I could not afford private insurance, I would hope that there would be some other option rather than no insurance. If that is a government policy, then so be it.

Full survey results online at the NASE Research page.

NASE Members Receive Over $30,000 In Business Development Grants

NASE — Monday, 22 June, 2009 14:28:00 EST

For Immediate Release:

Contact:

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

Program Continues To Help Members Grow, Succeed

Washington, D.C., June 22, 2009 – Micro-business owners received a financial boost to their business in the first and second quarters, thanks to the National Association for the Self-Employed’s Business Development Grant Program. These NASE Members, with businesses as varied as a wedding photographer and a horse trainer, were awarded a total of $33,743 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 $350,000 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 first and second quarters of 2009:

Elizabeth Stultz of Elizabeth Stultz Photography in Windham, Maine
Jonathan Beck of JBS Multimedia in Huntington Beach, Calif.
Steve Huffman of Steve Huffman Training Stables in Nampa, Idaho
Susan Steele of Artistic Touch Studio in Gilbert, S.C.
Elizabeth and Scott Dupre of The Pagoda Vent Company in Kittery Point, Maine
Scott and Karen Logan of The Blue Mermaid Island Grill in Portsmouth, N. H.
Douglas Springer of Springers Gymnastics Center, LLC in Ellsworth, Maine

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

NASE Member Receives $30,000 Achievement Award

NASE — Thursday, 18 June, 2009 12:44:00 EST

For Immediate Release:

Contact:

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

NASE Member Receives $30,000 Achievement Award

Washington, D.C. (June 18, 2009) – Tiffany Washington, owner of Waldorf, Md.-based small business Washington Accounting Services, today received a $30,000 gift from the National Association for the Self Employed (NASE) in recognition of the excellent small-business practices she employed to catapult her start-up venture into a successful business.

As a member of the NASE, the 26-year-old CPA applied for and received a $3,000 Business Development Grant in October 2008 – part of $350,000 in grants given by the NASE in the last three years in response to members’ needs to access capital.

According to a recent NASE Member survey, 77% of America’s micro-business owners do not believe there are enough funding resources available. A majority of respondents reported having to use personal savings to start their businesses and identified a need for funding from associations and nonprofit organizations that provided grants and loans for small businesses.

Washington’s $3,000 Business Development Grant was used to purchase tax preparation software, office equipment and supplies for her then one-year-old start-up business. The grant also helped her to move out of a home office and into an office building that was more conducive to her clients. By the end of this year’s tax season, less than 6 months after receiving the grant from the NASE, Washington had quadrupled her income from the previous year. The tremendous impact she made with her grant prompted the NASE to select her out of 15 other grant recipients for a further financial reward of $30,000.

"The NASE Business Development Grant gave me confidence to pursue larger goals and take my business further," Washington said. "Now with this unbelievable Achievement Award, the possibilities are just endless."

“Tiffany serves other small businesses in her area in an important way by helping them make the most with their money,” said NASE Executive Director of Communications Maureen Petron. “And she sets a good example of making the most of her own business’ finances by looking for creative funding resources and then employing very smart business practices that grew her business into something she should be very proud of. We’re thrilled to recognize her achievement.”

Petron and NASE Chief Operating Officer Keith Hall presented Washington with a $30,000 check at a ceremony in the NASE’s Washington office. Also in attendance to celebrate her achievement were Washington's family and staff. High resolution photographs of the ceremony are available. E-mail koberlander@NASEadmin.org.

New NASE Membership Packages Give Access To Seven Top-Tier Health Insurance Companies, Free Prescription Drug Card And More

NASE — Monday, 8 June, 2009 13:00:00 EST

For Immediate Release:

Contact:

John Hearrell
(817) 251-6273
jhearrell@NASEadmin.org

Grapevine, Texas, June 8, 2009 -- During tough economic times, the National Association for the Self-Employed has introduced two new membership packages with additional benefits and opportunities to help micro-business owners save money on their business and health needs.

Most exciting in the new membership packages, called Gold and Silver, is the accessibility of health insurance options from a new partnership with Healthcare Solutions Team that provides access to seven health insurance companies: Assurant Health, UnitedHealthOne, Mutual of Omaha, Blue Cross Blue Shield of Illinois, United American, Humana and National Union. These respected companies offer a variety of products and plans customized to meet the special needs of micro-business owners and sole proprietors. With several companies offering customizable health options, there's a plan for everyone.

Also in the new Gold membership package is increased term life insurance of $20,000 for the primary member, $5,000 for the spouse, and $1,000 for dependent children. For Silver members, the term life amounts, included at no additional cost, are $10,000 for the primary member, $2,000 for spouse, and $500 for dependent children. Gold membership offers a per-occurrence automatic payment of $200 for ambulance usage.

A new NASE prescription drug discount card is also included in both new membership packages. NASE Members can save up to 55% on their prescriptions for their entire family. This card is included at no extra cost to the membership.

For their business, the new NASE Gold Membership includes free Web site design of up to seven pages of a new site, and free usage of an online contact database manager with integrated HTML e-mail and printing capabilities.

Online delivery of the NASE electronic HRA 105 plan is also now available. Members can simply mouse-click through www.NASEHRA105.com and have their tax advantaged health reimbursement arrangement in 60 seconds – and it's free for life of the membership.

To learn more about the new memberships, or to receive a free health insurance quote from any of the new partners, click here.

NASE Attends Obama Discussion On Small Business And Economy

NASE — Friday, 22 May, 2009 13:00:00 EST

For Immediate Release:

Contact:

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

Running a Business "Impressive In Any Year - But It's Especially Impressive This Year," President Say

Washington, D.C., May 22, 2009 -- President Barack Obama recently met with the National Association for the Self-Employed (NASE) and the National Small Business Award winners to discuss how the Administration's economic recovery efforts will benefit entrepreneurs. President Obama implemented initiatives earlier this year to make small business lending more attractive to financial institutions that have tightened their belt on credit and loans since the financial crisis.

Earlier this year, the Administration gave a shot in the arm to financial institutions and borrowers by raising guarantees on SBA loans to 90 percent and eliminating various borrower and lender fees. The President's budget proposal reduces the capital gains tax for investments in small or startup businesses and offers additional small business tax cuts.

"The place where you set up shop often isn't just your business address, but it's also your hometown, and sometimes it's your home. And I know what you do to give back -- sponsoring sports leagues and service projects, serving on boards, donating to charities, mentoring other small business owners to help them be as successful as you are," the President said. "So with all that you do for this nation, I think our nation's government should be there to support you -- to help you grow and expand and succeed."

The Administration has said that passing health care reform this year remains a top priority, since it would make coverage more affordable for all Americans and, especially, small business. Based on the NASE's 2008 health study, only one in five micro-businesses nationwide are currently providing employer-based coverage to full-time employees. The business owners cite the high cost of obtaining coverage as a major factor in that decision. Read remarks from the White House ceremony here.

"We look forward to assisting the President in his efforts to make doing business less costly for the nation's 22 million self-employed business owners," said Kristie Arslan, executive director of the NASE legislative office. "In particular, the NASE supports attempts to offer more affordable options for health care."

The NASE advocates for a self-employment tax deduction on health insurance premiums, health care tax credits and the expanded eligibility requirements that would allow the self-employed to participate in health reimbursement arrangements (HRAs). These small changes would drastically increase health care options for micro-businesses and the self-employed.

The NASE also continues to promote the development of tax compliance education programs, as well as more straightforward tax regulation in order to make filing tax forms less burdensome. In a March online member poll conducted by the NASE, micro-businesses indicated that simplification of the current tax system, including the minimization of tax forms and creation of easy-to-understand instructions, was a top desire for entrepreneurs.

Visit the Advocacy Web site to learn more about the NASE's legislative priorities.

National Small Business Week: May 18th - 22nd

NASE — Wednesday, 20 May, 2009 13:00:00 EST

For Immediate Release:

Contact:

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

NASE Offers "Pat On The Back" To Self-Employed And Micro-Businesses

Washington, D.C., May 20, 2009 -- According to the Small Business Administration (SBA), approximately 60 percent of Americans own or work for a small business. The National Association for the Self-Employed (NASE) is teaming up with the SBA again to sponsor National Small Business Week 2009. For forty-six years, one week has been set aside annually in order to honor the contributions of the nation's small business community.

"It has been a tough 12-18 months for the self-employed and micro-businesses," said NASE President Robert Hughes. "This year's Small Business Week, in particular, honors the established business who's fallen on hard times, as well as the new venture who just needs some help to get started."

Many activities surrounding this week focus on small business financing, which has grown especially difficult to navigate in the current economic climate. The NASE works with the SBA to help increase access to capital and lends our support to federal initiatives that have proven helpful to micro-business growth, such as the 7(a) and 507 loan programs. This summer, America's Recovery Capital (ARC) loans are expected to be widely available to businesses. The new financing method carries no interest for the borrower and are 100 percent guaranteed by the SBA.

"These ARC loans can provide the critical capital and support many small businesses need to make it through these tough economic times," said SBA Administrator Karen G. Mills. "Together with other provisions of the Recovery Act, ARC loans will free up capital and put more money in the hands of small business owners when they need it the most. This will help viable small businesses continue to grow and thrive and create new jobs in communities across the country."

For more information, please visit http://nationalsmallbusinessweek.com/.

Details on America's Recovery Capital loans can be found at www.sba.gov.

Dear Congress, Please Take It Easy On The Small-Business Owner

NASE — Friday, 8 May, 2009 13:00:00 EST

For Immediate Release:

Contact:

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

Simplified Tax Forms Would Free 60 Hours For Entrepreneurs

Washington, D.C., May 8, 2009 -- A self-employed taxpayer, who files the Form 1040 with corresponding Schedule C, will spend nearly 60 hours and $440 dollars to complete the return, according to the Internal Revenue Service (IRS). To help remedy that, the National Association for the Self-Employed (NASE) spoke with members of Congress today about how small businesses would benefit from a reduction in the complexity and amount of their tax paperwork.

Micro-businesses are often bogged down with complexity of the tax code and tax forms. The NASE's National Tax Advisor Keith Hall named four steps the federal government could take to help: 1) the Internal Revenue Service's adoption of more simplified, "plain English" forms and documentation; 2) the establishment of a standard home office deduction; 3) clarification of the definition of an independent contractor; and 4) allowing sole proprietors to deduct their health insurance premiums in the same manner as larger corporations.

"The IRS's Office of Burden Reduction has implemented many positive changes by making IRS.gov more accessible to business owners and information much easier to obtain," Hall said. "We would like to keep that momentum going by asking Congress to approve current legislation that would simplify the tax code. Two examples would be the creation of a $1,500 standard home office deduction, and allowing small businesses to deduct the cost of their health insurance premiums as a business expense."

In March, President Obama announced that he was establishing a task force that would raise revenue by narrowing the tax gap, or the difference between what the I.R.S. collects annually versus what it is owed. In the past, small business taxpayers have been blamed for a large portion of the tax gap. Hall urged the committee to consider the effect that any new legislation could have on the nation's entrepreneurs.

See highlights of Keith Hall's testimony on YouTube.

Track the progress of current legislation that would help micro-businesses and the self-employed by visiting advocacy.NASE.org.

Consumer Credit Card Protections Bill Passes House, Heads To Senate

NASE — Wednesday, 6 May, 2009 13:00:00 EST

For Immediate Release:

Contact:

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

Consumer Credit Card Protections Bill Passes House, Heads To Senate

Washington, D.C., May 6, 2009 -- The Government Accountability Office (GAO) reports that one-fifth of those carrying credit card debt pay an interest rate above 20 percent. The prevalence of credit cards with high interest rates and fees has prompted lawmakers to pass legislation that could affect the credit card statements of millions of Americans.

In a bipartisan vote, the U.S. House of Representatives has approved the Credit Cardholders' Bill of Rights (H.R. 627), which puts tougher restrictions on the ability of credit card companies to increase their interest rates and use practices such as double-cycle billing. The bill also requires that companies notify consumers 45 days before a rate increase and explain at that time how the change will affect an existing balance.

"This is one more step in our efforts to assist responsible, hardworking Americans who should not be subjected to these practices at any time, much less during a recession," said House Majority Leader Steny H. Hoyer (MD). "As we work to protect consumers, I look forward to working with the Senate to get this legislation to the President's desk for a signature as soon as possible."

The measure is set to be debated in the Senate this week, where a stricter version drastically restricts the ability of card companies to raise rates on late-payers or those with shaky credit histories. At the request of the White House, the following measures – which are already included in the Senate bill – were included in the House legislation:

- Requirement that payments must first be applied to the debt with the highest interest rate;
- Mandatory annual review by the Federal Reserve to assess the effects of the bill on interest rates, annual fees and denial of new credit cards;
- On each bill, companies must disclose the long-term costs of paying only the minimum balance;
- Promotional rates on new cards must be valid for a minimum of six months;
- Terms of the credit card agreement are to be posted on the card issuer's Web site.

The National Association for the Self-Employed (NASE) commends the House of Representatives on the passage of this important consumer protections bill. Unfortunately, the self-employed and micro-business owners who use small-business credit cards are not shielded in the House-passed legislation. It is the hope of the NASE that language will be included in the Senate version to extend these safeguards.

Senate Confirms Sebelius as HHS Secretary

NASE — Wednesday, 29 April, 2009 13:00:00 EST

For Immediate Release:

Contact:

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

Self-Employed Turn An Eye Toward Washington As Health Reform Takes Shape

Washington, D.C., April 29, 2009 -- As conversations on swine flu and health care reform heat up, the final vacancy in Present Obama's Cabinet, the secretary for the Department of Health and Human Services (HHS), has been filled. The Senate voted to confirm Kansas Gov. Kathleen Sebelius, President Obama's second nominee for the position; the President's first nominee, former Senate Majority Leader Tom Daschle (D-S.D.) withdrew his nomination after a number of unresolved tax issues with the I.R.S. surfaced.

Sebelius will lead the department responsible for the government's largest health programs, including Medicare and Medicaid, and control a budget of over $600 billion. Perhaps the biggest responsibility for Sebelius this year will be to work with Nancy-Ann DeParle, director of President Obama's Office of Health Reform, to overhaul the nation's health care system, a project for which his budget set aside $634 billion over 10 years.

Access to quality, affordable health care is a top legislative priority for the National Association for the Self-Employed (NASE). According to a 2008 survey on health care reform, nearly 85 percent of micro-business owners support a system that provides coverage for all Americans. However, respondents differ on the structure of that system; nearly 23 percent prefer the current system, 25.4 percent support a government-run system requiring every American to purchase coverage, and 24.5 percent favor a government-run system paid for through taxes.

Sebelius was confirmed by the full Senate by a vote of 65-31. Some Republicans, however, expressed concerns about Sebelius' strong support for abortion rights and her support for the administration's policy of comparative effectiveness research.

Senators of both parties overlooked errors on Sebelius' 2005 and 2007 tax returns and some underreported campaign contributions now that she has corrected both issues. Sebelius has been governor of Kansas since 2002, and was the state's insurance commissioner for eight years before becoming governor.

Read more about the NASE's advocacy efforts concerning affordable coverage for micro-businesses and their families here.

Last Minute Small Business Tax Tips From NASE National Tax Advisor, CPA

NASE — Monday, 6 April, 2009 01:00:00 EST

For Immediate Release:

Contact:

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

Entrepreneurs Expected To File Over 20 Million Returns For 2008

Washington, D.C., April 6, 2009 -- With Tax Day next week, is your return gathering dust in your home office? The National Association for the Self-Employed (NASE) has one piece of advice – take a deep breath.

"If you are running behind this year, there is no need to panic," said Keith Hall, NASE's National Tax Advisor. "As long as you have all of your paperwork gathered in one place before starting and take the time to check your math, you'll likely have no problem getting your return filed by April 15th."

Hall offers these last minute tax tips for small-business owners who are starting to sweat:

- Check for hidden deductions: There are a number of deductions that small-business owners and the self-employed forget when filing taxes. If you work out of your home, your office may qualify for a deduction. Do you drive to the post office or a client site? Those miles may add up to a sizable deduction too.

- Retirement Savings: Retirement savings, such as SEP contributions and IRA deposits, are deductible for last year's tax return up until April 15, 2009. That means you can count money deposited into these accounts, up until the day you file your 2008 tax return. In the case of SEP contributions, those can even be made up until an extended due date, as late as October 15th.

- Filing Date: If, despite all your rushing around, you still can't make the April deadline, relax. All tax filers can get an automatic 6-month extension by filing Form 4868 by April 15th, which you can download from the IRS Web site at http://www.irs.gov/. However, an extension of time to file is not an extension to pay. If you do not send the IRS what you think you owe, you'll be stuck with late fees and interest.

- Proofread the form: Most of the mistakes on tax returns are simple addition and subtraction errors. Check your math. Then, check your math again.

- Start thinking about next year: While micro-business owners may be tempted to finish their return and not think about taxes again until next year, now is a great time to reflect on how to reduce your 2009 tax liability. Consider deductions for a home office or employing your children; create a health reimbursement arrangement, which would enable the business to reimburse bona fide employees for all out of pocket medical expenses; reconsider the tax implications of incorporating your business; and research retirement plans designed specifically for the self-employed, including an IRA, SIMPLE, SEP, Single 401(k), and Keogh plan.

- Look for help: Sole proprietors doing their own taxes can find help from a number of sources, including the NASE's Tax Resource Center [tax.NASE.org], where you can ask the NASE's expert CPAs a question and hear back within a few business days. You can find Schedule C from A to Z, a line-by-line guide for completing the tax form Schedule C, available online at http://www.NASE.org. The IRS also offers a Web site (http://www.irs.gov/) and toll-free help line, 1-800-829-1040, for your tax questions.

Ramped Up Task Force Could Focus On Micro-Business Tax Compliance

NASE — Wednesday, 1 April, 2009 01:00:00 EST

For Immediate Release:

Contact:

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

Lawmakers Have Blamed Small Businesses For Large Portion Of Uncollected Taxes

Washington, D.C., April 1, 2009 -- The Obama Administration recently announced its plans to step up the search for noncompliant taxpayers as one method for offsetting a massive budget designed to help shore up economic losses for the nation. A newly formed Task Force on Tax Reform will concentrate on the tax gap – a $300 billion difference between what the Internal Revenue Service is owed and what it collects.

"The Task Force on Tax Reform that will be formed...will be examining ways of being even more aggressive on reducing the tax gap, which could provide funding for tax provisions, including an extension of the Making Work Pay tax credit," said Peter Orzag, Office of Management and Budget Director.

In the past, lawmakers have pointed to underreporting by the self-employed as a significant contributor to the tax gap, a claim the NASE has worked hard to refute. The association has countered that an effective strategy to increase tax compliance should include overall simplification of the tax code, the elimination of issues that are inequitable to entrepreneurs, and greater access to reliable taxpayer education and outreach, not just an increase in enforcement activities.

Under the Bush Administration and the previous Congress, tax gap proposals placed an undue burden on micro-businesses. Those included imposing withholding on non-employee payments, specifically payments made to independent contractors; requiring information reporting on all payments of $600 or more to corporations; and demanding businesses that utilize contractors to obtain and verify an accurate Taxpayer Identification Number (TIN) for those contractors receiving payments of $600 or more.

Kristie Arslan, Executive Director of the NASE's Legislative Offices, testified before the House Committee on Small Business last year against the annual reporting of electronic payment transactions to the IRS. Although some have supported this measure as a solution to the tax gap, the NASE is opposed to this legislation because of the increased tax regulation it places on small businesses and because it likely would not boost tax compliance.

While the NASE believes the IRS should be able to collect all the money owed, increasing the burden on micro-businesses is not the most effective way to increase compliance. A strategy to increase tax compliance should include overall simplification of tax code, the elimination of issues that are inequitable to entrepreneurs, and greater access to reliable taxpayer education and outreach.

Visit the NASE in Action page to read recommendations on how to increase tax compliance without burying the nation's entrepreneurs under burdensome regulations.

NASE Highlights Need For Comprehensive Health Reform

NASE — Wednesday, 25 March, 2009 14:07:00 EST

For Immediate Release:

Contact:

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

"Cover The Uninsured Week" Bring Awareness Of Health Options For Children and Families

Washington, D.C., March 25, 2009 -- The National Association for the Self-Employed (NASE) joins business owners, organizations, educators and others who are banding together to raise awareness for Cover the Uninsured Week. This week marks the seventh year of the initiative under the Robert Wood Johnson Foundation. It focuses on demonstrating support for programs that seek to provide health insurance for the nine million children living without coverage, like the State Children's Health Insurance Program (SCHIP).

According to a recent online poll by the NASE, one quarter of micro-business owners are currently uninsured, and almost three-quarters (71 percent) have been uninsured at some time. Cost seems to be the main barrier to insurance for the self-employed and micro-business owners, with 29 percent of currently uninsured respondents citing "cost/affordability" as the main reason they were without health insurance. Forty-four percent indicated that the main reason they had been uninsured at some point in time was because they were unable to afford premium costs.

While corporations are able to deduct health insurance premiums as a business expense and forego FICA (Social Security and Medicare) taxes on these expenses, the self-employed are not. The Equity for Our Nation's Self-Employed Act (H.R. 1470), introduced earlier this month, would eliminate this double digit disparity in the tax code, which inhibits the self-employed from receiving a full deduction for health insurance costs.

SCHIP was formed to assist children from low-income families in gaining access to health insurance. But even among those parents who received employer-sponsored coverage, rising health care costs mean many cannot afford their portion of the premiums.

To search for Cover the Uninsured Week events by state, go to http://covertheuninsured.org/events/. For more information on making smart health care choices, visit the NASE-sponsored site, http://health.NASE.org.

NASE Lauds Home Office Deduction Simplification Act

NASE — Friday, 20 March, 2009 01:00:00 EST

For Immediate Release:

Contact:

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

Schedule C Filers Would Receive $1,500 Standard Deduction

Washington, D.C., March 20, 2009 -- Business owners who work out of an office in their homes could save an additional $1,500 on their taxes next year. Legislation introduced by Congressman Kurt Schrader (D-OR), Chairman of the Finance and Tax Subcommittee of the House Small Business Committee, and Congressman John M. McHugh (R- N.Y.) would make it easier for home businesses to deduct office expenses by offering a $1,500 standard deduction to eligible taxpayers. The Home Office Deduction Simplification Act (H.R. 1509) would also require that the amount be indexed for inflation.

"We need to do everything in our power to make small businesses a central part of our economic recovery," said Schrader. "This bill will streamline the tax process that often puts an undue burden on entrepreneurship. The increased use of the home office deduction will also allow small businesses to put these savings back into the economy. That means hiring more workers, expanding their businesses, and helping rebuild our economy.

Many business owners cite complexity of the criteria to qualify as too cumbersome to follow; others also cite a fear being audited as their reason to avoid the deduction. The NASE has advocated for the simplification of the tax code for many years; three in five micro-business owners had never utilized the current home office deduction said the option of a standard deduction would encourage them to take it.

"The ability to choose a standard deduction would remove the top barriers for home business owners – being confused by the qualification criteria and being scared they'll be red-flagged for an audit," said Kristie Darien, executive director of the NASE legislative office. "Congress has taken an important step with this legislation that allows qualifying home-based businesses to more easily employ this tax benefit. Too many sole proprietors have shied away from taking the home office deduction despite being eligible for it."

The option of a $1,500 standard deduction would not preclude taxpayers currently qualifying for the home office deduction from continuing to itemize their expenses should they choose. The Home Office Deduction Simplification Act would simply offer a taxpayer-friendly way to take the deduction. Additionally, if passed by Congress, it would significantly minimize the paperwork and time spent on tax preparation for entrepreneurs managing their business out of their home.

House Members Work For Tax Fairness For Self-Employed

NASE — Wednesday, 18 March, 2009 14:12:00 EST

For Immediate Release:

Contact:

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

Bill Would End FICA Tax On Health Insurance Premiums, Reducing Cost Of Health Care for Self-Employed

Washington, D.C., March 18, 2009 -- Recently introduced federal legislation would level the playing field for 21 million self-employed Americans by ending a significant double-digit disparity in taxes paid on health insurance that has contributed to the growing health care crisis. The Equity for Our Nation's Self-Employed Act (H.R. 1470), introduced in the House of Representatives by Reps. Wally Herger (R-CA), Ron Kind (D-WI), Suzanne M. Kosmas (D-Fla.) and David G. Reichert (R-WA) would eliminate an inequity in the tax code that inhibits the self-employed from receiving a full deduction for health insurance costs.

"We ought to be encouraging sole proprietors, not penalizing them. Yet the tax code currently does just that," said R. Michael Beene, Senior Health Policy Expert and General Counsel for the NASE. "This bill puts the self-employed on equal footing with other American businesses, addresses an area that has too many uninsured individuals and families and rights a wrong at a time when we most need it. On behalf of the NASE and its 200,000 members we offer our full support."

In addition to leveling the playing field for our nation's smallest businesses, this legislation would assist in making health care more affordable for millions of self-employed Americans who currently make up a substantial number of the working uninsured. Today, more than 60 percent of the 47 million uninsured Americans are from families working for a small business or headed by a self-employed individual. In a 2008 NASE study, more than 65% of micro-businesses cite cost as the single most significant barrier to offering health insurance to employees.

Payment of Self-Employment Tax on Premiums

The tax code technicality resulting in the health-care cost inequality lies in the payment of self-employment tax on health insurance premiums. While corporations are able to deduct health insurance premiums as a business expense and to forego FICA (Social Security and Medicare) taxes on these expenses, sole proprietors are unable to deduct premiums and are required to pay an additional 15.3 percent self-employment tax on these costs.

Studies have indicated that on average in the United States a self-employed individual pays $12,106 annually in health insurance premiums for family coverage. Since owners are unable to deduct their premiums as a business expense, as larger businesses do, they have a higher self-employment (FICA) tax liability. In this case a sole proprietor would be paying an additional $1,852.22 (15.3 percent) in taxes.

NASE Member John Rutledge is from Ruther Glen, Virginia and owns a real estate title research company. He pays an additional $1,652.00 in taxes annually on his health costs and can think of many other uses for the money. He remarks, "I could hire an office assistant to assist with some of the day-to-day administrative functions of the business or an IT professional to guide our expansion. We could easily double our outcome with this help."

Curious about previous legislation on this issue or how the self-employment tax is calculated? Visit NASE Advocacy online.

Tax Resource Center: Interactive Tax Calculators, Schedule C Planning Tool And More

NASE — Sunday, 15 March, 2009 11:33:00 EST

For Immediate Release:

Contact:

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

NASE Web Site Streamlines Filing Process For Micro-Businesses

Washington, D.C., March 15, 2009 – With about six weeks left to go before Tax Day, many entrepreneurs are in the thick of working to meet the April 15th tax deadline. Micro-businesses – those with 10 or fewer employees – routinely rely on timesaving tax assistance provided by the National Association for the Self-Employed (NASE) through the online Q &A TaxTalk program. Now, the NASE’s new Tax Resource Center makes it less complicated for businesses to file their return with easy-to-use tools that are written in plain English.

Each year, small-business owners spend countless hours working through their forms and calculations. In a recent online chat hosted by The Washington Post, NASE National Tax Advisor Keith Hall suggested filers refer to the Tax Resource Center and IRS.gov for information about tax deductions they may have overlooked.

“Perhaps the most common one is the home office deduction. It is easy to miss deductions for a home office since the expenses don't show up in the business checkbook. Check out IRS Pub 587 for more detail. One other deduction to keep in mind is available options for retirement planning, IRAs, SEPs, etc. No one will remind you to invest in your own future, so don't forget,” said Hall.

At the Tax Resource Center, micro-business owners can find the following information:

Resources – Learn more about the NASE’s Quick Tax Calculators, Schedule C Planning Tool and Interactive Tax Calendar.
NASE TaxTalk – Submit a tax question online and get knowledgeable answers from Keith Hall and other qualified Certified Public Accountants. While there, sign up for an NASE TaxTalk Seminar, which offers close access to a CPA specializing in tax issues affecting the self-employed.
Home Office Central – Find helpful how-to articles to make the most of a home-based business.
Find A Professional – Locate a Certified Public Accountant through the American Institute of Certified Public Accountants.
NASE Media – Watch or download tax advice from Keith Hall and browse the TaxTalk resource library.

Premium Costs A Barrier To Insurance For Micro-Business

NASE — Tuesday, 10 March, 2009 18:57:00 EST

For Immediate Release:

Contact:

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

One Quarter Of Entrepreneurs Currently Uninsured

Washington, D.C., March 10, 2009 -- High health insurance premiums and other health care costs are forcing many small businesses owners to go without health insurance. In a recent online poll by the National Association for the Self-Employed (NASE), a quarter of respondents were currently uninsured, and almost three-quarters of respondents (71 percent) have been uninsured at some time.

Cost seems to be the main barrier to insurance for the self-employed and micro-business owners, with 29 percent of currently uninsured respondents citing "cost/affordability" as the main reason they were without health insurance. Forty-four percent of respondents indicated that the main reason they had been uninsured at some point in time was because they were unable to afford premium costs.

Close to half of survey respondents (41 percent) indicated that they would be most encouraged to purchase health insurance if insurance premium costs became more affordable. Eleven percent of respondents also indicated that they would be more likely to purchase health insurance if they could obtain insurance regardless of health status.

Methodology:
Posted in the members-only portal on the NASE Web site and advertised in the NASE's eNewsletter, the survey was available for members to take in February 2009. Over 240 NASE Members opted-in to the non-scientific survey and members were prohibited from taking it more than once.

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.

NASE Takes Tax Advice To Micro-Business Owners' Communities

NASE — Tuesday, 10 March, 2009 18:55:00 EST

For Immediate Release:

Contact:

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

TaxTalk Seminars Will Reach Seven Cities in 2009

Washington, D.C., March 10, 2009 -- When it comes to navigating business taxes, micro-business owners need easy-to-understand, reliable resources that can help them file. That's why the National Association for the Self-Employed is bringing tax advice to members in their own communities.

Following the success of the Tax Seminars with National Tax Advisor Keith Hall in 2007 and 2008, the NASE is traveling to seven cities across the country this March to share micro-business tax strategies and to bring together fellow NASE Members.

Topics include:
• Finding hidden deductions
• Employing a spouse or child
• Learning Tax Code changes for 2008
• And more

Join the NASE for a networking breakfast, and learn valuable tax strategies before filing. This small-group, two-hour seminar offers close access to a CPA specializing in taxes affecting the self-employed.

Enjoy breakfast and networking with fellow micro-business owners in these cities:

• Monday, March 16: Boston, Mass.
• Wednesday, March 18: Minneapolis, Minn.
• Thursday, March 19: Pittsburgh, Pa.
• Friday, March 20: Arlington, Va.
• Monday, March 23: Oakland, Calif.
• Tuesday, March 24: Denver, Colo.
• Friday, March 27: San Marcos, Texas

All attendees receive a free copy of Schedule C from A to Z, a line-by-line guide to filing the tax form for sole proprietors and the chance to win a Portable Navigation System. One awarded at each seminar!

Small Business Worker Classification: Independent Contractor Or Employee?

NASE — Thursday, 26 February, 2009 11:33:00 EST

For Immediate Release:

Contact:

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

IRS Sets Important Distinctions Come Tax Time

Washington, D.C., February 26, 2009 – The federal government reports that 70-80% of all new jobs are created by small businesses – congratulations to the nation’s self-employed for being major contributors to the economy! The question is, by hiring additional workers, are micro-businesses (those with 10 or fewer employees) actually creating more paperwork for themselves?

As a firm grows, many business owners decide to begin using other workers to help manage the needs of new and existing clients. At that point, the business owner must determine the tax classification for the new position he or she just created. Many small businesses think that this distinction is a matter of choice. Not so, says the Internal Revenue Service (IRS).

It is extremely important to know the classification of your workers and to make sure you pay them correctly and then report those payments correctly to the IRS at the end of the year. The IRS actually uses a multi-step checklist to evaluate whether a person is an employee or an independent contractor. If you are unsure whether to classify your newest worker as an employee or an independent contractor, here is a quick way to sort them out:

If you control the Who, Where, When and How the work is done, then they are probably an employee. This means that you, as the business owner, must file a Form W2, withhold income and payroll tax, and potentially contribute to their retirement plans.
If the worker controls their own work product and even has other customers besides you, then they are most likely independent contractors. They are responsible for their own forms, including Schedule C, Profit or Loss from Business; Schedule SE, Self Employment Tax and Form SS-4, Application for Employer Identification Number.

This is certainly a complicated issue and a very important one as small businesses continue to create jobs. For more details on how to classify a worker, visit the IRS online where you can download Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.

The National Association for the Self-Employed (NASE) also offers free micro-business tax advice from certified public accountants through TaxTalk. Submit your question and receive an answer in about two business days here.

Main Street Businesses Receive Nod In Stimulus Bill

NASE — Friday, 20 February, 2009 11:33:00 EST

For Immediate Release:

Contact:

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

Working Individuals Receive $400 Per Person Tax Credit; Small Business Expensing Limits Expanded

Washington, D.C., February 20, 2009 – President Barack Obama recently signed his first major piece of legislation since taking office – a $787 billion economic recovery package that morphed from an idea to a bill on the president’s desk in about a month and a half. According to the Joint Committee on Taxation, it contains over $290 billion in aid for states, provisions for energy efficient technology, increased benefits for the unemployed, spending on infrastructure and more.

The National Association for the Self-Employed (NASE) is a nonpartisan organization that occasionally offers policy recommendations to encourage the ability of start up businesses and current entrepreneurs to succeed in today’s economy. For the past several years, the NASE has advocated for tax offsets that would allow greater equipment expensing for micro-business owners. The Senate Finance and House Ways and Means Committees, two Congressional bodies in charge of taxation and revenue, released the following details on tax incentives for families and small businesses:

Making Work Pay Credit: The bill provides a $400 credit per worker and an $800 credit per double-earner couple. Those making $75,000 or less for individuals or $150,000 or less per couple would be eligible for the credit. Individuals earning above the requirement but no more than $100,000 ($200,000 for couples) would be eligible for a partial credit.
Depreciation costs: Allows a business to write off expenses for new capital equipment. Half the cost of these purchases made in 2009 is permitted if the equipment is used this year. A fixed depreciation schedule would apply to the rest of the cost of the purchase.
Temporary deduction for new automobiles: Eligible taxpayers who purchase a new car, light vehicle, recreational vehicle or motorcycle in 2009 will be permitted to deduct state and local sales taxes and applicable excise tax. This deduction applies to those earning less than $125,000 or less than $250,000 for joint filers.
Loss write-offs: Small-business owners will be permitted to expand the "net-operating loss carryback" to five years for businesses with gross revenue of $15 million or less. The current allowance is two years. Eligible businesses would also be permitted to apply 2008 losses to past and future tax bills.
Temporary Reduction of S Corporation Built-In Gains Holding Period from 10 Years to 7 Years. Under current law, if a taxable corporation converts into an S corporation, the conversion is not a taxable event. The bill adds a provision that, in the event that such a conversion occurs in 2009 or 2010, an S corporation must hold its assets for seven years – down from 10 – in order to avoid a tax on any built-in gains that existed at the time of the conversion.
Delayed Recognition of Certain Cancellation of Debt Income. Under current law, a taxpayer generally has income where the taxpayer cancels or repurchases its debt for an amount less than its adjusted issue price. The amount of cancellation of debt income (“CODI”) is the excess of the old debt’s adjusted issue price over the repurchase price. Certain businesses will be allowed to recognize CODI over 10 years (defer tax on CODI for the first four or five years and recognize this income ratably over the following five taxable years) for specified types of business debt repurchased by the business after December 31, 2008, and before January 1, 2011.

“It is unfortunate that Congress was unable to add a provision that would give micro-businesses the option of a standard home office deduction – a small change that would have helped these firms save thousand of dollars each,” said Keith Hall, NASE National Tax Advisor. “However, we are encouraged by the number of tax incentives that will directly affect business owners by putting more money in their pockets.”

Visit the NASE Advocacy Web page to keep up-to-date on this and other micro-business legislation.

Micro-Businesses Turn To Federal Outreach Programs

NASE — Wednesday, 18 February, 2009 11:32:00 EST

For Immediate Release:

Contact:

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

Over 25% Of Entrepreneurs Utilize Services Offered By The Federal Government

Washington, D.C., February 18, 2009 – The self-employed are speaking out about their support for federal small business programs and hoping the Obama Administration is listening. In a recent online poll by the National Association for the Self-Employed (NASE), an overwhelming majority of business owners (80%) want the new president to improve and expand existing federal small business programs.

Over one-quarter of entrepreneurs have utilized services offered by the federal government, despite the dwindling resources of many small business programs. For years, the NASE has been a supporter of federal outreach that consistently and effectively aids the self-employed and micro-businesses community. Funding for SBA programs, such as Women’s Business Centers and Small Business Development Centers (SBDCs), has faced drastic cutbacks over the past several years.

As indicated by the poll, the most popular programs offered by the federal government are the SBA Business Loans (Basic 7(a) loan, Micro-Loan, 504 loan), SBDCs, SCORE (Service Corps of Retired Executives) and Women’s Business Centers.

Methodology:
Posted in the members-only portal on the NASE Web site and advertised in the NASE’s eNewsletter, the survey was available for members to take in January 2009. About 200 NASE Members opted-in to the non-scientific survey and members were prohibited from taking it more than once.

NASE Supports Introduction Of Small Business CHOICE Act Of 2009

NASE — Monday, 9 February, 2009 11:32:00 EST

For Immediate Release:

Contact:

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

Bill Would Help Stabilize Health Insurance Costs for Self-Employed

Washington, D.C., February 9, 2009 – The National Association for the Self-Employed (NASE) commends the introduction of the Small Business “Cooperative for Healthcare Options to Improve Coverage for Employees Act of 2009” (Small Business “CHOICE” Act). The bi-partisan health care legislation would increase access to comprehensive health insurance and help alleviate the instability of insurance premium costs.

“As Ranking Member of the Small Business Committee, I have seen firsthand the need for this bill. The bill tackles two of the most significant challenges facing small employers – the high cost of providing comprehensive health insurance and the volatility of insurance premiums,” said Rep. Sam Graves (R-MO).

The “CHOICE” Act would allow small businesses to form health insurance cooperatives governed by state laws. These cooperatives, similar to risk pools, would provide insurance against high-cost claims. The bill also offers a refundable tax credit to small businesses that choose to join a cooperative. The tax credit would cover 65 percent of the cost of insurance for small businesses with fewer than 100 employees that also offered a small business wellness program consisting of lifestyle management and wellness tools. The bill would also help self-employed individuals save up to $5,000 per year on health coverage costs

“The NASE strongly supports the CHOICE Act of 2008,” said Kristie Darien, executive director of the National Association for the Self-Employed’s legislative office. “We believe that this bill would help alleviate the massive financial burden that the current health care system places on micro-business.”

According to a 2008 NASE study, the percentage of micro-business owners who offer a plan that covers all or some of their full-time employees dropped significantly, from 46.2% in 2005 to only 18.6% in 2008. Three-quarters of micro-business owners also report that they have seen the cost of health coverage increase by an average of 14.7% over the past 12 months.

NASE To Congress: Health Care Costs For Micro-Business Must Be Addressed

NASE — Thursday, 5 February, 2009 11:32:00 EST

For Immediate Release:

Contact:

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

NASE Senior Health Advisor Highlights Health Reform Proposals Beneficial To Self-Employed

Washington, D.C., February 5, 2009 – As discussions on health reform progress in the 111th Congress and within the Obama Administration, the National Association for the Self-Employed (NASE) is speaking out about how the ability of micro-business owners to obtain quality coverage rests on two key components: affordability and choice. The cost of health coverage for micro-businesses plays a significant role in why so many self-employed business owners go without or purchase a minimum coverage policy.

Michael Beene, NASE Senior Health Advisor, informed members of Congress that, according to a 2008 NASE study, micro-businesses are spending a median of 5.5% of their total sales on health insurance benefits. That number has increased by nearly half (48.6%) since 2005.

“The escalation of health costs is most strongly felt by solo practitioners, who are spending more of their total sales on health insurance compared to three years ago,” he commented before the House Committee on Small Business. “With such a large percentage of revenues going to health coverage, we can see why this expenditure is one of the first to be decreased or cut when business owners are faced with hard economic times.”

Premium costs are the single most important factor that determines whether a business owner will insure himself and provide coverage for his or her employees. Most importantly, if a micro-business owner cannot afford insurance for himself and his family, it is not likely that that health benefits will be extended to employees.

Beene mentioned the following proposals to make health coverage more affordable to the self-employed and micro-business:

Self-Employment Tax Deduction on Health Insurance: According to the IRS, there are approximately 21 million sole-proprietors in the United States. Currently, these self-employed business owners do not receive a full deduction for their health insurance costs. Employees and the owner pay for their health insurance premiums pre-tax, and therefore they are not subject to FICA taxes. However, a sole-proprietor’s premiums are not paid with pre-tax dollars and are exposed to the 15.3% self-employment tax. In these difficult financial times, removing this inequity would be a significant economic stimulus for the self-employed.
Health Reimbursement Arrangements (HRAs): HRAs are a flexible benefit option that allows small business owners to reimburse employees for out-of-pocket medical costs, including health insurance premiums. At present, self-employed persons are not eligible to participate in an HRA. Expansion of HRAs to allow the self-employed business owner to take part in the plan would likely significantly increase the number employees of micro-businesses receiving health benefits and financial assistance with medical costs. Additionally, HRA annual reimbursement amounts would likely be more generous if the self-employed owner receives the same benefit.
Health Tax Credits: These incentives would assist owners and individuals employed in businesses that do not have employer-sponsored health plans to afford health insurance. An effective tax credit must be advanceable, allowing eligible individuals to receive their credit every month, rather than in a lump sum at the end of the year, to let them buy coverage without incurring extensive costs during the year. The credit should also be refundable, allowing individuals that do not pay income taxes but are subject to payroll taxes to be eligible to receive the credit as a refund from the Internal Revenue Service.

Beene also addressed the effect that individual/employer mandates may have on health insurance affordability. An employer mandate to purchase and provide health coverage that does not exempt micro-business, those with ten or less employees, would be destructive to this important sector of the economy. Based on NASE’s 2008 health study, only one in five micro-businesses nationwide are currently providing employer-based coverage to full-time employees. Consequently, an employer mandate would put millions of owners out of business and leave millions of workers unemployed.

For more information, view the NASE’s full comments or see the hearing on YouTube.

House Passes Obama’s $819 Billion Stimulus Package

NASE — Monday, 2 February, 2009 11:32:00 EST

For Immediate Release:

Contact:

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

Micro-Business Receives Modest Benefits from Bill

Washington, D.C., February 2, 2009 – In the first legislative success during his short tenure in office, the U.S. House of Representatives approved President Barack Obama’s sweeping economic stimulus plan, largely along party lines. The bill, the American Recovery and Investment Act of 2009 (H.R. 1), includes $524 billion in spending and $275 billion in tax cuts, among other expenditures.

The two-year plan provides a “Making Work Pay” tax credit of up to $500 for working individuals and $1,000 for working couples, an expansion of the child tax credit and Earned Income Tax Credit, and additional funding for alternative energy research and development efforts. It would also provide over $300 billion in state aid to modernize schools, cover the uninsured and rebuild interstates and bridges.

“I know that there are some who are skeptical of the size and scale of this recovery plan. And I understand that skepticism, given some of the things that have happened in this town in the past,” the president said in a statement on Thursday. “That's why this recovery plan will include unprecedented measures that will allow the American people to hold my administration accountable.”

Additional small business provisions include an extension of small business expensing limits – currently set at $250,000 – through 2009 and a $15 billion provision that would allow businesses to use their losses in 2008 and 2009 to offset profits from five previous years instead of the two allowed under current law. Regardless of President Obama’s appeals to House Republicans, none lent their support; however, there were enough votes by Democrats to ensure the bill’s passage. Previously, three GOP amendments to the package were shelved, including a measure intended to cut individual and business taxes. The House-passed bill will head to the Senate this week where continued debate is expected over additional tax cuts.

The National Association for the Self-Employed (NASE) supported the above small business provisions, however we continue to strongly encourage Congress to include more micro-business focused provisions in the economic stimulus package. NASE recommendations include:

Making permanent the individual income tax rate cuts from 2001 and 2003;
The creation of a $1,500 standard home office deduction option;
Increased funding and improvements to SBA loan programs;
A self-employment tax deduction on health insurance for sole-proprietors;
The creation of a health care tax credit for individuals and small businesses.

“The NASE agrees that action must be taken by our government to address this economic crisis,” said Kristie Darien, executive director of the NASE’s legislative office. “However, we feel the economic stimulus packages put forth by Congress and the Administration need to include more substantive provisions assisting America’s smallest businesses, who are the chief industry innovators and job creators in our nation.”

The NASE’s Top Small Business Tax Tips

NASE — Wednesday, 28 January, 2009 11:31:00 EST

For Immediate Release:

Contact:

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

NASE’s National Tax Advisor Breaks It Down For Micro-Business

Washington, D.C., January 28, 2009 – Whether gathering documents and forms, studying receipts or working through math calculations, entrepreneurs are getting ready for April 15th one step at a time. It’s a good idea, says the National Association for the Self-Employed (NASE), because getting a jump on the filing season leaves more time to double-check forms and calculations and ensure all eligible credits and deductions have been taken.

Here are the NASE’s top business tax tips for the 2008 filing season, according to Keith Hall, National Tax Advisor and Certified Public Accountant:

Gather Information for Your Tax “Arsenal.” In addition to the paperwork, make sure to find reliable materials to help with the completion and filing of the return. Sole proprietors can visit NASE.org to request a free line-by-line guide to the Schedule C form, including information on the home office deduction. Visit IRS.gov for detailed eligibility requirements for all credits and deductions. Now is also the time to decide if you will prepare your return or enlist the help of a professional.
Cash or Accrual Accounting. While most small business owners and sole proprietors prefer cash accounting, some benefit from the accrual method, where one records a fee as income when a job is done, but before the payment is received. Before changing an accounting method, however, a business owner must receive IRS approval.
Learn to Share and ALWAYS Report All Types of Income. Do not forget other sources of income, such as bank interest; business investment account interest and bad debt recoveries (from debts previously written off).
Statutory Employees May Need Two Schedule Cs. A statutory employee is a person who receives a W-2 form with box 13, "Statutory employee," checked off. This includes most full-time life insurance agents, commission drivers, traveling salespersons and certain home workers. However, a statutory employee who receives trade or business income separate from the W-2 must file two Schedule Cs.
Signs of the Times. When is a sign depreciable, and when is it a deductible capital expense? Permanent signs that are built to last more than a year must be depreciated. On the other hand, a tabletop tent card for advertising the daily dinner special at a restaurant is a fully deductible advertising expense.
It's My Party, but I Can't Deduct It. Or can you? A grand opening gala to introduce prospective customers to a new enterprise is deductible--including the band, signs, decorations, etc. However, the company’s big holiday bash isn't deductible as an entertainment expense, unless the attendees comprise existing and prospective customers, you discuss business at the party, and you have a reasonable expectation of generating business from the event. It would then qualify for a 50% deductible "entertainment" expense.
Do You E-File? Business owners who file electronically receive their refund much sooner than those who file a paper return. Plus, the computer will handle the math calculations for you.
You Are Not Alone. There are many tax resources out there to help during filing season, including www.NASE.org and www.IRS.gov. Visit these sites often for the latest tips, tools and assistance.

Entrepreneurs preparing to meet the filing deadline can turn to qualified CPAs for help through the NASE’s TaxTalk program. Visit the site to ask a tax question, watch or download tax advice and browse the TaxTalk resource library. You can also follow Keith Hall on Twitter.

Find out more information about tax law changes for the 2008 tax season check the instructions on the 1040 form or www.IRS.gov.

Micro-Grant Program Awards Over $85,000 to NASE Members In 2008

NASE — Thursday, 22 January, 2009 15:41:00 EST

For Immediate Release:

Contact:

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

17 Micro-Business Owners Receive Grants

Washington, D.C., January 22, 2009 – The National Association for the Self-Employed (NASE) awarded $85,772 in business grants to its members in 2008, bringing the program total to over $350,000 in awards since 2006. Seventeen NASE Members, ranging from a property preservation company to a creative bureau, received a grant from the association this year.

Premier-level 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. The awards are part of the NASE Business Development Grant Program, which started in 2006.

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 minor changes to the way a business operates can generate huge profits.”

The following NASE Members received grants in 2008:

Joseph Carr of Carr Development Group, Inc. in Oklahoma City, Okla.
Gina Covello of Habla Language Services in San Jose, Calif.
Robert Crosser of Southwest Hauling, LLC in Eloy, Ariz.
Cheryl Cruson of Oregon Trail Hobbies & Gifts in Ontario, Ore.
Jill Dittrich of Thresholds of Madison, LLC in Madison, Wis.
Scott Dullock of The House Doctors in Jackson, Mich.
Lora Edelman of Curves of Walla Walla in Walla Walla, Wash.
Melodie Ellis of Melodie’s Music & Dance in Trophy Club, Texas
Kathy Hester of Kathy Hester’s On Target Golf Schools in Vicksburg, Miss.
Christopher Hutcheson of Peachtree Restoration LLC in Manchester, N.H.
Richard Hylan of Hylan Plumbing Co. in Rocky Mount, N.C.
Regina Milan of Ideation Ink, LLC in Santaquin, Utah
Dawn O’Neil of Dawn O’Neil’s Family Child Care in Ashley Falls, Mass.
Jennifer Peace of Peaceful Images Styling Salon in Great Falls, Mont.
Gregory Steeg of Steeg’s Haul-Away Service, Inc. in Rock Falls, Ill.
Carlene Thompson of D & C Entertainment LLC in Delafield, Wis.
Tiffany Washington of Washington Accounting Services in Waldorf, Md.

Learn more about grant recipients from 2006 and 2007.

2008 Tax Changes Include Self-Employment Tax Modification

NASE — Monday, 12 January, 2009 11:31:00 EST

For Immediate Release:

Contact:

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

NASE’s TaxTalk Program Offers Free Filing Advice For Micro-Business

Washington, D.C., January 12, 2009 – Prior to preparation of the 2008 tax forms, micro-business and the self-employed should be aware of a few tax law changes, including an increase in retirement savings opportunities and self-employment tax modifications.

“Don’t let the 2008 filing season sneak up on you,” said Keith Hall, national tax advisor for the National Association for the Self-Employed (NASE). “There are many online resources available to micro-businesses to help them get prepared, including the NASE and the Internal Revenue Service.”

The following tax law changes relate to 2008 returns:

First-Time Homebuyer Credit – Offices located inside a first-time home purchase may qualify for additional tax incentives if the purchase was made from April 9, 2008, to June 30, 2009. The $7,500 credit is very similar to a 15-year interest-free loan.
Standard Mileage Rates Adjusted for 2008 - The standard mileage rate for business use of a car, van, pick-up or panel truck is 50.5 cents per mile from Jan. 1, 2008, to June 30, 2008. The rate is 58.5 cents for each mile driven during the remainder of the year.
Talk to the IRS - The IRS is reaching out to taxpayers who are unable to meet their obligations during this economic slump with tax credits, deductions and additional outreach. Please visit www.IRS.gov for more information on how the agency is working to help financially distressed business owners.
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 $159,000 and $169,000.
Self-Employment Tax Changes - For those who receive Social Security Retirement or disability benefits, Conservation Reserve Program (CRP) payments are now exempt from the 15.3-percent social security self-employment tax. The income thresholds increase for the 2008 filing season and are indexed for inflation.
AMT Exemption Increased for 2008 - For tax-year 2008 only, the exemption for a married couple filing a joint return is $69,950, up from $66,250 in 2007; $34,975 for a married person filing separately, up from $33,125 and $46,200 for singles and heads of household, up from $44,350.

Entrepreneurs preparing to meet the filing deadline can turn to Hall and other qualified CPAs for help through NASE’s TaxTalk program here. While there, they can submit a tax question, watch or download tax advice from Keith Hall and browse the TaxTalk resource library.

Find out more information about these and other tax law changes for the 2008 tax season check the instructions on the 1040 form or www.IRS.gov.

Micro-Businesses Pessimistic About 2009 Economic Outlook

NASE — Thursday, 8 January, 2009 11:31:00 EST

For Immediate Release:

Contact:

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

One-Quarter Of Businesses Weathering Downturn For The First Time

Washington, D.C., January 8, 2009 – The slowing economy has hit small businesses hard over the last few months, and many entrepreneurs are only expecting things to get worse in 2009. Forty-three percent of the self-employed and micro-business owners say that this is the worst economic downturn that they have experienced, and one-quarter say it is the first slump they have experienced with their current business, according to a study undertaken by the National Association for the Self-Employed (NASE).

More than half of the micro-business owners surveyed (51%) expected their 2008 year-end gross revenue to be lower than their gross revenue from 2007. Some small business owners seem more optimistic, with twenty-four percent expecting 2008 year end gross revenues higher than 2007, and eighteen percent expecting no change in gross revenue from 2007 to 2008.

“The current economic slowdown is causing many challenges for micro-businesses,” commented NASE’s Executive Director, Kristie Darien. “More small business owners are being faced with difficult choices such as cutting benefits and compensation for themselves or their employees. Others have resorted to putting personal savings into their business to survive in the current economic climate, since they are unable to obtain business loans or credit.”

Micro-business owners are considering various actions to address the economic impact on their business:

17% may scale back the purchase of inventory or equipment
14% may use personal savings to shore up their business
11% may downsize staff or refrain from hiring new staff
10% may lower prices of products and/or services

Methodology:
Posted in the members-only portal on the NASE Web site and advertised in the NASE’s eNewsletter, the survey was available for members to take in November and December. Over 500 NASE Members opted-in to the non-scientific survey and members were prohibited from taking it more than once.

Kristie Darien 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.

Obama Names Top Small Business Administration Official

NASE — Friday, 2 January, 2009 11:31:00 EST

For Immediate Release:

Contact:

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

Main Street Seen By President-Elect As Crucial To Economic Recovery

Washington, D.C., January 2, 2009 – The Small Business Administration (SBA) will have a new leader under President-elect Barack Obama. He has tapped Karen Gordon Mills to take over duties at the SBA in January. She currently works as a Maine-based private equity investment advisor and chairs the Maine Governor’s Council on Competitiveness and the Economy.

“With Karen Mills at the helm, America's small businesses will have a partner in Washington to create jobs and spur growth,” Obama said. “As a venture capitalist who invests in small businesses, Karen understands the challenges faced by both small business owners and the workers they employ.”

Mills co-founded Solera Capital, a New York-based venture capital firm. She has said that support for micro-businesses, particularly technology startups specializing in energy efficiency, will be critical to the nation’s economic growth and renewal. The appointment of Mills must be confirmed by the Senate before she can officially take office.

“Federally supported outreach to the country’s smallest businesses is essential to their growth,” said Kristie Darien, executive director of the NASE legislative office. “As always, the NASE looks forward to working with the SBA on efforts to increase access to capital, increase funding for critically important training programs, reduce burdensome and confusing regulations, simplify tax code and address other small business needs.”

Local Entrepreneur Receives Grant To Grow Their Small Business

NASE — Monday, 17 November, 2008 12:30:00 EST

For Immediate Release:

Contact:

Contact: Maureen Petron
(202) 466-2100
mpetron@NASEadmin.org

Local Entrepreneur Receives Grant To Grow Their Small Business

Tiffany Washington of Waldorf Will Use Grant For New Software and Equipment

Washington, D.C., November 17, 2008 – The National Association for the Self-Employed (NASE) is proud to announce that Tiffany Washington of Waldorf, Maryland, has been awarded a $3,000 grant through the NASE’s Business Development Grant Program. Washington, owner of Washington Accounting Services, a full-service financial services firm, will use the grant for new software and office equipment to prepare for the upcoming tax season.

Founded in 2007, Washington Accounting Services aims to provide proficient and reliable accounting, tax preparation, payroll services, new business entity set-up, and notary services for businesses and individuals nationwide.

With the Business Development Grant program, premier-level 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 $300,000 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.”

To learn about all the NASE Business Development Grant recipients, visit www.NASE.org/grants.

Grant Program Rounds Out Awards Worth $113,000 To NASE Members

NASE — Wednesday, 23 January, 2008 15:41:00 EST

For Immediate Release:

Contact:

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

23 Micro-Business Owners Receive Grants In 2007

Washington, D.C., January 23, 2008 – The National Association for the Self-Employed awarded $113,544 in business grants to its members in 2007, bringing the program total to over $250,000 in awards since 2006.

Twenty-three NASE Members received a grant from the association this year. 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. The awards are part of the NASE Business Development Grant Program, which started in 2006.

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.

“Finding the funding to grow a micro-business is a constant challenge to our members,” said Robert Hughes, president of the NASE. “The NASE continues to advocate in Washington, D.C., for greater access to capital for the self-employed. But in the meantime, we wanted to provide an immediate solution for our members.”

The following NASE Members received grants in 2007:

Missy Axton-Wryn of Nature's Balance Care in Estacada, Ore.
Julie and Dan Braeckman of Daunting Task Studios in Bordentown, N.J.
John Bragg of Larry’s Locksmith in Shelbyville, Ill.
Brian Brophy of New Creation Construction in Lockeford, Calif.
Brent Dorsey of The Paint Gallery in Moorefield, W.Va.
Rolita Edwards of Lita’s Pooch Hut in Bedford Heights, Ohio
Brent Eriksen of Atlanta Handyman and Remodeling in Smyrna, Ga.
Robert Frye of Frye Bros. Plumbing in Ramage, Pa.
Jacquelyn Gadsden of There’s Room, Inc. in Columbia, S.C.
Robert Grimes of Ace High Ballooning in Lewisburg, Tenn.
Jeffrey Harrelson of Apex Training and Development in Dubuque, Iowa
Elizabeth Hawkins of Lizzie B Cre8ive in Tucson, Ariz.
Iris Hood of Hood Company in Pearl, Miss.
Renee Horner of Three E Graphic Design in Pittsburgh, Pa.
Steve Laughlin of Skidsteer Plus Landclearing in Highlandville, Mo.
Robert McConville of McConville Cattle in Indianola, Neb.
Edwin Newsome of Become One LLC in Elkhart, Ind.
Mutondo Ngaway of Mamu Cleaning Services in Columbia, Md.
Sheri Novak of Hazelnut Kids LLC in Traverse City, Mich.
Tracie Smith of Tracie’s Community Farm in Sullivan, N.H.
Kira Villarreal of Happily Ever After Designs in San Antonio, Texas
Karen Wharton of Wharton Carpet Services in Jamul, Calif.
Stephanie Yotz of Mountain View Pediatric Speech & Language, Inc. in North Bend, Wash.

Learn about grant recipients from 2006.

Grant Program Awards Over $150,000 To Members In Inaugural Year

NASE — Friday, 12 January, 2007 15:41:00 EST

For Immediate Release:

Contact:

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

34 Micro-Business Owners Receive Grants In 2006

Washington, D.C., January 12, 2007 – Finding access to capital is without a doubt one of the biggest hurdles facing small businesses today, but for thirty-four micro-business owners, that hurdle is a little lower thanks to the National Association for the Self-Employed (NASE). The NASE awarded $152,204 in business grants to its members in 2006, the first year of the NASE’s Business Development Grant program.

Launched in May, 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.

With the NASE Business Development Grant Program, NASE Members 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.

“Finding access to capital is one of the biggest hurdles facing small businesses today,” said Robert Hughes, president of the NASE. “Often, a small amount can make a huge difference to a micro-business. That’s what this program is about – providing enough of a boost to the business cash flow to take that next step in growing the business.”

The following NASE Members received grants in 2006:

Raymond Badders of Shirtznmore, Inc. in Manchester, Md.
Steve Baier of Red Rune Airbrush in Norwalk, Iowa

Toy Bairamis of Kosta’s Taxi Service in Homer, Alaska
Holly Birch of Holly Birch Photography in Champaign, Ill.
William Blazek of Blaz’N Diagnostics, LLC in Boise, Idaho
Carl Booker of Avista Products in San Antonio, Texas
Timmy Butler of Butler & Son Funeral Home in Roseboro, N.C.
Barbara Cady of Whodonnit Mystery Games in Walla Walla, Wash.
Martha Cordova of Chosen Healthcare in Wetumka, Okla.
Stephen Desmond of Perfect Impression Gifts in Orrington, Maine
Roger Dyar of Roger D. Dyar, P.E., P.A. in Greenville, S.C.
Thelma Epping of Young at Heart Adult Foster Home in Bend, Ore.
Charles Freeland of Freeland Custom Woodworking in Indianapolis, Ind.
Mary Elizabeth Harvey of Kid’s Shop and Mom’s Too in Dothan, Ala.
Leo Huppert of Huppert Pediatric Therapy in Gilbert, Ariz.
Jennifer Labs of Paradigm Shift Solutions, LLC in Lakewood, Colo.
Carey Marden of Zucchini Fish in Providence, R.I.
Marsha McCleod of ABC 123 Teach in St. Louis, Mo.
Bonnie Medina-Jawad of BJ’s Groom & Zoom in Las Vegas, Nev.
Ross Merenda of Optima Trade & Investments, LLC in Follansbee, W.Va.
Julia Meskill of Camera Girl Media, LLC in Atlanta, Ga.
Susan Newman of Dragonfly Books in West Springfield, Mass.
Kim Peavy of Hillside Springs Farm and CSA in Westmoreland, N.H.
Haskell Potter of Southeast Plumbing & Backhoe in Choctaw, Okla.
Deborah Reddmann of Fancy Plants Landscaping and Lawn Care in Harrisburg, Ark.
Teresa Rowell of Post Office Pizza in Albany, La.
Thomas Santoro of Law Office of Thomas Santoro in Barkhamsted, Conn.
Jeanne Schaffer of Building Blocks for Learning in Janesville, Wis.
John Schleicher of The Cleaning Authority in Albuquerque, N.M.
Link Smith of L. Smith Pallets in Cedar Bluff, Va.
Craig Sowby of Corner House Studio in Pleasant Grove, Utah
Rebekah Stamp of Catalyst Physical Therapy, PC in Hamilton, Mont.
Michael Stivala of Intwenty.com, Inc. in Stroudsburg, Pa.
Donnamarie Worsley of Computerized Billing Service in Milford, Del.

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