Is Your Employee Really An Employee?

Is That a Real Employee or a Common-Law Employee?

The IRS and the Department of Labor are cracking down on businesses that use contractors but treat them like real employees – or, as the IRS calls them, “common-law employees.”  Before you misclassify that contractor, ask yourself these 5 questions:

1.  Do you control the work?  If you direct how and where and at what time someone works for you, then the government says you have an employee, not a contractor.

2.  Do you furnish the equipment?  If you have given someone a computer or other equipment on which they will perform work for you, they are likely to be classified as your employee.

3.  Are you in one of these industries?  Some industries are audited at a higher rate than others when it comes to employee misclassification, including nail salons, restaurants, cleaning services, security guards, landscaping companies, property management and drywall.  If you are in one of these businesses, you need to educate yourself on employment law with the help of a Creative Business Lawyer™.

4.  Is there anything in writing?   Most contractors operate with a contract that spells out the work they will provide and the compensation they will get for it.  We can help you prepare a contract to ensure your contractors are not deemed common law employees.

5.  Do they just work for you?  Most contractors are free to work for other people, not just you.  Even if they don’t actually have other clients, it should be clear that they are free to pursue other work without your permission.

If you’re a small or mid-size business owner, call us today to schedule your comprehensive Small Business Audit Session.  Normally, this session is $1,500, but if you mention this article and we still have room on our calendar this month, we will waive that fee.  

Do you need help determining what your team members should be classified as?  If you’re a small or mid-size business owner, call us today to schedule your comprehensive Business Planning Starter Session if you are just starting out or a Business Planning Audit Session if you are up and running.  Normally, this session is $1,500, but if you mention this article and we still have room on our calendar this month, we will waive that fee.

Wilson, lf is a family-focused boutique law firm specializing in small business planning located in Andover, MA and Washington, DC helping small business owners organize their business affairs, in style, to protect their investments and provide for their loved ones.  Call (978) 296-4140, email info@wilsonlf.com, or visit our website at www.wilsonlf.com, for more information.

The Talk You Need To Have With Your Parents: It is Not The Birds & The Bees, But Maybe Just As Uncomfortable

When you were a kid, your parents dreaded the talk they had to have with you.  You know the one.  Well, now that you are an adult, there’s a talk you need to have with your parents that is likely to be just as squirm-worthy – which is why so many of us put it off.  

It’s about money.  Specifically, your parent’s money.  The money that may become yours one day. Or may not. 

Whether you or your parents think it’s none of your business, it is.  You are most likely the one(s) who will need to deal with all the financial issues your parents leave behind when they become incapacitated or after they die. 

Not knowing anything about their finances will place you at an immediate disadvantage, making what will be a hard job almost impossible.  

So how do you get the conversation started?  Here are some tips from a recent New York Times column on the subject:

Think about what you need to know.  You need to know more than where to find the will, you need to know if parents have executed powers of attorney, advance health care directives or a trust as well.  You need to know if they have life insurance or other assets and, if so, where the policy is located.  You need to know if they keep a list of all their debts and, if they bank and pay bills online, you need their log-in information for each account.  

Bring in a support team.  Your parents may feel more comfortable discussing financial issues with their attorney or financial planner present to facilitate the conversation. They may also feel more comfortable talking with all their children at once, or to only one – take family dynamics into consideration.  And call us in at the beginning of the process.  We can help ease the way tremendously.

Make a plan.  Chances are you will need immediate access to cash in order to pay expenses related to a parent’s passing.  Since probate can be a lengthy process, you may want to plan for this eventuality by having parents establish a revocable living trust, which allows assets to pass outside probate.  

Document storage.  Be sure your parents do NOT store their important documents in a bank safe deposit box  without taking precautions because getting at them could require you to obtain a court order.  First, make sure they have instructions on where the box is and who has permission to open it if anything happens to them.  Maybe even make sure you are a signer (and there are back-ups besides you) on the safe deposit box.  Or just use a strongbox or safe that is kept in the home instead. 

If you would like to have a talk about estate planning for your family, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Plan Session, but because this planning is so important, we’ve made space for the next two people who mention this article to have a complete planning session with your parents at no charge. Please call, (978) 296-4140, email info@wilsonlf.com, or visit our website www.wilsonlf.com to learn more about how we can help you give yourself and your parents peace of mind.

Wilson, lf is a family-focused boutique law firm specializing in estate planning located in Andover, Massachusetts and Washington, DC.  We help parents like you organize your affairs, in style, to protect your investments and provide for your loved ones.  We are so passionate about providing "a plan for every family" that we meet families throughout Massachusetts and DC in their homes or offices and have some evening and weekend appointments available every month for utmost convenience. 

Happy Father's Day! Want to Know The Gift He Will Cherish Forever?

One of the best ways for you to show your husband you love him and your family is to help put all of your family's financial ducks in a row and make sure your kids are taken care of by the people you love...no matter what!

If you own a home and have minor children, a Family Plan Session, valued at over $750, is essential to your family.  And while most men are resistant to coming to this planning session, they absolutely love it after they've gone through it.

During the Family Plan Session you and your husband will:

1. Choose the right guardians for your kids and avoid making any of the "6 Common Mistakes" most parents make.
2. Get your financial house in order and keep it that way!  Believe it or not, the second part is what most parents fail to do since once they go over their finances with a financial advisor, check it off their list and fail to maintain the plan.
3. Learn how to prepare your kids for life without you!  You are always teaching your children how to do things for themselves and be independent, but how much have you really prepared them to do so if they could no longer depend on you or your husband?
4. Learn how to legally avoid all estate taxes!  If you had the choice to give money to your kids or give it to Uncle Sam, who would you choose?  Exactly!
5. Learn the secret to protecting your kid's inheritance from lawsuits and divorce!  Giving money outright to your kids is not the most responsible choice.  Why not protect their money from themselves and those who would go after their money?
6. Discover how to leave your loved ones a far greater gift than all the money in the world!  Do you know the #1 gift people ask for when they lose a loved one?  Well, we can help you give that gift to each other and your kids!

The Family Plan Session is absolutely free for Father's Day and there is no obligation and no pressure; think of it as the parenting session you didn't get at the hospital.  Please call, (978) 296-4140, email info@wilsonlf.com, or visit our website www.wilsonlf.com to learn more about how we can help you give your husband the gift of a lifetime.

Wilson, lf is a family-focused boutique law firm specializing in estate planning located in Andover, Massachusetts and Washington, DC.  We help parents like you organize your affairs, in style, to protect your investments and provide for your loved ones.  We are so passionate about providing "a plan for every family" that we meet families throughout Massachusetts and DC in their homes or offices and have some evening and weekend appointments available every month for utmost convenience. 

Scammers, Hackers, & Your Business: Protecting Your Small Business from Cybercrime

The Association of Certified Fraud Examiners has reported that companies with fewer than 100 employees lost an average of $155,000 annually as a result of fraud, identity theft and cybercrime.  Here are some tips for protecting your small business from becoming a victim:

Protect bank accounts and credit cards.  First, be sure that your personal banking and credit accounts are kept separate from business accounts.  Be stingy with issuing company credit cards and pay bills online.  Use a secure mailbox for sending and receiving mail.  Check your bank accounts daily online for any suspicious activity.

Firewall protection.  Be sure your business computers are fully protected with a firewall and have anti-virus, malware and spyware detection software installed on every computer.  Have a robust back-up system for all your business data.

Dedicated banking computer.  Use a dedicated computer for all online banking activities and make sure it is never used for web surfing or other online activities that could make it more vulnerable to a cyber attack.  

Password policy.  Invoke a password policy company-wide that is changed every 30-60 days.

Educate employees.  Educating employees on threats and prevention methods is your best defense.  Hold regular training sessions and be sure to educate new hires.  Before hiring anyone, conduct a background check to ensure you are hiring the right people – but check with a Creative Business Lawyer™ to be sure your checks are in compliance with local laws.

Insurance.  Get an insurance policy that protects you against any loss or liability suit that could arise from cybercrime.  

A comprehensive asset protection plan for both your business and personal assets is a must for any business owner.  If you’re a small or mid-size business owner, call us today to schedule your comprehensive Business Planning Starter Session if you are just starting out or a Business Planning Audit Session if you are up and running.  Normally, this session is $1,550, but if you mention this article and we still have room on our calendar this month, we will waive that fee.

Wilson, lf is a family-focused boutique law firm specializing in small business planning located in Andover, MA and Washington, DC helping small business owners organize their business affairs, in style, to protect their investments and provide for their loved ones.  Call (978) 296-4140, email info@wilsonlf.com, or visit our website at www.wilsonlf.com, for more information.

Is Your Retirement Plan in Good Shape? Here are 5 Easy Fixes...

It’s no secret that a majority of Americans are ill-prepared for retirement.  A recent Forbes.com post detailed the 5 steps you can take now to being repairing the hole in your retirement plan:

1.  Pay yourself first.  Set up an account that is not easy for you to access and start filling it with a significant percentage of your pay (10% or above).  You can accomplish this by participating in your company’s 401(k) plan and making sure you contribute at least the minimum amount to get the employer match (free money!).

2.  Load up on tax breaks.  Another benefit of participating in a 401(k) is that it lowers your taxes without you having to do all the paperwork.  A 401(k) is also portable if you change jobs.

3.  Estimate your retirement needs.  Don’t believe that you will be able to sustain your current lifestyle on Social Security alone; it won’t happen.   Experts say you need to have enough saved to match at least 70% of your pre-retirement income.  Not sure how you will get there?  A Personal Family Lawyer can help advise you on strategies, depending on your current age, income and estimated retirement age.

4.  Plan conservatively.  Don’t think you can count on a bull market to fund your retirement.  Estimate a reasonable return on your investments when planning your retirement, and balance risk and reward as you near your retirement date.

5.  Take charge.  You need to take charge of your retirement plan by checking regularly to see if you’re on track to retire with the amount of income you need to support the lifestyle you want.  Know exactly how your plan is – or is not—working and adjust accordingly by considering how you can create an income stream for yourself that you can count on throughout the rest of your life, instead of relying on savings or your retirement account at all.

If you would like to learn more about retirement planning, call or email Wilson, lf today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Plan Session, but because this planning is so important, we’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.

Wilson, lf is a family-focused boutique law firm specializing in estate and small business planning helping parents organize their affairs, in style, to protect their investments and provide for their loved ones.  We are located in Andover, Massachusetts and Washington, DC.  Call (978) 296-4140, email info@wilsonlf.com, or visit our website, www.wilsonlf.com, for more information.

Past Due? How to Make Sure Your Business Gets Paid and Doesn't Get Stiffed By Customers

Sooner or later, you are going to have a client who doesn’t pay you for services or products provided.  Customers who do not pay are a fact of life for every business, so what are your alternatives?  Here are some options:

In-house collections – Designate someone in your firm to contact the buyer personally to see if the invoice was lost or if there were other reasons for nonpayment that you can work out.

Attorney – An In-House Business Counsel can help you collect if your own efforts have failed.  Sometimes all it takes is a stern letter on attorney letterhead to get action.

Collection agency – You won’t get the full amount – a collection agency generally takes 25-40% of a collection – but sometimes something is better than nothing.

Small claims court – You can file a claim in small claims court if the amount due is within the limits for courts in your area.  This will take more of your time than money, but could pay off.

Tax write-off – You may be able to take a bad business debt deduction if all your collection efforts have failed.

If you find yourself getting stuck with accounts receivable on a regular basis, you very likely need to review your invoicing practices.  We can help you with that.

There are also new technologies that allow you to get paid on the spot, on your smart phone or tablet device.  

If you are still sending out paper invoices, consider changing to electronic invoicing and be proactive about following up once a payment is even one day late.

We proactively monitor and review these kinds of matters for our clients.  Let us know if we can do so for you.

A comprehensive asset protection plan for both your business and personal assets is a must for any business owner.  If you’re a Massachusetts or District of Columbia small or mid-size business owner, call us today at 978-296-4140 to schedule your comprehensive Small Business Structure Audit.  Normally, this session is $1,500, but if you mention this article and we still have room on our calendar this month, we will waive that fee.

Wilson, lf is a family-focused boutique law firm specializing in small business planning; helping small business owners organize their affairs, in style, to protect their investments and provide for their loved ones.  We are located in Andover, Massachusetts and Washington, DC and we frequently meet at our clients' businesses for true "In-House" Business Counsel service.