What Is an Accrued Expense – Accounting?

Have you ever been baffled by accounting types telling you that a certain expense has been accrued? Some time ago I told someone about accrual of her expenses, and she was offended. I had to tell l her that to accrue something was not a horrible thing… Basically, to accrue an expense is to recognize a transaction before it has been paid or entered in the accounts payable system. In order to be accrued, an expense must have occurred during this period. If you used a service or purchased goods to be used now, then you recognize that expense now.

Accruals are usually made when books at closed, sometimes every month and for sure at year-end. Examples of accrued expenses could be:

* Payroll for work performed this period, but paid in the future — VERY COMMON

* Commission for sales that happened now, but will be paid in the future

* Utilities used this period, but paid in a following period

* Purchases for paper to be used this period, but paid in the future

* Expenses for an event that happened this period, but paid in the future

The point is to recognize the expense in the income statement, matching it with revenue for the same time period.

Oftentimes accountants estimate accrued expenses. This may happen when they don’t know how much these expenses will cost. Accountants usually look at accrued expenses of a prior period to make sure they don’t forget any transactions. If they notice expense accruals for insurance, for instance, then they know that they may have insurance expenses out there to be accrued.

Sometimes business people get confused between budget numbers and accruals. You do NOT accrue an expense just because you budgeted for it. You accrue an expense because the transaction actually happened during the period. This means that budget versus actual expenses variances may be explained by accrued expenses.

Technical Details

For the technically minded, below is the journal entry to book an accrued expense:

Debit — Different types of expenses reporting in the income statement

Credit — Liability accrued expense account, reporting in the balance sheet

When the accrued expense is paid, the journal entry is:

Debit — Liability account

Credit — Cash

A common problem is to book the expense in the accrual and again when the bill is entered in the accounts payable system. To avoid this double-booking, the original accrual entry is reversed as the bills are paid. This can be time-consuming and error-prone, but it is the traditional way to avoid recognizing the same expense twice.

Source by Sheila Shanker

How Long Does a Lawsuit Take?

If you have a lawsuit you are probably wondering how long the lawsuit will take. A lot can be riding on your lawsuit. For example you may:

  1. Have attorneys expenses that build up until the lawsuit is settled.
  2. Be waiting until the settlement arrives.
  3. Be not making money until the case ends (due to a cease and desist or personal injury).

Because a lot can be at stake, you will want to get the most reasonable estimate for how long your lawsuit will take as possible. Unfortunately, it would be impossible to give you a short answer as to how long your lawsuit will take. There is just so much that it depends on.

One personal injury lawsuit may take six months and another that looks no different may take three years. It’s very unpredictable and it’s impossible to say how long your case will take.

All that being said, there are some industry averages:

Average Case, 2-5 years

Personal Injury, 2-3 years

Medical Malpractice, 2-3 years

Patent Issues, 1-5 years

The above times are simply industry averages that I’ve heard of. They are not legal advice. I’m not an attorney and you should consult your attorney as to how long he thinks your lawsuit will take.

The point of all this, however, is that unless you reach a settlement out of court (which could mean a much smaller settlement), it is likely to take a few years for your case to go through. It’s impossible to give an estimate of how long your lawsuit will take without all the data.

If your settlement is worth fighting for then a lawsuit loan may be what you need to survive until the settlement comes in. The interest for these loans can be as low as 2.99% and the best part is that if you lose your case you will not owe anything.

Source by Jason Argall

Wide Area Network (WAN)

Types and Characteristics of WANs

What is a WAN?

There are two prevailing definitions of a Wide Area Network (WAN). The book definition of a WAN is a network that spans large geographical locations, usually to interconnect multiple Local Area Networks (LANs). The practical definition of a WAN is a network that traverses a public network or commercial carrier, using one of several WAN technologies

What are its Main Components?

The main components for a WAN are routers, switches and modems. These components are described below in the hardware section.

CPE – Devices on the subscriber premises are called customer premises equipment (CPE).

The subscriber owns the CPE or leases the CPE from the service provider. A copper or fiber cable connects the CPE to the service provider’s nearest exchange or central office. This cabling is often called the local loop, or “last-mile”.

DTE/DCE – Devices that put data on the local loop are called data circuit-terminating equipment, or data communications equipment (DCE). The customer devices that pass the data to the DCE are called data terminal equipment (DTE). The DCE primarily provides an interface for the DTE into the communication link on the WAN cloud.

Hardware

In a WAN you will need various types of hardware components for it to function. The typical items of hardware that you will need in a WAN are:

Router – An electronic device that connects a local area network (LAN) to a wide area network (WAN) and handles the task of routing messages between the two networks. Operates at layer 3, and makes decisions using IP addresses.

Switch – A switch is a network device that selects a path or circuit for sending a unit of data to its next destination. Operates at layer 2, and uses MAC addresses to send data to correct destination.

Modem – Short for modulator/demodulator, a modem enables a computer to communicate with other computers over telephone lines. Operates at layer 1, where signals are converted from digital to analogue and vice versa for transmission and receiving.

Wan Standards

WANs operate within the OSI model using layer 1 and layer 2 levels. The data link layer and the physical layer. The physical layer protocols describe how to provide electrical, mechanical and functional connections to the services provided by the ISP. The data link layer defines how data is encapsulated for transmission to remote sites.

Encapsulation

Encapsulation is the wrapping of data in a particular protocol header. Remember that WANs operate at the physical layer and the data link layer of the osi model and that higher layer protocols such as IP are encapsulated when sent across the WAN link. Serial interfaces support a wide range of WAN encapsulation types, which must be manually specified. These types include SDLC, PPP, Frame delay etc. Regardless of WAN encapsulation used it must be identical on both sides of the point to point link.

Packet and Circuit Switching

Circuit switching and packet switching are both used in high-capacity networks.

The majority of switched networks today get data across the network

through packet switching.

Circuit-switching is more reliable than packet-switching. Circuit switching is old and expensive, packet switching is more modern.

General Routing Issues

What is a Routing Protocol?

A routing protocol is a protocol that specifies how routers communicate and exchange information on a network. Each router has prior knowledge of its immediate neighbours and knows the structure of the network topology. The routers know this because the routing protocol shares this information.

Protocol

RIP (Routing Information Protocol) was one of the most commonly uses protocols on internal networks. Routers use RIP to dynamically adapt changes to the network connections and communicate information about which networks routers can reach and the distance between them. RIP is sometimes said to stand for Rest in Pieces in reference to the reputation that RIP has for breaking unexpectedly and rendering a network unable to function.

Routing Algorithms

Distance Vector

This type of routing protocol requires that each router simply inform its neighbours of its routing table. The distance vector protocol is also known as the bellman-ford algorithm.

Link State

This type of routing protocol requires that each router maintain a partial map of the network. The link state algorithm is also know as Dijkstra’s algorithm.

IGRP

IGRP is a type of distance vector routing protocol invented by cisco used to exchange routing data in a autonomous system. Distance vector protocols measure distances and compare routes. Routers that use distance vector must send all or a portion of their routing table in a routing update message at regular intervals to each neighbour router.

Addressing and Routing

What does routing mean?

Routing is the process of deciding how to move packets from one network to another.

The directions also known as routes can be learned by a router using a routing protocol then the information is passed from router to router along the route of the destination.

IP Address’s

Every machine connected to the internet is assigned an IP address. An example of an IP address would be 192.168.0.1. IP addresses are displayed in decimal format to make it easier for humans to understand but computers communicate in binary form. The four numbers that separate an IP address are called Octets. Each position consists of eight bits. When added to together you get 32 bit address. The purpose of each octet in an IP address is to create classes of IP addresses that can be assigned within a network. There are three main classes that we deal with Class A, B and C. The octets of an IP address are split into two parts Network and Host. In a class A address the first octet is the network portion, this determines which network the computer belongs to, the last octets of the address are the hosts that belong to the network.

Sub netting

Sub netting allows you to create multiple networks within a class A, B or C address. The subnet address is the address used by your LAN. In a Class C network address you would have a subnet mask of 255.255.255.0. A subnet mask identifies which portion is network and which is host. For example 192.168.6.15 the first octet three octets are the Network address and the last octet being the host(Workstation). It is important to subnet a network because gateways need to forward packets to other LANS. By giving each NIC on the gateway an IP address and a Subnet mask it allows the gateways to route packets from LAN to LAN. Once the packet arrives at its destination, the gateway then uses the bits of the subnet portion of the IP address to decide which LAN to send the packets.

Circuit Switched Leased Lines

A circuit switched network is one that establishes a dedicated circuit (or channel) between nodes and terminals before the users may communicate. Here are some terminologies associated with a Circuit switched network.

Frame relay is a telecommunication service designed for cost-efficient data transmission between local area networks (LANs)

Basic rate interference is a service used by small business for internet connectivity. An ISDN BRI provides two 64 Kbps digital channels to the user.

Primary rate interface (PRI) is a telecommunications standard for carrying voice and data transmissions between two locations

All data and voice channels are ISDN and operate at 64kbit/s

Packet Switching

http://www.raduniversity.com/networks/2004/PacketSwitching/main.htm – _Toc80455261

Packet switching refers to protocols in which messages are broken up into small packets before they are sent. Each packet is then transmitted over the Internet. At the destination the packets are reassembled into the original message. Packet switching main difference from Circuit Switching is that that the communication lines are not dedicated to passing messages from the source to the destination. In Packet Switching, different messages can use the same network resources within the same time period.

http://en.wikipedia.org/wiki/Asynchronous_Transfer_Mode

Asynchronous Transfer Mode (ATM) is a cell relay, packet switching network and protocolwhich encodes data into small fixed-sized cells.

ISDN is used to carry voice, data, video and images across a telephone network. ISDN stands for integrated services Digital Network. Isdn also provides users with a 128kbps bandwidth. This is done through frame relay. Frame relay complements and provides a service between ISDN, which offers bandwidth at 128 Kbps and Asynchronous Transfer Mode which operates in somewhat similar fashion to frame relay but at speeds from 155.520 Mbps or 622.080 Mbps. Frame relay is based on the older X.25 packet switching technology and is used to transmit analogue signals such as telephone conversations.

PSDN stands for packet switched data network and is a data communication network. Packet switched networks do not establish a physical communication signal like the public telephone does (circuit switched network) Packets are sent on a fixed length basis and assigned with a source and a destination address. The packets then rely on the routers to read the address and route the packets through the network.

Mobile and Broadband Services

Digital Subscriber line(DSL) is mainly used to bring high bandwidth connections to homes and small business’s over a copper wire telephone line. This is can only be achieved if you stay within the range of the telephone exchange. DSL offers download rates of up to 6mbps allowing continuous transmission of video, audio and 3D effects. DSL is set to replace ISDN and compete with the cable modem in providing multimedia to homes. DSL works by connecting your telephone line to the telephone office over copper wires that are twisted together.

Asymmetric Digital Subscribers Line is most commonly used for home users. It provides a high download speed but a lower upload speed. Using ADSL, up to 6.1 megabits per second of data can be sent downstream and up to 640 Kbps upstream.

http://en.wikipedia.org/wiki/Symmetric_Digital_Subscriber_Line

Symmetric Digital Subscriber Line is a digital subcriber line which runs over one pair of copper wires. The main difference between ADSL and SDSL is the difference in upload and download speeds. SDSL allows the same upstream data rate and downstream data rate as ADSL upstream can be very slow.

[http://searchnetworking.techtarget.com/sDefinition/0],,sid7_gci558545,00.html

HDSL High bit-rate Digital Subscriber Line, one of the earliest forms of DSL, is used for wideband digital transmission within a corporate site and between the telephone company and a customer. The main characteristic of HDSL is that provides equal bandwidth in both directions.

IDSL is a system in which data is transmitted at 128 Kbps on a regular copper telephone line from a user to a destination using digital transmission.

The Local Loop enables operators to connect directly to the consumer via copper local loops and then add their own equipment to offer broadband and other services. This process involves operators accessing local exchange buildings to connect to a network of copper lines which connect them to homes and businesses. BT is an Example of a Local Exchange. The local loop connecting the telephone exchange to most subscribers is capable of carrying frequencies well beyond the 3.4 kHz upper limit.

Benefits of using DSL

DSL can provide virtually instantaneous transmission of voice, data and video over ordinary copper phone lines. A DSL connection can eliminate delays when waiting to download information and graphics from the Internet. It provides users with a cost effective high speed Internet connection. Another benefit is that a DSL connection is always on-line (like a LAN connection) with no waiting time for dialling or connecting.

There are now more than 10 million broadband connections in the UK. By December 2005 there were 9.792 million broadband connections in the UK and the average broadband take up rate during the three months to December was more than 70,000 per week.

Source by Chris Michael Jones

How To Sell Guitars – Make Money Selling Guitars and Musical Equipment

Are you looking to become a guitar reseller or open a guitar store?

I can tell you from experience that selling guitars is a fun and rewarding business to pursue. I love meeting musicians, helping to spread the music, and frankly, I just love being around guitars. Here are a few things to keep in mind if you’re learning how to sell guitars:

Business Licensing/Taxes

The first thing to keep in mind when selling anything in large quantities is business licensing and taxes. First, make sure you keep a record of everything you’ve sold. When it comes time to pay taxes, you’ll need to know the exact nature of the business you’ve done. One of the biggest worries with a start-up reselling business is getting audited by the IRS. In the event of an audit, the more information you can provide the better. As you begin to make a modest profit from reselling, make sure to set money aside for taxes. In many states, the buyer is required to pay sales tax for each transaction, and it’s the seller’s responsibility to set this money aside at the time of the transaction.

You will also need to obtain a business license. These are easy to acquire in most states for a small fee. In many states, a reseller business license will come with a Reseller Permit, with which one is able to purchase in bulk without having to pay a state sales tax. If you start selling a lot of guitars, such as more than 5 per month, then you should seriously consider obtaining a business license. Along with helping your business to be more accountable, it often earns you special rights and tax breaks that will help your business grow.

Finding Your Niche

There are many ways to sell guitars. Websites like Craigslist and eBay are great places to sell guitars, but they often have plenty of competition. Depending on where you’re located, Craigslist might be a great way to spread the word locally. There are many people who are good at repairing, modifying, or parting out guitars (taking them apart and selling the parts separately). Your “niche” will depend partially on your location, but mainly it will depend on your passion. If you love talking to people in a private setting, Craigslist might be your best bet. If you love tinkering with and parting out guitars, you could consider selling parts on eBay, or to a local music shop. If you love the idea of opening up a storefront, or augmenting one you may already own with some quality guitars, maybe you’re meant to be a guitar salesman. If you don’t know which method will work best for you, it can never hurt to try things out. You’ll never know if you don’t try!

Opening a Guitar Store

Opening a guitar store can be a huge challenge, but it can also be very rewarding. With the recent interest in the internet and online retail, many guitar shops are going out of business. Guitar Center and Musician’s Friend, two of the top guitar stores in the country, have grown so large that it’s often nearly impossible to compete with them directly. That doesn’t mean that it’s not possible. When opening a guitar store, make sure you’re offering a completely unique service. Whether your store has the perfect location, selection, staff, or pricing, it’s imperative that your store has the perfect something. We are living in troubling economic times, but that doesn’t mean that stores are closing for no reason. It simply means that, as the times change and technology evolves, so does the public demand for services. One must look at their business and be able to clearly see the areas in which they excel. Find out what makes (or could make) your guitar store great, and keep it up. Publicize your specialty, let everyone know what it is you do and why you’re the best for them.

Be Creative

As I said before, there are many ways to sell guitars. One of the best things you can do when creating your guitar business is to think outside the box and be creative. With enough creativity, you can create a whole new way to do business and thus create a whole new market. Regardless of the state of the economy, consumers will always pay for something great, something they believe in. Your customers are people, and they get excited about new things. People love having fun, and they love watching things improve and being a part of the future. It’s important to realize that your ideal guitar business model might be something that’s never been done before, but also something that there’s a huge demand for. Write a list of all the ways that you could sell guitars, then keep going, keep writing. No idea is too crazy. Creative businesses are the way of the future, and there’s nothing stopping you from creating the top guitar business in the world.

Shop for Discount/Wholesale Guitars in Bulk

You may have a pretty good idea of what your guitar business will look like and how you will start it up. Now you need the product, and you need it at the right price. How do the big guitar companies do it? Sometimes they have invested millions of dollars in their relationships with major manufacturers, ensuring that they get the best exclusive deal on all the goods. Most of the time, they just have a smart business model. It’s easy to get tons of musical equipment to sell, you just have to follow some strict rules, and pay top dollar. Many stores sell new, name brand equipment, and make 0% profit. The new equipment is just a way to get people in the door, and all of the profit is made from selling used equipment. This is just an example, but you should keep in mind that some products are made to attract customers, while others are made to give you the profits you’re looking for.

Working With Manufacturers

If you plan on selling refurbished guitars, sometimes it’s a great idea to supplement your inventory with new guitars directly from the manufacturers. Sometimes these guitars can be very difficult to acquire, and even more difficult to make a profit from, but they can definitely help get you some foot traffic (or internet traffic). Most manufacturers are more than willing to let you sell their products, assuming you follow their strict guidelines. For example, most will require you to have a storefront (which can’t be too close to another authorized dealer), sell a certain amount of guitars per month, purchase a large amount of their products up front (often you will not be able to choose which guitars to purchase), and charge no less than the price they determine. For a small business, it can be rough. But if you know what you’re getting into, working with manufacturers can be a great way to increase your business. If someone buys a new guitar from you, they’re more likely to come back for another. If someone walks in your door to buy a new guitar, they might be open to getting a refurbished one instead. The more business the better, as long as you can meet all the requirements.

Source by D Patrick Pflager

What is the Title Company’s Responsibilities?

Buying and selling real estate is certainly not an easy proposition; innumerable factors have to be taken into consideration, exhaustive researches have to be conducted, important financial and legal matters have to be efficiently handled, and endless paperwork has to be done meticulously. In such a complex scenario, the helping hand of the Title Company provides the much needed relief and peace of mind.

What is a Title Company?

Before we deal with the definition of the Title Company, it is essential to understand the term Title. A Title is basically a document that confirms that a particular person or company is the owner of the property. It is very different from Possession, where a person just holds the property, irrespective of whether he has any right to do so or not. Title, on the other hand, confirms true ownership.

The company that looks for such Title Deeds is called a Title Company. In addition to this, the company examines the title thoroughly to validate its authenticity, and also tries to delve out all the legal and financial issues related to the property. Furthermore, it facilitates the smooth closing of the real estate deal.

What exactly are the responsibilities of a Title Company?

The primary responsibility of a Company tackling issues related to the title is to search for the Title Deed to ascertain whether the seller is the true owner of the property or not. Apart from the ownership details, the company also looks for possession details. False claims can adversely affect the deal; for this reason, Title research is crucial.

The next important responsibility of a Title Company is to find out all the legal and financial upheavals that are bordering the property. Pending litigations, back taxes, first and second mortgages, debt, mechanical liens, and so forth are the matters of grave concern. Although they have to be tackled by the seller, but when the deal closes, the buyer becomes the owner of the property and thereby inherits all these hassles. If you wish to acquire a clean and clear title, hire a Title Company without a second doubt.

Yet another significant responsibility of the Company checking titles is to help in closing the deal properly. When the deal is about to be closed, tons of documents have to be read and signed. A good company not only makes the process really easy, but also helps you to understand all the intricate terms and phrases. When you mind is clear of confusion, you can think about and enjoy your newfound landowner status.

Some additional duties that a Title Company performs

An important responsibility of the Company dealing with titles is to issue title insurance. A superlative company would leave no stone unturned to authenticate the legitimacy of the Title Document. However, if the company makes any mistake in finding the ownership details or tracking the legal and financial problems associated with the property, the title insurance would provide you all the protection. Thus, title insurance is exceedingly important, but such a situation is preventable too. All you need to do is to select a Title Company that has an impeccable track record.

Source by Anubha S Shyam

4 Critical Tips on Store Layout When You Start a Dollar Store

First there was the dilemma of finding just the right location for your new business. Once the perfect location was found you spent what seemed like an eternity negotiating a satisfactory lease. With lease in-hand, you now realize you need to order store fixtures and dollar store merchandise. But before you can complete those tasks you need to determine the layout and finishing touches for your store. Well, you better go to work if you plan to open soon. You need to create a layout for your store. In this article I present 4 critical tips on store layout when you start a dollar store.

1) Funnel shoppers to the right as they enter your store. When you start a dollar store you will soon discover the majority of your shoppers prefer to walk through the front door and then immediately turn to their right. If you make it easy they will walk all the way to the wall and then proceed to walk up and down every aisle, examining the dollar store merchandise in your store. They will pick up the items they want and proceed to the checking out area. Make this easy by laying out your store so shoppers can turn right and move to the wall.

2) Arrange aisles so they run from the front to the back of your store. With the exception of fixtures right at the front of the store all other fixtures and displays should run from the front to the back of your store. This will support shopper desire to walk up and down the aisles examining the dollar store merchandise in every aisle. The layout also makes it easy for cashiers and other personnel to easily see what is happening throughout the store.

3) Include space for bulk displays, impulse items and seasonal products. While many dollar stores run their fixtures right to the checkout area, consider another idea. Provide space for bulk displays and impulse items in the area surrounding the checkout area. You’ll find shoppers will eagerly grab a few extra items in this area as they are approaching the cash registers. In fact your regular shoppers will appreciate the new, varied items they find in this area whenever they come shopping in your store.

4) When you start a dollar store don’t forget to use the walls as merchandise display area. Using the walls for dollar store merchandise display will build sales, and profits for your store. Plan to hang items from the side and rear walls in your store. As you are designing your fixture layout is sure to allow adequate room for peg hooks and shelves to be placed in these areas. Don’t make things so tight shoppers can’t get by as others are examining items hanging along a wall.

To your dollar store success!

Source by Bob Hamilton

How to Value a Gas Station For Sale

In most cases, the process of undertaking a gas station valuation can be a complicated endeavour. Far removed from the usual question of how you progress through the steps of the valuation itself, there are still quite a variety of variables to keep track of, including principally whether the property in question is leased or owned and whether it’s owned as part of a franchise agreement with a large oil company. First and foremost, always remember to apply a detailed process of due diligence and extend considerable attention to the financials when you’re working toward arriving at a top-notch value proposition.

As a buyer, you must be prepared to make certain assumptions and decisions yourself and not to rely on the often partial information supplied by the seller. It is up to you to determine the value of the business for you personally, as the amount the business owner thinks the gas station is worth has little if anything to do with its actual value.

Traditionally there are two different ways to look at gas station convenience store valuation, and these are either asset-based, where the income-producing assets are individually valued and totaled to make the purchase price, or cash flow based, which is the most popular. In this scenario, the overall profit is adjusted according to certain expenses, multiplied and used to establish a price. The multiple is essentially the premium placed on the business and can be anything from one, up to five times this figure.

Before you can arrive at a value that you are happy with, you need to have certain fundamental questions answered. If the business occupies rented property you must engage with the landlord. Many landlords are not interested in issuing a new lease unless they can be sure that the incoming person has experience running this particular type of business. However, they are almost always willing to negotiate as they do not want to see the property sitting around empty!

As an owner of a gas station and convenience store you will have many different suppliers and vendors, some of which are absolutely critical to the ongoing success of the business. Never assume anything and make sure that you can enjoy an ongoing good relationship and great trading terms with these entities.

When considering cash sales, if the seller can’t prove part of the sales they’re talking about, then you can’t include it as part of your value assessment. Often, gas station owners will speak with pride about the incredible volume of cash sales, and tell you about it almost as if it’s something magical. Don’t forget that they’ve been benefiting from avoiding paying taxes on this part of their income, can almost never actually prove that it exists and therefore can’t really expect to make a profit from it through selling their business.

Most often you will want to consider using the total owner benefit as a base to create a valuation for the business. This is defined as the net income of the business added to the owner salary, any perks, depreciation and interest less any amount that you might have to put aside for capital projects assessed. With regard to average business valuation, gas station or convenience stores that are full service will often command 2 to 3 times whatever the owner benefit figure it is. If it is a smaller establishment and self service, 1 to 2 times. Consider the volume of trade versus the amount of hours that you will have to put in. A 24-hour, seven-day a week establishment takes a lot of management and oversight.

While business financials and owner benefit multiples are primary to your decision-making process, remember to consider a host of other variables:

– During the process of observation, use a period when you actually count the number of patrons coming in and out of the station to enable you to come up with a good average for traffic.

– Remember that you should aim for between 25 and 33% return on your cash investment when purchasing a business such as this, although if you are going to be an absentee owner you should be prepared to accept a lower return.

– Watch out if the owner appears to be working excessive hours or is reliant on a number of his family members to help him staff the operation. Pay attention to employee records and costs and ask yourself whether you are prepared to be as hands-on as he appears to be.

– Consult with local authorities to see if there are any major road construction projects planned. Sometimes these are inevitable but can have major disruptive forces.

To really focus the attention of the seller as you establish a value for your business purchase, why not ask him or her to engage in an “earn-out” scenario, where a portion of the sale price is returned to them over a period of time subject to certain conditions. This will ensure that you have their full attention during the disclosure phase!

Source by Richard K Parker

Payroll Utah, Unique Aspects of Utah Payroll Law and Practice

The Utah State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

State Tax Commission

Withholding Tax Development

210 North 1950 West

Salt Lake City, UT 84134

(801) 297-2200

(800) 662-4335 (in state)

http://tax.utah.gov/

Utah allows you to use the federal form W4 to calculate state income tax withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Utah cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

In Utah supplemental wages are required to be aggregated for the state income tax withholding calculation.

You must file your Utah State W-2s by magnetic media if you are required to file your federal W-2s by magnetic media.

The Utah State Unemployment Insurance Agency is:

Department of Workforce Services

140 E. 300 South

P.O. Box 45288

Salt Lake City, UT 84145

(801) 536-7400

[http://jobs.utah.gov/employer/emservices.asp]

The State of Utah taxable wage base for unemployment purposes is wages up to $22,700.00.

Utah requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

Unemployment records must be retained in Utah for a minimum period of three years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The Utah State Agency charged with enforcing the state wage and hour laws is:

Labor Commission

Anti-Discrimination and Labor Division

P.O. Box 146630

Salt Lake City, UT 84114-6630

(801) 530-6801

[http://www.labor.state.ut.us/]

The minimum wage in Utah is $5.15 per hour.

There is no general provision in Utah State Law covering paying overtime in a non-FLSA covered employer.

Utah State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

  • Employee’s name
  • Employee’s address
  • Employee’s social security number
  • Employer’s name
  • Employers address
  • Employer’s Federal Employer Identification Number (EIN)

This information must be reported within 20 days of the hiring or rehiring.

The information can be sent as a W4 or equivalent by mail, fax or mag media.

There is a $25.00 penalty for a late report and $500 for conspiracy in Utah.

The Utah new hire-reporting agency can be reached at 801-526-4361 or on the web at http://jobs.utah.gov/newhire/

Utah does not allow compulsory direct deposit except for large employers with 2/3 of employees already on direct deposit.

Utah requires the following information on an employee’s pay stub:

  • itemized deductions
  • Utah requires that employee be paid no less often than semimonthly; monthly if employee hired for yearly salary.

    Utah requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed ten days; wages paid monthly—7th of next month.

    Utah payroll law requires that involuntarily terminated employees must be paid their final pay with in 24 hours and that voluntarily terminated employees must be paid their final pay by the next regular payday.

    Deceased employee’s wages must be paid when normally due to successor after affidavit stating estate does not exceed $25,000 at least 30 days since death, no petition for executor is pending, and entitlement to payment.

    Escheat laws in Utah require that unclaimed wages be paid over to the state after one year.

    The employer is further required in Utah to keep a record of the wages abandoned and turned over to the state for a period of 5 years.

    Utah payroll law mandates no more than $3.02 may be used as a tip credit.

    In Utah the payroll laws covering mandatory rest or meal breaks are only that all employees must have a 30-minute meal period after 5 hours; 10 minutes rest each 4 hours.

    Utah statute requires that wage and hour records be kept for a period of not less than three years. These records will normally consist of at least the information required under FLSA.

    The Utah agency charged with enforcing Child Support Orders and laws is:

    Office of Recovery Services

    Department of Human Services

    515 E. 100 S.

    P.O. Box 45011

    Salt Lake City, UT 84145-0011

    (801) 536-8500

    http://www.ors.state.ut.us/

    Utah has the following provisions for child support deductions:

    • When to start Withholding? First pay period after 5 working days from service.
    • When to send Payment? Within 7 days of Payday.
    • When to send Termination Notice? Within 5 days of termination.
    • Maximum Administrative Fee? one-time $25 fee
    • Withholding Limits? Federal Rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.

    Source by Charles Read

    Driving A Race Car – Do’s And Don’ts

    For most racers, Saturday-night short track racing is a trial-and-trial error sport. Most racers lack big-time budgets and free time during the week to test new ideas. So knowledge generally come from two sources: advice from more experience racers and trying new things out for yourself on race night. If you are lucky, you can confirm whether or not a new setup works during the limited practice you get before qualifying. But then you just cannot be sure until you test that setup in the heat of the competition.

    Like testing, many drivers learn how to drive a race car by simply going out and doing it. Driving a race car is a technique which only you the driver has to develop on their own. If you have a good night, take what you’ve learned from that event and try to duplicate it in the next week. But mistakes can be very costly. A mistake on the track can mean bent sheetmetal, broken parts, tempers flaring, hurt feelings, and spending late hours in the shop with possibilities of not making it to the track the next week. That’s why its much easier to to avoid bad driving habits before they begin. After all, learning from you mistakes on the track may sound like a good theory, but it’s not the best idea when those mistakes can cost you cold, hard cash.

    In order to avoid mistakes on the track, pay close attention to what’s happening in front of you and behind you at all times. Do not take risky chances. Races are never won on the first lap. In order to earn respect from more experienced drivers, you show respect. Always drive other drivers the way you want to be driven. Remember, racing is an expensive sport.

    You must always drive your line and your line only

    The biggest thing I try not to do is following the guy in front of me. In other words, when you chase the car in front of you and do what he’s doing, you are going to make the same mistakes as he does. This may sound like a pretty simple thing not to do, but it’s easier fall into this habit than you might think. When you’re following a car you’re always looking a way to get around him, and it’s easy to start driving the same line as he is. In order for you to get around him, you must change your driving line to confuse him and get around him. So try a different line, change your apex, or do something to make him make the mistake, then take advantage of it.

    Along those same lines, I think a lot of racers stick with old habits for too long, and tha’s because what got most of us to where we are as race car drivers is driving very, very hard. Most racers want to push their cars over the limit, and put too much motor than the car and tires can handle. People have the equipment in every series to run really hard for a few laps. But the next thing you know, the tires start to go away but the motor is still there, and suddenly everything changes with the way the car drives. In that situation you’re just overdriving the car. You must set the car up to last throughout the race and not overdrive the car at the beginning. You have to find out how the car likes to be driven with a full tank of fuel, partial load of fuel, and with the fuel cell nearly empty. How you do you need to adjust your driving style when the tires are worn versus when they are brand new? Being able to do this is the difference between winning a losing.

    Don’t overdrive your car

    It’s important not to develop a habit of overdriving the race car. Overdriving means when you’re pushing the car beyond it’s potential. General rule it’s not a good idea to be on the brakes and the gas at the same time. That rarely works out well.

    When you’re on the brakes and gas at the same time, that overheats the brakes quickly. It’s also hard to get a car to rotate and turn if you are on the brakes. It’s always best to brake before entering the turns and let the car roll. That allows the suspension to set so the car can rotate. It may feel slower, but it will turn better, be easier to drive, and overal make you faster.

    Never abuse your tires

    One of the biggest problems I see with inexperienced drivers is they have a tendency to hammer the gas pedal coming out of the turns. This is what separates the men from the boys. With the power available from these engines, it’s easy to give the engine too much throttle and spin the tires. This is especially easy to do on short tracks, or flat tracks with tight turns. When you do that, you end up doing what we call “frying” the rear tires. This puts excessive heat into the tire, and also burns what we call the “goodie” off the tire. Your best laps are when the goodie is still on the tire.

    Tires last awhile, but once you start spinning them, the maximum traction goes away pretty quickly. The tires are the first thing that takes abuse on a race car. If you can keep the momentum of the race car up through the corner and get into the throttle more smoothly, you will increase your speed. It takes a lot of touch to be able to give all the throttle the car can handle without spinning the tires, but once you’re able to do that, you are going to be faster for more laps.

    It gets really tricky when your car starts getting loose. At this point you have less grip available and the car wants to spin out. When you are loose, it’s very difficult not to spin the tires. Come into the throttle a little bit sooner and use the power of the engine to control the wheel spin. The idea is to keep the engine from blasting the tires by being even smoother on the throttle than before.

    Having a spotter

    Having a good spotter that will work with you is very important, especially on restarts. When everybody is lined up in one or two rows, it can be difficult to see what’s going on three to five cars ahead of you. That’s when you need a good spotter to let you know if the lead car is taking the green flag clean or if he’s checking up at the last minute to stack up the field before he takes off. If your spotter is on his toes, he can tell you if the good lane is the outside or if you need to avoid trouble forming ahead of you.

    Finally, I think one of the most important things to remember is that you have to race people the way you want to be raced. Show respect for other people and their equipment. If you don’t, then that kind of stuff is going to come right back on you later. It can be difficult to see what’s going on with three or five cars lined up in front of you. That’s when you need a good spotter to let know what’s going on in front of you and behind you. He’s also you extra set of eyes so you don’t have to multi-task and break concentration on what’s ahead of you. If your spotter is on his toes, he inform you of your surroundings and keep you out of trouble.

    Source by Benjamin C Oakley

    Integrated Marketing Communications – 5 Primary Communication Tools

    Communication is always one of the most important and vital strategic areas of an organization’s success. You can have the best or most innovative products or services, but if your internal and external communications are weak, then the demand for your products or services raises a personal flag of concern. When communicating the value of your products or services, you want to focus on how they will benefit your clients.

    When planning your strategy for Integrated Marketing Communication or IMC, you want to have dialogue with your customers by inviting interaction through the coordinated efforts of content, timing and delivery of your products or services. By ensuring direction, clarity, consistency, timing and appearance of your messages, conveyed to your targeted audience, these factors will help avoid any confusion about the benefits of your brand, through the connection of instant product recognition.

    When looking at your marketing mix, you’re examining price, distribution, advertising and promotion, along with customer service. Integrated marketing communication is part of that marketing mix included in your marketing plan. IMC strategies define your target audience, establishes objectives and budgets, analyzes any social, competitive, cultural or technological issues, and conducts research to evaluate the effectiveness of your promotional strategies.

    If companies are ethically planning, communicating, and following industry guidelines, they will most likely earn the trust of their customers and target audience. There are five basic tools of integrated marketing communication:

    1. Advertising:

    This tool can get your messages to large audiences efficiently through such avenues as radio, TV, Magazines, Newspapers (ROP), Internet, Billboards and other mobile technological communication devices. This method can efficiently reach a large number of consumers, although the costs may be somewhat expensive.

    2. Sales Promotion:

    This tool is used through coupons, contests, samples, premiums, demonstrations, displays or incentives. It is used to accelerate short-term sales, by building brand awareness and encouraging repeat buying.

    3. Public Relations:

    This integrated marketing communications tool is initiated through public appearances, news/press releases or event sponsorships, to build trust and goodwill by presenting the product, company or person in a positive light.

    4. Direct Marketing:

    This tool will utilized email, mail, catalogs, encourage direct responses to radio and TV, in order to reach targeted audiences to increase sales and test new products and alternate marketing tactics.

    5. Personal Selling:

    Setting sales appointments and meetings, home parties, making presentations and any type of one-to-one communication, to reach your customers and strengthen your relationship with your clients, initiate this IMC tool.

    Decisions linking the overall objectives and strategies during the marketing planning phases help to evaluate and fine-tune the specific activities of integrated marketing communication. Before selecting an IMC tool, marketing, product and brand managers must look at social, competitive, legal, regulatory, ethics, cultural and technological considerations. One thing you want to avoid when activating the tools of integrated marketing communication is reaching inappropriate audiences and causing controversy. That could be damaging when trying to build brand awareness and encourage consumer spending with your company. When marketing managers examine the beliefs, emotions and behavior of their targeted audience towards their brand, they can influence their beliefs to achieve product awareness, by attracting attention to their promotional campaigns.

    Source by Kym Gordon Moore