Health insurance

President Obama signed into law today the Small Business Jobs Act. If you are an entrepreneur or run a small business, there are a number of key provisions that can help.

  1. Successful SBA Recovery Loan Provisions will be extended. The extension of these provisions provides the capacity to support $14 billion in loans to small businesses. That’s a big wade of cash which your business may be able to tap into.
  2. Maximum Loan Size for The Largest SBA Programs will be more than doubled.  This could help to provide greater access to working capital loans that small businesses use to purchase new inventory and take on their next order, which could help small business owners  create new jobs.
  3. A New $30 Billion Small Business Lending Fund. I am really interested to see how this is going to work. Currently, many small businesses are having difficulty obtaining access to capital because banks have cut off their credit. This provision would provide incentives to small banks to lend to small businesses.
  4. An Initiative to Strengthen Innovative State Small Business Programs – Supporting Over $15 Billion in Lending.  I am not sure how this will play out.
  5. Eight New Small Business Tax Cuts – Effective Today:
  • Zero Taxes on Capital Gains from Key Small Business Investments.
  • Extension and Expansion of Small Businesses’ Ability to Immediately Expense Capital Investments.
  • Extension of 50% Bonus Depreciation.
  • A New Deduction of Health Insurance Costs for Self-Employed. This is huge for self-employed individuals.  If you are self-employed, you can get a deduction for the cost of health insurance for yourself and your family members in calculating your self-employment taxes.
  • Simply deduction for cellphone bills. You can now deduct the full cost of your cellphone without providing documentation about each and every phone call.
  • An Increase in the Deduction for Entrepreneurs’ Start-Up Expenses. Entrepreneurs can deduct from their taxes for this year from $5,000 to $10,000 (with a phase-out threshold of $60,000) in expenditures.
  • Limitations on Penalties for Errors in Tax Reporting That Disproportionately Affect Small Business. If your business get audited, this should help.

What do you think of this bill? What more (or less) do you think the government should do to help small businesses.

The Law Office of Frederic R. Abramson represents small businesses in New York State.

It’s 5:00 on Friday and your boss calls you into her office.  You probably noticed that business has not been going well.  A long time customer has left and there is simply not enough work to go around.  Your boss, tearing a bit, breaks the news and offers you a severance package. Should you take it?

Believe it our not, you can negotiate a severance agreement.

  1. Understand that your emotions while be on high after you are initially handed the agreement.  The worst thing that you can do is let your boss “have it.” Be cordial and ask for time to review the agreement.  You have the legal right to do so.
  2. Don’t sign anything immediately. Your boss may ask you sign a waiver, which could release any future rights that you may have in the event of a potential lawsuit. So if you a fired while you are pregnant, waive your discrimination case goodbye.
  3. Be aware that your employer cannot withhold your wages if you fail to sign the agreement.
  4. Have you been paid all over your benefits? Review your employee handbook or employment contract to see if you are owed any vacation time.
  5. How is the severance payment being disbursed? In a lump sum or over a period of time.  There could be tax benefits for choosing one form of payment over another.
  6. What health insurance is being offered?  Look into possible of extension of your Cobra benefits.
  7. Your employer may want you to sign a non-compete agreement or non-disclosure agreement.  If you sign a non-compete agreement, you may have trouble seeking new employment if the terms are not analyzed.  A non-disclosure agreement may prohibit you from disclosing trade secrets to a potential new employer.
  8. Do you have any stock options?
  9. In some cases, your employee handbook or agreement may provide that your employer will pay your legal expenses for an attorney review your severance package.
  10. You can negotiate with your employer and agree to the language of your recommendation.

Don’t negotiate your severance agreement alone. The Law Office of Frederic R. Abramson reviews, drafts and negotiates severance agreements.  Call me at 212-233-0666 for a free consultation.

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