The private-sale sites — a misnomer because most of these so-called exclusive sites are open to anyone who signs up — have become a thriving corner of online commerce. Sites using the same “while supplies last” approach have sprung up recently to sell home furnishings, beauty products and travel packages.
Private-sale sites are attracting brand-name investors. Kleiner Perkins Caufield & Byers, the venture capital firm that backed Google and Amazon.com, invested on Wednesday in One Kings Lane, which sells home décor. Gilt Groupe raised $55 million from Matrix Partners and General Atlantic, and Rue La La’s parent company was recently acquired byGSI Commerce for $180 million.
It works for the fashion industry, too, because as the economy slumped, stores deeply cut inventory, which left some designers with excess stock, depending on their production calendars. Some high-end brands view the sites as a place to unload inventory without sullying their image by having their merchandise appear on Overstock.com or on the racks at Filene’s Basement. The members-only Web sites also ensure that search engines will not locate and list the discounted products.
Author: Debra Watkins
Debt Cancellation “Insurance”-Not as Good as it Sounds
On Marketplace; Tess Vigeland interviewed Bob Sullivan, who covers Internet scams and consumer fraud for MSNBC.com. Listen to the show or read the transcript and learn about offers by credit card companies to pay your balance if you are laid off, injured, or fired, and how expensive they can be.
Texas Fiscal Notes
We are lucky to live in a state that is urban and urbane, but still celebrates the rural traditions that make Texas what it is.
In this issue of Fiscal Notes, you will learn that hunting is big bucks to the state’s economy – $2.2 billion annually. And deer are the most popular quarry. But to me, deer hunting has a more personal connection.
When I was a young girl, Thanksgiving meant going to my grandparents’ East Texas farm near Magnolia. Early on Thanksgiving morning, the men would go hunting. Invariably, my grandfather would return with a deer, dressed and freezer-bound. To my child’s mind, deer hunting and the holiday were synonymous. I thought families everywhere were hunting!
I know better now. But it’s hard to live in Texas and not be touched by hunting. It is not just a sport for rural Texans. Six in 10 hunters live in urban areas. Eight percent are women. I didn’t grow up to be a hunter. I prefer to bait a hook and try my luck. But Texas is a better place because of our great outdoors and the hunting it affords.
Enjoy this issue and please share with others.
Delane Caesar
Director
Public Outreach & Strategies
Read Fiscal Notes.
Estate Tax Relief and Extenders
On December 2, Democratic members of the House Ways & Means Committee predicted that the House would take up an estate tax relief bill this week. H.R. 4154, the “Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009, ” is slated to be considered by the House of Representatives on December 3. Ways & Means Select Revenue Subcommittee Chair Richard Neal (D-MA) said he expected that the House would actually pass the bill on December 3. An extenders bill may be taken up as early as next week.
(Checkpoint’s Newsstand)
The Flu and Contingency Planning
Kate Barr of the Nonprofits Assistance Fund writes:
I have not had the H1N1 flu. I hope to keep it that way. However, this flu is starting to really affect me because of the number of people who are not so lucky.
As an example, in just the last week:
- I attended two important meetings where key participants were missing in action.
- Three training events and webinars were canceled.
- A professional associate stayed home with his son for several days.
Two days ago we had to scramble to replace the speaker for one of our own training events. That really brought this home.
The Future of Global Finance
New York Times Book Review, Liaquat Ahamed
The build-up of dollars abroad transformed the United States into a gigantic bank, and like any bank, it was vulnerable to a run.
Labor Day
Labor Day was established to honor American workers. The form for the celebration of Labor Day was outlined in the first proposal of the holiday: A street parade to exhibit to the public “the strength and esprit de corps of the trade and labor organizations,” followed by a festival for the workers and their families.
The US Department of Labor Wage and Hour Division works to promote and achieve compliance with labor standards to protect and enhance the welfare of the of the nation’s workforce. The FLSA establishes minimum wage, overtime pay, record keeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.
Fans Pay Either Way for TV Blackouts
reports Richard Sandomir in the September 5, 2009, edition of the New York Times. NFL Commissioner Roger Goodell refuses to back down from his position of not waiving the blackout policy for the people of Detroit where the unemployment rate approaches 30%. Goodell is quoted as saying that the 36-year-old blackout policy has been very good for the game, for the fans, and for the teams.
But if enough people can’t afford the tickets, why penalize a team’s hometown fan base with the blackout hammer — making them drive 75 miles outside the market or searching for a pirated TV or Internet signal to catch the game?
Independent Contractor or Employee?
The IRS has compiled the following top ten list of things every business owner should know before classifying a worker as either an employee or independent contractor (IRS Summertime Tax Tip 2009-20, 8/21/09) :
(1) Three characteristics are used by the IRS to determine the relationship between businesses and workers: behavioral control, financial control, and the type of relationship.
(2) Behavioral control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training, or other means.
(3) Financial control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker’s job.
(4) The type of relationship factor relates to how the workers and the business owner perceive their relationship.
(5) If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
(6) If you can direct or control only the result of the work done — and not the means and methods of accomplishing the result — then your workers are probably independent contractors.
(7) Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
(8) Workers can avoid higher tax bills and lost benefits if they know their proper status.
(9) Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
(10) You can learn more about the critical determination of a worker’s status as an independent contractor or employee at the Small Business/Self Employed Tax Center on the IRS website at http://www.irs.gov/businesses/small/index.html. Additional resources include IRS Publication 15-A (http://www.irs.gov/pub/irs-pdf/p15a.pdf), IRS Publication 1779 (http://www.irs.gov/pub/irs-pdf/p1779.pdf), and IRS Publication 1976 (http://www.irs.gov/pub/irs-pdf/p1976.pdf).
- Three characteristics are used by the IRS to determine the relationship between businesses and workers: behavioral control, financial control, and the type of relationship.
- Behavioral control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training, or other means.
- Financial control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker’s job.
- The type of relationship factor relates to how the workers and the business owner perceive their relationship.
- If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
- If you can direct or control only the result of the work done — and not the means and methods of accomplishing the result — then your workers are probably independent contractors.
- Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
- Workers can avoid higher tax bills and lost benefits if they know their proper status.
- Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
- You can learn more about the critical determination of a worker’s status as an independent contractor or employee at the Small Business/Self Employed Tax Center on the IRS website Additional resources include IRS Publication 15-A , IRS Publication 1779 , and IRS Publication 1976 .
Build your real estate knowledge
With the attractive opportunity to receive up to $8000 from your fellow taxpayers if you are a first time home buyer or have not owned a home for three years, there are some important issues to consider before you buy a home:
Set realistic price guidelines:
Determine what size mortage payment will fit into your monthly budget. As a general rule, your monthly housing cost should not exceed 25 to 30 percent of your gross monthly income (before taxes). Monthly housing costs include your mortgage principal payment, interest payment, property taxes and home insurance.
Don’t forget the extras:
Remember the other expenses you’ll be paying each month. You may also need to pay for items such as moving expenses, new furniture, home appliances, and improvements and repairs. Ideally, you should include in the percentage given above an amount saved as a repair allowance.
Your credit situation:
Before starting your home search, evaluate your current credit situation and credit history. This allows you to take steps to repair your record before you apply for a mortgage.
Remember the tax advantages:
On your rearly tax return, you can deduct the interest you pay to buy, construct, or improve your principal residence. You can also deduct the real estate taxes you pay on your home.