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3 New Coronavirus Tax Credits that SMB’s Should Know About

June 18, 2020 by Guest Author Leave a Comment

By Kayla Matthews

To keep businesses afloat during the coronavirus crisis, the federal government launched several new tax credits for employers of all sizes. These three coronavirus tax credits are designed to help you manage the financial burden of covering sick and family leave for your employees, as well as any government-mandated closures you may have complied with.

Employee Retention Credit

The employee retention credit is “designed to encourage businesses to keep employees on their payroll.” The tax credit, which is refundable, is 50 percent of up to $10,000 per employee in wages paid by your business. You can claim it so long as you’ve been impacted by COVID-19 and aren’t a small business that’s taken a small business loan.

For the purpose of the credit, impacted means one of two things:

During 2020, your business has been fully or partially suspended by the government due to COVID-19 for the quarter, or
During 2020, your gross receipts were below 50 percent of the comparable quarter in 2019.

If your gross receipts rise above 80 percent for a comparable quarter in 2019, you’ll no longer be considered impacted by COVID.

The Employee Retention Credit is not to be confused for the Paycheck Protection Program, another federal program designed to encourage businesses to keep employees on payroll during the COVID-19 crisis. You cannot receive both the Employee Retention Credit and a PPP loan.

The Paid Sick Leave and Family Leave Credit

These two credits are designed to compensate employers for employees who are unable to work due to COVID-19.

As an employer, you are obliged to provide employees who are unable to work (or telework) due to COVID-19 with paid sick leave for up to two weeks — whether they are sick, have been advised to self-quarantine or are caring for someone who has been advised to self-quarantine. You are also entitled to a fully refundable tax credit that’s equal to the cost of that paid sick leave.

Employees are also entitled to paid family leave if they are unable to work because they are caring for a child due to the closure of schools and childcare providers. You are also entitled to a fully refundable tax credit for the cost of this family leave.

In both cases, the paid leave will be equal to two-thirds either their regular hourly wage or minimum wage, whichever is higher. These leave payments won’t affect the employee’s standard rate of basic pay. This means that, for example, if an employee is paying for family life insurance, and the value of that insurance is based on rate of basic pay, taking sick or family leave shouldn’t affect the coverage provided.

How Do I Receive These Credits?

You can be immediately reimbursed for the credits by reducing the required deposits of payroll taxes by the value of the credit. To do so, you’ll need to calculate the size of the credit you’ll receive for the preceding quarter and apply it to your business’s Form 941, Employer’s Quarterly Federal Tax Return.

If your tax deposits aren’t enough to cover the credit, you can request an advance payment from the IRS using Form 7200, Advance Payment of Employer Credits Due to COVID-19. You can submit Form 7200 any month during the month following the quarter for which your claim is being made.

The IRS hasn’t yet put forward timetable for when these advances will be sent out, however. If your business needs funds urgently, it may a be a good idea to look to other sources of funding.

About the Author: Kayla Matthews writes about communication and workplace productivity on her blog, Productivity Theory. Her work has also appeared on Talent Culture, MakeUseOf, The Muse and Fast Company.

Featured Photo by Kelly Sikkema on Unsplash

How to Use AI for Your Business

May 28, 2020 by Guest Author Leave a Comment

By Kayla Matthews

One of the most significant breakthroughs of the past few decades has been artificial intelligence. However, AI has mostly reserved for big tech companies that could afford to research how it worked and develop custom AI-powered tools — until recently.

There is now a variety of tools, platforms and solutions directed at end-users who don’t necessarily have deep AI or technical knowledge — meaning that almost every business can take advantage of the tech. Here are a few different applications of AI for your business, regardless of size.

Customer Service Chatbots With AI

One of the biggest benefits of AI is that it can overcome some of limits of conventional automation. Customer support chatbots, for example, have proven tough to automate well. Most of the time, the hard-coded, pre-written responses that make these bots work make them inflexible — and, as a result, not great at helping customers. Usually, if a customer needed a question answered and they turned to a chatbot, they’d end up speaking to a customer support rep, anyway — or click away when they couldn’t get an answer.

While these conventional chatbots are clunky, however, most customers still want support right away. They’re also willing to talk to a chatbot if it means getting support sooner. For many businesses, especially smaller businesses, service reps can’t be available 24/7. Some kind of automated solution will probably be necessary — but conventional chatbots can’t always provide quality customer service.

AI chatbots take a more intelligent approach. These bots use tech like natural language processing to more intuitively read and respond to customer questions. They’ve proven much better at handling basic customer requests than conventional bots. According to data from Salesforce, 64 percent of service agents with AI chatbots are able to spend their time handling complex customer issues, compared to 50 percent of agents with non-AI chatbots.

These AI chatbots also collect a lot of information — like what a customer needs or even how they’re feeling — that they can pass on to a customer support rep, if the bot can’t handle the customer’s request. Reps who pick up requests from a chatbot will have a much better idea of how to help the customer as a result.

AI-Powered Workforce Management

Another strength of AI is its ability to find patterns in vast amounts of information. This means that AI tools are great at using large data sets — like historical sales data — to make predictions.

Most businesses with employees generate serious amounts of staff and customer data, but don’t take full advantage of this information. AI-powered workforce management tools can apply AI algorithms to your business’s data to optimize employee scheduling and forecast workforce needs. The insights these platforms generate can help you avoid over- or under-staffing. By offering an estimate of how many customers will be in your store, hour-by-hour, you can more accurately schedule employees.

Business Intelligence With AI

Business intelligence (or BI) tools with AI also allow businesses to more effectively use the data they create. These tools help companies collect, organize and analyze business data — information on sales, marketing, payroll and anything else — so they can make better decisions about their business direction.

Most modern BI platforms from major companies — like Microsoft’s Power BI or IBM’s Cognos Analytics — come with AI tools active by default. If you learn the platform, you won’t need any advanced training to take advantage of these features. Often, the AI features actually make the platforms more valuable and easier to use. For example, Power BI includes natural language processing. With this feature, it’s possible to type in a plain-language request — like “what were our highest-selling products last quarter” — and you’ll receive a visualization of that data, no menu-navigation or coding necessary.

Applications of AI for Any Business

Artificial intelligence has changed how the biggest businesses analyze data and solve problems. New AI-powered tools and platforms allow businesses of any size to do the same thing. Chatbots with AI can intelligently respond to and answer customer questions. Analytics platforms can take the data that businesses already generate and analyze it.

As AI tech becomes more advanced, it’s likely that new AI tools will be developed, and that existing platforms will continue to add AI-powered features.

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How Will Business Productivity Change After COVID?

May 21, 2020 by Guest Author Leave a Comment

By Kayla Matthews

COVID-19 has changed almost every aspect of daily lives across the globe. For businesses, especially, things look different now — working from home and quarantines have kept people apart to slow the spread. Now, you and others are looking for answers as to what comes next. For business productivity, things are going to shift.

From remote work to the integration of new technology, your company will likely see some changes. Though the pandemic is still in full swing, its current state and effects will influence what comes next. Business operations and productivity are going to adapt, but how that happens will depend on certain factors.

Regrouping

The first factor is the regrouping stage. Businesses will have to work out the details of working from home, unemployment levels and employee benefits. The coronavirus has affected each of these areas for businesses of all sizes. From here, your business will need to focus on how it gets back to work.

Remote work is likely to stick around for quite a while. Even after the pandemic passes, businesses and employees may reevaluate their work. If they don’t need to come into an office, they might continue to work from home. This decision saves on commuting time — which leads to the potential for different work hours.

As more and more people continue to work remotely, work hours may become more flexible. Some people may start earlier or later in the day and change their schedules to work with their personal lives post-virus.

Some businesses have laid people off due to the virus. While essential businesses have been able to remain in operation, non-essential enterprises have had to shut down. This change has led to record spikes in unemployment claims in the United States.

After COVID-19 passes, companies and organizations will then need to focus on hiring talent. To improve the hiring process, you’ll want to keep some things in mind.

First, new talent is going to question how your business handled employee benefits during the outbreak. Your company will need to have open and honest communication about the subject, as well as about the new hiring process. Additionally, certain businesses that need employees instantly will have to streamline the process.

New Technology

After regrouping, the second post-COVID phase will include businesses investing in newer technology. While human productivity has understandably decreased during this pandemic, machine productivity is shining through.

For many businesses, employees are only able to do so much from home. Places like science labs or restaurants can’t fully function remotely. However, artificial intelligence (AI), machine learning and robotics will all start to become more standard in businesses. Many larger corporations already use these innovations, but smaller and medium sized-enterprises will begin as well.

Technology can’t get sick. Thus, it’s reliable for continuing to generate revenue and keep business productivity up. Certain businesses, like restaurants, may not be able to fully use technology to operate.

Other aspects of these innovations, though, like automation and data analytics will come in handy. This technology powers tools from chatbots to voice-automated customer service to predictive data. Your business may be able to use these resources and this information to continue to operate as best as it can for future pandemics or situations.

Technology can also operate at all hours of the day. To keep a business going in a pandemic, it needs to be available at all times for sales and assistance. As innovations continue to emerge that make accessibility possible, businesses will integrate them. More pandemics or unforeseen situations may come after COVID-19. This pandemic has caused businesses to rethink their productivity both for the present and the future.

New Productivity

The meaning of business productivity has shifted during this time. Employees are juggling the transition to working from home, the stress of the situation and staying on top of their work. In the future, you will be seeing changes like these come to businesses of all sizes, but especially medium and smaller ones.

Transitioning back to normal life won’t be entirely the same as it was. Using these changes to your advantage, though, is the best bet for staying on top. Productivity will fluctuate and take on new forms, like technology and working from home. Depending on how fast scientists develop a vaccine, these changes will continue to solidify in the meantime.

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7 Mistakes to Avoid in Digital Marketing

May 14, 2020 by Guest Author Leave a Comment

By Michael Deane

Digital marketing can be tough and not getting the desired results can happen even to the most experienced marketers. The digital landscape is constantly changing and evolving, and you need to keep up to date with the best digital marketing practices at all times.

Digital marketing blunders can have a detrimental effect on your business and your finances. Lack of results in driving traffic, lead conversions, and sales happen when your digital marketing strategy is inadequate.

Let’s review the seven most common and biggest digital marketing mistakes you need to avoid if you want to promote your business and help it thrive.

1. Failing to Set Realistic Goals

Setting unrealistic goals is one of the common mistakes when it comes to this strategy. It is not rare for digital marketers to overestimate the potential of their digital efforts and to expect all their prospects to convert into sales, which is highly unrealistic.

Another downside of this way of thinking is having doubts about the benefits of digital marketing.

It is best to set clear goals you can achieve in the short, medium, and long-run with this strategy. To do so, it’s a good idea to observe past trends and the experiences of similar businesses operating in your industry.

Also, it is crucial to set specific and measurable goals since that will allow you to better track your digital marketing efforts.

2. Not Knowing Your Target Audience

The first step when developing a digital marketing strategy is taking the time to get to know and understand your target audience.

Without this information, you risk losing money since you can only make assumptions about who you’re promoting your company to. When you know who your ideal customer is as well as who your buyer personas are, you can create content that will resonate with their problems and interests.

Learn as much as possible about your target market and establish a connection with those who are most likely to be interested in your offer, instead of trying to sell your products or services to random individuals.

To research your target audience, start with identifying who your current customers are. Social media analytics can provide in-depth information about this.

Creating buyer personas is one of the best ways to better understand your audience. When you know their needs, preferences, and pain points, you can generate amazing content that will attract them to your brand.

3. Failing to Respond Promptly to Your Customers’ Inquiries

When you manage multiple channels and have to manually respond to customer interactions, it can become overwhelming or even impossible. On the other hand, failing to respond to your audience’s inquiries promptly can have dire consequences for your business.

Responsiveness and excellent customer service are critical in today’s market, regardless of the industry.

The solution to this is chatbot technology. It can help you engage with your customers in real-time and lead to better business results.

When you choose the right chatbots for your business, you can enhance customers’ experience, satisfy their needs, and answer their questions 24/7 without having to put them on hold. This will reflect in your profit since more leads will turn into sales with access to the right information at hand.

Conversational chatbots can save your business money since you won’t have to hire additional customer reps, while the conversations can be designed to use your brand’s particular tone. A call deflection bot is another example of how this technology can keep you from wasting precious resources, leaving your human agents free to engage with more complicated scenarios.

4. Engaging in Black Hat Methods

Those eager to get a quick increase in traffic or to rank higher on Google may resort to unsafe marketing practices. If you make that mistake and engage in any type of cheating techniques, it may cost you a lot.

Avoid using any type of black hat methods, that is, dishonest and cheating practices, since they will most probably lead to penalties by Google. Instead of boosting the performance of your website by trying to trick search engines, opt for ethical methods.

Safe marketing strategies will require more work and patience. Still, they will also build your brand a good reputation and deliver better results in the long run, without any unpleasant consequences.

5. Settling for Paid Advertising Only

Pay-per-click marketing can indeed earn quick traffic and sales, but it is not the only digital marketing tactic that can generate revenue.

Also, it can get expensive, since it can take some time to see the long-term results.

If you use only paid advertisements, you may miss other more effective digital marketing strategies. Spending on paid advertising is recommended if your goal is to generate more visibility for your brand.

If the organic visits to your website are increasing with time, then it is best if you invest in other aspects like generating outstanding content and improving the design of the landing pages.

6. Not Promoting Your Website Efficiently

With more than 1.5 billion websites online, your target audience is not likely to stumble upon your site unless you do your best to promote it well. Without people coming to your website, no sales will be made.

Promoting your website will increase its visibility and result in reaching new customers.

To get more traffic, invest in SEO, SEM, and creating engaging and informative content. Another significant ranking factor besides exceptional content is backlinking. This tactic relies on earning links on reputable and trustworthy websites, as they practically vouch for relevance and credibility.

Implementing effective link building strategies can help rank your pages higher and ultimately bring you more traffic and conversions.

Turning to paid ads on search engines and social media is also a great way to promote your business.

7. Not Using Social Media Properly

Posting content on social media channels isn’t sufficient in helping your business convert more leads and gain profit. Again, it’s the engagement with the right people that makes all the difference.

Your social media marketing efforts need to be focused on your target audience. Otherwise, you will be wasting your time and money.

This means you need to communicate with your customers via platforms they use the most and develop high-quality content that will appeal to them.

Facebook recently stated that it would encourage meaningful interaction between people. In other words, there will be less “salesy” content and advertising on their users’ news feed. This means that your safest bet is to create valuable content that engages your audience and connects your brand with your followers.

Posts that educate, inspire, or entertain are more likely to get your customers to take a specific action. Responding to comments encourages engagement too.

Social media, content marketing, and SEO are great digital marketing strategies that can be as effective as paid advertisements if done properly. The mistakes that we discussed can hinder your growth significantly, so be careful.

Author Bio:

Michael Deane has been working in marketing for almost a decade and has worked with a huge range of clients, which has made him knowledgeable on many different subjects. He has recently rediscovered a passion for writing and hopes to make it a daily habit. You can read more of Michael’s work at Qeedle.

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How Technology Is Changing Business Communication for the Better

April 30, 2020 by Guest Author Leave a Comment

By Kayla Matthews

Communication is central to running any successful business. From customer service to employee performance reviews, nearly every aspect of business relies on clear communication. As with many other areas, technology is providing new and improved ways to communicate.

Technological innovations have always driven improvements in business communication. Just as the telephone and email revolutionized business communication in their times, modern technology is revolutionizing it again. Advancements like blockchains and artificial intelligence (AI) are changing how you interact with employees and customers.

1. Gathering Customer Data

Data collection and analysis are the heart and soul of modern business. With communication tools like chatbots, you can gather customer data from your communication with them. You can then use this data to tailor future interactions with them on an individual level.

More than 90% of customers prefer interacting with brands that offer personalized experiences. The best way to provide personalization is by logging customer history and preferences. With data analytic technology, every instance of communication is a chance to improve future customer interactions.

2. Protecting Privacy

In the digital age, keeping conversation private is a growing concern. But just as advanced technology presents new threats to privacy, it also provides ways to protect it. The desire for secure communication is one of the driving forces behind blockchain adoption.

Blockchains are encrypted, decentralized ledgers of information. Unlike traditional forms of communication, blockchains aren’t subject to the prying eyes of governments or telecommunication companies. You can send data to a colleague on a blockchain to keep it private and unchangeable.

3. Expanding Remote Communication

Modern technology makes remote work and communication a more viable option. Services like video conferencing expand the possibilities of long-distance communication. Now you can meet coworkers or clients “face-to-face” without even being in the same room.

Today’s remote communication technology also provides increased flexibility. With platforms like Google Meets and Zoom, you can participate in group meetings from home with minimal setup. Communication, both with employees and customers, is more convenient and reliable than ever, even across long distances.

4. Automation Through AI

Artificial intelligence (AI) is one of the most promising technologies in the modern business world. It has applications in everything from logistics to organization, including communication. When businesses face staff shortages, they can use AI to take over customer relations.

AI-powered chatbots can hold natural and informative conversations, providing competitive customer service at any time. On top of being available around the clock, these systems can access customer data while speaking to customers. That way, they can provide relevant, personalized answers in real-time.

5. Increasing Collaboration

Business communication doesn’t just have to be clear and reliable, but it has to be thorough. Collaborative technologies like cloud computing enable you and your coworkers to communicate and collaborate across any distance. You can share documents through email, but on the cloud, you and your coworkers can edit them in the same place.

Other communication tools, like social media, allow you to collaborate more with consumers. You can interact with users on social sites to create or refine customer-centric experiences. By involving your consumer base, you improve your company image and offer more desirable products or experiences.

Improving Your Communication

In today’s day and age, flexible, thorough communication is a must. Novel communication technology allows companies to adjust to unforeseen circumstances like the coronavirus outbreak. Thanks to these technologies, businesses can shift to remote work with relative ease.

To stay competitive in today’s business world, you need to communicate better. To communicate better, you need to take advantage of the technology available to you. Implementing new services for both internal communication and customer service will help you stay ahead of the competition.

Variation is key. If you rely too heavily on one form of communication, you’ll be in trouble if it fails or becomes outdated. But with varied and forward-thinking technology adoption, you can improve and secure your communication all around.

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What All Businesses Should Know About 2020 Taxes

April 9, 2020 by Guest Author Leave a Comment

By Kayla Matthews

Knowing what’s new with tax specifics this year helps you feel well-equipped when filing your returns. Here are some crucial things to keep in mind as you prepare your 2020 taxes.

The Federal Tax Deadline Is Now July 15 for U.S. Filers

Perhaps the most important thing to know for planning purposes is that you have a little more time to get your returns filed. The Internal Revenue Service (IRS) announced that it moved the 2020 filing deadline forward three months. Due to the COVID-19 pandemic, It’s now July 15, rather than April 15. You do not need to request an extension to avail of the extra time.

Moreover, this new deadline also applies to estimated taxes that some self-employed professionals would have paid on April 15, 2020. Bear in mind, though, that you still need to get the second quarter’s payment in by June 15, 2020. States have taken a variety of different approaches with their tax deadlines. Some opted not to change them, while others permitted extensions. Check for the details associated with your state to avoid late payment penalties.

You May Qualify for COVID-19-Related Assistance

The coronavirus government stimulus package is a much-discussed topic these days. It will see a large percentage of taxpayers getting $1,200 deposited into their bank accounts. There is also an assortment of other forms of assistance that may apply to you. The IRS set up a dedicated page to inform people of what’s available and how to apply for it.

Employers should keep in mind that their businesses may be eligible for the Employee Retention Credit. It provides a tax credit for up to 50% of the qualifying wages paid to employees. Moreover, there are refundable tax credits given to small and medium-sized businesses to cover the costs of paid sick and family leave associated with COVID-19.

The IRS spells out the details of each assistance program on its website. Instead of assuming you qualify for something, take the time to read the information to check.

Deducting Expenses Is Not Always Straightforward

One of the most time-intensive tax tasks for many people involves deducting their expenses. That’s because tight parameters dictate what you can or cannot deduct. The lack of clarity may also exist regarding whether something is a tax or not.

One recent instance involved the Rhode Island Department of Transportation tried to collect toll fees exclusively from commercial trucks to fund roadways improvements. A court ruled that the word “tax,” as found in the Tax Injunction Act (TIA), does not include tolls.

However, the IRS has standard mileage rates you can deduct for business-related driving. In that case, the permitted deductions include tolls, as well as parking fees. The standard rate for business travel is 57.5 cents per mile this year — down from the 58 cents allowed in 2019.

You may also wonder if it’s possible to deduct expenses associated with working from home due to the coronavirus pandemic. The surprising answer is that you cannot deduct the item as an employee, but your company can.

Some companies pass the benefits onto workers. Section 139 of the federal tax code allows tax-free reimbursements of “reasonable expenses” to employees due to disasters, including the COVID-19 pandemic.

Sustainability Credits Remain in Effect

The tax incentives for energy-efficient commercial and residential buildings will stay in place through December 31, 2020. Additionally, if you buy qualifying energy-efficiency equipment (such as solar water heaters and geothermal heat pumps) for your home, the credits for those are available through December 31, 2021. However, the percent of the cost eligible for a tax break takes a step-down approach.

If you begin using the equipment after 12/31/2019 and before 1/1/2021, the tax credit is 26%. However, it drops by four percentage points if you put the purchases in service from 12/31/2020 to 1/1/2022. The credits apply to existing and newly constructed homes that you own. Rental properties do not qualify.

Some People Can Dip Into Their Retirement Savings Without the Usual Penalty

Another recent development associated with COVID-19 tax relief allows qualifying parties to access their retirement savings early without the 10% penalty usually incurred. Affected individuals, such as those diagnosed with COVID-19 or caring for a spouse who has it, can withdraw up to $100,000 in savings under that arrangement.

Also, if you have a 401(k), the new stipulation allows six months of taking loans from an account equaling $100,000 or 100% of the account balance, whichever is lower.

Numerous New Tax Developments

This overview shows why it’s crucial to learn about this year’s tax changes before starting to file. Getting informed is a practical way to ensure you know about all the breaks and incentives applying to you or your enterprise.

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