The "Fiscal Cliff" And What it Means For Our Clients

With less than two weeks before the New Year, the White House and House Republicans are still in negotiations on how to avoid the “fiscal cliff” that is set to begin January 1, 2013. The “fiscal cliff” has been a top news story since before the election but what does it mean for your business?

The delays in negotiations pose potential problems for all taxpayers, especially businesses that rely on and create payroll software. The dozens of expected exemptions, deductions, exclusions and changes to the various payroll tax codes/rates make it nearly impossible to begin preparing for the 2013 payroll tax year. Many payroll software companies are gearing up to make quick changes to their payroll software modules as their users grow anxious that there won’t be enough time to implement all of the changes prior to the first 2013 check dates.  Cachet and PTM are taking steps to ensure that our clients will have the smoothest transition into the New Year as possible.

In the past, PTM has dealt with servicing clients whose payroll software companies did not have adequate time to update their systems, specifically with items effecting first quarter payrolls, much like the expected changes to prevent our country from going over the “fiscal cliff.”  PTM is prepared to implement a temporary “workaround” to process data accurately as we receive it from our payroll software vendor partners up to and after the eleventh hour; while Cachet is poised to handle any changes to client processing volume that may occur as a result of the changes. We will be doing as much as we can to help our clients and payroll software vendor partners manage the pending changes. 

With the current fiscal uncertainty and pending political negotiations, rest assured that Cachet and PTM will be up-to-date and serve our clients in the best way possible as the December 31^st deadline approaches.

For Year End updates and other industry information connect with us:

Thank You To Our Clients

As the holiday season approaches, Cachet Banq, Inc.  would like to take this opportunity to thank all of our clients and partners; past, present and future. It is because of your continued support that we move forward with the goal of providing you with quality ACH and payroll processing services in our ever growing market. We would not be a successful company without your business and we are excited to continue to work harder to fulfill your ancillary needs in the coming year.  So from our family to yours, we hope you have a wonderful Thanksgiving!

Warm regards,

The Cachet and PTM staff

P.S. Please enjoy the Thanksgiving fun facts that we found below!

Thanksgiving Fun Facts*

1. The first ever TV dinner was made in 1953 by Swanson when they had about 260 tons of leftover turkey to get rid of.
2. The Detroit Lions always play on Thanksgiving Day. This tradition started in 1934. The only exception was when the team went to serve in WWII.
3. Sarah Josepha Hale, a magazine editor, started a campaign in 1827 to make Thanksgiving a national day of thanks and prayer. In 1863 it was observed as such.
4. In an effort to boost retail sales during the Great Depression, Franklin Roosevelt tried to make Thanksgiving a week earlier. His efforts failed and after two years and a lot of name calling, Congress adopted a resolution to make Thanksgiving the fourth Thursday of November.
5. Benjamin Franklin tried to make the turkey the national bird.
6. A spooked turkey can run at speeds of up to 20 miles per hour. They can also burst into flight approaching speeds between 50-55 mph in a matter of seconds. 
7. An estimated 20% of cranberries eaten throughout the year are consumed on Thanksgiving.
8. Thanksgiving was declared a National Holiday by Congress 1941.
9. Fossil evidence shows that turkeys roamed the Americas 10 million years ago.
10. The North American holiday season (generally the Christmas shopping season in the U.S.) traditionally begins when Thanksgiving ends, on "Black Friday" (the day after Thanksgiving); this tradition has held forth since at least the 1930s.

*Thanksgiving Fun Facts were found on TIME, Reluctant Gourmet, and Celebrity Café.

IRS/Tax Agency Communication

Communicating with the Internal Service Revenue (IRS) seems impossible, given the fact that they are responsible for tax collection from all individuals and businesses in the United States.  When it comes to communicating with the IRS, it is important that you go through the proper channels to receive the most relevant information possible.

Businesses that outsource their payroll tax processing to a full-service provider, don’t have to worry because their payroll tax processor holds Power of Attorney (POA) and can deal directly with the IRS on their behalf.  However, businesses with a more flexible payroll service or those who process their payroll taxes in-house hold the responsibility to communicate with the IRS should an error occur with their taxes.

Here are a few tips to make communicating with IRS a more painless task:

• Have your Information Ready. Make sure you have all of the pertinent information (POA, Inquiry notice, FEIN) before you contact the IRS, they will make you call back if you can't locate the information, which no one wants. 
• Don't Delay. When it comes to handling matters with the IRS, respond quickly.  The sooner you address an inquiry the less you will have to pay in penalties and interest.
• Clear your Calendar. Since the IRS deals with all US businesses and citizens it can take up to or over an hour to reach the appropriate party.  Having a stress ball handy may not be a bad idea…
• The Later the Better. PTM Compliance Specialist, Vivian Leidelmeijer, one of PTM’s main correspondents with the IRS, shared an insight she has learned over her years of communicating with the IRS.  She stated that if you call the IRS later in the afternoon, there is generally a shorter waiting time and the employees are more eager to help you quickly.  This may be due to the fact that they want to get home by the end of the day, but either way, it’s effective!

If you have any further questions regarding IRS communication, year-end taxes, etc., Cachet and PTM would be happy to answer any questions.  Post questions on Facebook or Twitter, or email us at info@cachetbanq.com.  There are limitless ways to have your questions answered, and Cachet Banq, Inc. and Payroll Tax Management are here to help!

B2B Networking: At Conferences, Part 2

Written by: Brooke Pettys, Marketing Specialist

To continue with this week's topic of networking, these tips discuss steps you can take after a conference has ended and ways to ensure a positive follow up response.  Additionally, the Cachet and PTM Regional Managers share some networking tips they have learned over the years that have proven to be effective for them. 

After a conference, the follow up is one of the most important factors when trying to generate new business.  Regional Manager, David Taub, says it’s best to wait 2-3 business days after a conference to follow up with any prospects you may have met.  This is because everyone, including you, is playing catch-up on the days they missed and therefore cannot devote additional time to create new professional relationships right away.  To make sure that you still stick out in your prospect’s mind days after a conference, always write down one personal or professional topic the two of you spoke about on their business card that you can mention again when you call them.  This brings up another important tip, which is making sure that you call first.  You can and should always follow up with an email, but calling a prospect gives you an advantage over the people who solely email and may never get a response back.  Additionally, try and connect with prospects on LinkedIn, or see if you have any shared connections or group between the two of you.  This can bring up another topic to discuss if you feel that your personal anecdote isn’t enough.

Tips learned from conferences:

Cachet and PTM Regional Managers shared great networking tips to follow/not follow that they have seen throughout the years at conferences.  

Scott Johnson stated that “you never want to be the person in the room just collecting business cards trying to meet everybody.  Everyone is trying to create relationships that can move their business forward, and people recognize when someone is not being sincere and are only interested in themselves and their company”.  A great networker is someone that can establish genuine connections and build relationships without having to constantly push their product.  It is better to establish five valuable and genuine relationships than trade 20 business cards without creating engaging in genuine conversation with the people you met.  

David Taub recommended that if you attend a conference alone, which is very likely, it is important that you have no qualms about speaking to competitors, alliance partners, and prospects.  This may take you out of your comfort zone, but keep in mind that most people attending conferences are either alone or with one or two other employees, so they are most likely feeling the same way as you.  

Ken Spitzer discovered that the best networking opportunities often occur at the optional events.  Dinners, golf games, fishing activities, etc. are a great time to get to know people on a personal level and build the relationship from there.  People will most likely remember the conversation they had with you about your shared love of rock climbing a lot more easily than the 5 minute pitch you gave about your company through the midst of the chaos during an event.

Connect with us for up-to-date expert information about the

Payroll industry and our company's products/services.

B2B Networking: At Conferences, Part 1

Written by: Brooke Pettys, Marketing Specialist

In a Business-to-Business industry, networking plays a very important role in obtaining clients, building meaningful professional relationships, and growing business for your company. A majority of networking is done at conferences, but actively networking in various other ways throughout the year is also an effective tool for increasing business. To provide better insight, Cachet and PTM Regional Managers share networking tips they have used throughout their career that have proven to be successful and effective.

Before a conference, it is important to research the conference as much as possible. Who is hosting the event? What is the main focus of each session and the overall conference? Is an attendee list provided? Are you familiar with the sponsor companies? Which companies are competitors, alliance partners, prospects, etc.? These are some of the questions you should be able to answer before attending a conference. Regional Manager, Scott Johnson, finds that it is also helpful to look up attending companies on LinkedIn and the employees representing them so that he knows exactly who he wants to talk to and how to approach them before he arrives at the conference. "Putting a face to a name is key," he says. 

Reaching out to as many attendees as possible before the conference can allow you to make a connection with prospects and set up meetings with vendors. By doing this, you already starting the networking process before you arrive at the conference. Regional Manager, Ken Spitzer, finds that when he actively networks before a conference people are then searching for him and his company, rather than him constantly trying to find and meet people on his own.   

During the conference, presentation is everything. Although the SWAG you pass out may not seem as important, it is something that draws attendees in. This, partnered with a professional yet friendly demeanor, can make you an instant success at the conference. Scott stated that he tries to engage in as many conversations he can while still keeping each one genuine. David Taub, Regional Manager, tries to make sure that both he and the company stick in someone’s mind rather than become another portfolio in a company’s pile at the end of the conference. Scott Johnson believes that swift initiative keeps you ahead of the game at conferences. Sending a quick email or LinkedIn invite to the people you personally met each conference day creates an instant connection and in turn makes you more memorable down the road.

Check back in tomorrow to see tips for follow-ups after a conference and networking that can be done throughout the normal work week.

Connect with us for up-to-date expert information about the 

Payroll industry and our company products/services.

 

Risk Management for Business: Tips 9 and 10

To end the Risk Management Tips for the week, the focus is on transaction times and deadlines for both collections and deposits, and procedures set in place for competitive services offered. 

Tip 9: Expand time between collection and deposit transactions. You should consider the benefits your company would have if you processed payroll on Monday for a Friday check date. You will collect from the client on Tuesday and by Thursday you’ll find out if there is an NSF.

Tip 10: Establish procedures for next-day and same-day payrolls. To stay competitive, you need to be in a position to offer next-day and same-day processing. Consider requiring these clients to wire funds to you. If your ACH processor has the capability, DrawDown FedWire (reverse wire) may also be a good choice.

Additionally, make sure you are reconciling your accounts, especially your tax impound account, down to the FEIN (client) level, on a daily basis.

 
*Bonus Tip: Consider contracting a risk management expert. You can limit your risk by contracting with a trusted partner, allowing you to focus on your core product -- payroll. A service like PTM's FlexTax, gives you the control you desire in an in-house tax processing system, but with all the checks and balances you get with traditional payroll tax outsourcing solutions.

Whichever way you go, make sure you establish risk management policies, and that you review and revise them no less frequently than annually. Make it a point to read articles on industry trends and adjust your business policies as needed.

Connect with us for up-to-date expert information about the 

Payroll industry and our company products/services.

     

Risk Management for Business: Tips 6 - 8

To continue with our Risk Management topic for the week, these tips discuss safety steps you can take before accepting a client as well as procedures and the capacity of your tax software.

Tip 6: Know Your Client. You should consider steps to ensure you do not take on any "clients" that are fraudulent companies, "payroll jumpers", or companies that are financially unstable. Consider running credit checks on new clients, visiting their offices, calling to obtain references from other vendors with which they process, calling their former payroll service bureau, etc.  And don’t forget to do background checks on corporate officers.

Tip 7: Establish procedures for client NSFs. Your procedures should help ensure that you recover the funds as soon as possible. The procedures should include escalating NSF fees, procedures for holding or reversing payroll tax deposits, procedures on when to terminate a client for NSF activity, etc. Follow your procedures to the letter and don't fall into the "he's good for it" trap. Do not let your clients put your business at risk by soliciting unsecured loans!

Tip 8: Consider the capabilities of your tax compliance software. You may be able to offset risk by holding payroll tax deposits in the event of a client NSF. It is important to know the capabilities of your system in order to set your risk management policies. Does your system automatically track $100k payrolls? Does your system allow you to place clients on hold for NSFs? Does your system automatically hold payroll tax deposits if funds have not been received?

Once you have taken into consideration all factors that will contribute to your potential risk and your ability to control it, you need to establish written guidelines that are published, known and practiced by all employees.

Check back every day this week for more helpful tips regarding Risk Management that could potentially save your company a lot of time, money, and stress.

Connect with us for up-to-date expert information about the

Payroll industry and our company's products/services.