The World of Computer Software/World_Of_Computer_Software-02-385-Vol-1of3.iso/s/sbadv64a.zip/F134.SBE

Text File | 1992-12-01 | 26KB | 559 lines

            ┌───────────────────────────────────────┐
            │ UPDATE INFORMATION--CHANGES IN RECENT │
            │ QUARTERLY RELEASES OF THIS PROGRAM:   │
            └───────────────────────────────────────┘

                       FEDERAL LAW CHANGES:
                       ────────────────────

  .  UPDATED FOR 1993 FEDERAL TAX RATES.  Including income,
     FICA, Self-employment, and other federal taxes. [92/4]

  .  INCREASE IN CORPORATE ESTIMATED TAX REQUIRED PAYMENTS.
     Updated to reflect January, 1992 amendments (and FUR-
     THER amendments in February and JULY) to the corporate
     estimated tax rules, which now require an increase in
     the percentage of current year estimated tax, in gen-
     eral, that must be paid in by corporations to avoid
     penalty, for years 1992-1996.  Prior to 1992, corpor-
     ations were generally required to pay in 90% of the
     current year's tax as estimated tax payments.  How-
     ever, during the next few years (1992-1996), the per-
     centage to be is paid in as estimated tax increases
     as follows:

         . 1992        -- 93%  (97% for certain "large"
                               corporations, for tax years
                               beginning after June 30,
                               1992)

         . 1993-1996   -- 95%  (97% for certain large cor-
                               porations for tax years
                               beginning before 1997, 91%
                               thereafter)

     (The initial revisions, which you may have heard
     about, would have phased-in the increase, to 94% in
     1993-94, but Congress changed that law, to the
     above schedule, within a couple of months of its
     passage, then changed it again in July.  Things
     change faster and faster....) [92/3]

  .  AMERICANS WITH DISABILITIES ACT.  A new section has
     been added regarding the sweeping new requirements of
     this new legislation, passed in 1990, which is going
     into effect, in stages, in 1992 through 1994. [92/4]

  .  NEW CIVIL RIGHTS ACT.  All about the "hiring quotas"
     controversy in the new Civil Rights Act of 1991, and
     what it means to you.  While we are still trying to
     figure out exactly what this complex new legislation
     really means (as are a lot of other people, including
     battalions of lawyers), once the smoke clears a bit
     on some of the hazier parts of the new law, we have
     already included our own overview and analysis, plus
     advice to employers on what you may need to do to com-
     ply with the much tougher new anti-discrimination
     rules, where they apply to your firm.  [92/3]

  .  SEXUAL HARASSMENT IN THE WORKPLACE.  If, like most
     Americans, you were glued to the small, glowing tube
     in your living room for several days back in October,
     1991, watching the Clarence Thomas-Anita Hill soap
     opera unfold, you are probably already aware that sex-
     ual harassment has become an explosive legal issue in
     the workplace today.  This update of this program in-
     cludes detailed advice on how to prevent such harass-
     ment at your firm, as well as how to protect yourself
     from liability for such acts committed by renegade
     employees, if any such harassment does occur at your
     place of business. [92/3]

  .  EQUAL CREDIT OPPORTUNITY ACT.  Do you extend consumer
     credit to your customers?  Yes?  Do you enjoy being
     sued by them?  No?  Then you may find the information
     we have added to the program on the Equal Credit
     Opportunity Act to be very interesting reading. [92/2]

  .  PATENTS AND COPYRIGHTS.  Information has been added
     to the program on patents and copyrights, and on pend-
     ing legislation that may soon radically change the
     patent law rules, with potentially serious consequen-
     ces for small inventors who don't hear about the
     change soon enough to act on it.  [92/3]


                        STATE LAW CHANGES:
                        ──────────────────

  .  STATE USE TAX COLLECTION BY MAIL ORDER RETAILERS NOT
     REQUIRED.  The U.S. Supreme Court held, on May 26,
     1992, in the case of Quill Corp. v. North Dakota,
     that, under the U.S. Constitution, a state may not
     force out-of-state mail order retailers to collect
     use tax on sales to residents of the state, where
     the company had no presence in the state.  Thus, it
     appears that many of the new "broad grasp" mail order
     company use tax law provisions, which have been adop-
     ted in some 34 states in recent years, may be invalid
     and no longer enforceable.  While this is good news
     for all mail order retailers, the bad news is that
     the Court also indicated in its decision that Congress
     could, if it chooses to do so, constitutionally enact
     legislation that would permit the states to require
     use tax collection on mail order and similar sales by
     out-of-state retailers.  [92/3]

  .  SALES TAX COVERAGE EXPANDED.  Greatly expanded, more
     detailed coverage of state sales tax laws, including
     registration, local taxes, taxable categories, and
     major exemptions from sales tax in each state.

  .  ARKANSAS MINIMUM WAGE INCREASE.  The program now re-
     flects the increase in the Arkansas minimum wage from
     $3.65 an hour to $4.00 on July 1, 1992.  [92/3]

  .  CALIFORNIA LOCAL SALES TAXES. Recent legislation will
     allow California counties to impose as much as a 1.5%
     local sales tax, starting in 1993, versus the current
     limit of 1%.  Some counties, like San Francisco, have
     already jumped the gun in 1992, which may or may not
     be unconstitutional.  [92/3]

  .  CALIFORNIA LOCAL BUSINESS LICENSE TAXES.  More infor-
     mation has been added on the gross receipts taxes
     that are imposed by several major California cities
     and counties, and how to minimize your local license
     tax burden. [92/3]

  .  CALIFORNIA.  The State Board of Equalization has
     dropped the requirement that most new businesses reg-
     istering for the sales tax post a deposit (except for
     retailers who have established a poor record of pay-
     ing sales tax to the state).  In the past, most new
     businesses in California were required to post a bond
     or deposit totalling 3 times their estimated monthly
     sales tax collection (up to $10,000).  Dropping this
     requirement is intended to lower one barrier to the
     creation of new small businesses.  [92/2]

  .  CALIFORNIA.  Family leave legislation, the "Family
     Rights Act of 1991" is now discussed in this update.
     [92/3]

  .  CALIFORNIA.  Effective in 1994, most small employers
     in California (25 employees or less) will be eligible
     for a state income or franchise tax credit of up to
     the greater of $25 a month per employee or 25% of the
     amount paid for employee health care coverage.  (This
     credit was to have gone into effect in 1992, but was
     delayed until 1993, and now has been delayed for yet
     another year by the California Legislature.)  [92/4]

  .  CALIFORNIA.  Updated to reflect 1992 indexing of
     California tax brackets for personal income tax,
     which were released in September, 1992 by the
     California Franchise Tax Board.  [92/4]

  .  CALIFORNIA'S TOUGHER NEW ESTIMATED TAX PAYMENT RULES.
     Covers new estimated tax rules, effective 1-1-1993,
     that will limit ability of individual taxpayers to
     avoid underpayment penalty by merely making estimated
     tax payments equal to 100% of their prior year's tax
     liability, for certain high-income taxpayers whose
     income increases by more than $40,000 from the prior
     year.  Also updates increase in amount of estimated
     franchise tax for corporations, from 90% to 95%, that
     goes into effect in 1993. [92/4]

  .  CALIFORNIA SDI RATE INCREASED FOR 1993.  Updated for
     increase in State Disability Insurance (tax) rate
     calendar year 1993, from 1.25% to 1.30%. [92/4]

  .  CONNECTICUT CORPORATE INCOME TAX.  Connecticut is
     phasing out the 20% corporate income tax surtax:
     It is reduced to 10% for income years beginning in
     1992, and is repealed for years beginning after
     12-31-92. [92/2]

  .  CONNECTICUT SALES TAX.  The Connecticut sales tax was
     reduced from 8% to 6%, effective October 1, 1991.  At
     the same time, motor fuel tax rates were increased
     from 23 cents to 25 cents a gallon as of 9-1-91, 26
     cents on 1-1-92, 28 cents on 1-1-93, 29 cents on
     7-1-93, 30 cents on 1-1-94, 31 cents on 7-1-94,
     32 cents on 1-1-95, 33 cents on 7-1-95, and to 34
     cents a gallon on 1-1-96. [92/2]

  .  CONNECTICUT MINIMUM WAGE INCREASE.  Updated to re-
     flect increase in the state minimum wage to $4.27 an
     hour, just slightly higher than the federal minimum
     wage. [92/2]

  .  DIST. OF COLUMBIA UNINCORPORATED BUSINESS TAX.  Infor-
     mation has been added to this release regarding the
     Washington, D.C. Unincorporated Business Franchise
     Tax on partnerships and sole proprietorships.  [92/2]

  .  DISTRICT OF COLUMBIA MINIMUM WAGE. Revised to reflect
     increase in DC minimum wage to $7.25 an hour on
     12-1-91, and emergency legislation which reduced the
     minimum wage temporarily to $5.25, until October 8,
     1992. [92/2]

  .  FLORIDA SALES TAX EXTENDED.  Revised to reflect expan-
     sion of the Florida sales tax to apply to certain bur-
     glary and other protection services, plus nonresiden-
     tial cleaning and pest control services.  [92/2]

  .  HAWAII AMENDS AND BROADENS ANTI-DISCRIMINATION LAWS.
     Hawaii has become the third state (after Massachus-
     etts and Wisconsin) to enact a "gay rights" law, mak-
     ing it illegal for employers to discriminate on the
     basis of sexual orientation. [92/2]

  .  HAWAII UNEMPLOYMENT TAX CHANGES.  For calendar year
     1992 and in subsequent years, the "new employer"
     state unemployment tax rate (1.70% in 1992) will be
     the same as the contribution rate assigned to em-
     ployers with a .0000 reserve ratio.  (The rate was
     3.1% for new employers in 1991.)  The wage base for
     Hawaii unemployment tax has been increased to $22,700
     in 1992 (from $7,000 in 1991), however, so that the
     maximum tax to a given employee has increased from
     $217 in 1991 to as much as $385.90 in 1992. [92/2]

  .  HAWAII GENERAL EXCISE TAX EXEMPTION FOR HOTEL OPER-
     ATORS.  Recent legislation passed in 1991 now allows
     Hawaii hotel operators to reduce taxable gross re-
     ceipts by the amount disbursed to hotel employees for
     salary, wages, and benefits.  [92/2]

  .  HAWAII MINIMUM WAGE INCREASE.  As of April 1, 1992,
     the Hawaii minimum wage increased from $3.85 an hour
     to $4.75 an hour. [92/2]

  .  HAWAII EXEMPTION FOR "AFFORDABLE HOUSING."  New legis-
     lation exempts certain planning, design, etc. services
     in connection with construction and sale of "afford-
     able housing" between July 1, 1992 and December 31,
     1994 from the state General Excise Tax. [92/3]

  .  IOWA SALES TAX INCREASE.  The sales tax rate in Iowa
     increased from 4% to 5% on July 1, 1992, despite an
     earlier attempt by the Governor to veto an increase
     that would have gone into effect on June 1st. [92/3]

  .  KANSAS INCREASES SALES TAX, CHANGES INCOME TAX RATES.
     The Kansas Legislature has adopted new tax legisla-
     tion that increased the state sales tax rate from
     4.25% to 4.9%, effective as of June 1, 1992.  The
     new law also modifies the income tax law for both in-
     dividuals and corporations.  The tax rate on corpora-
     tions is reduced from 4.5% to 4% for years beginning
     after 1991, but the corporate income surtax is in-
     creased to 3.35% (formerly 2.25%) on Kansas taxable
     income in excess of $50,000 (formerly $25,000).

     Under the new individual income tax law, starting in
     1992, the maximum tax bracket for joint filers is set
     at 6.45% on income over $60,000, and at 7.75% on oth-
     er filers on income over $30,000, and taxpayers will
     no longer be allowed to elect to take a deduction for
     federal income taxes paid on their Kansas income tax
     returns. [92/2]

  .  MAINE SALES TAX.  Updated to reflect drop in sales
     tax rate from 6% to 5%, scheduled to go into effect
     7-1-93. [92/3]

  .  MARYLAND PERSONAL INCOME TAX INCREASES. For tax years
     beginning in 1992 or later, the maximum state income
     tax bracket for individuals has been increased from
     5% to 6%, on income of more than $150,000 (joint re-
     turn or head of household). [92/2]

  .  MICHIGAN SINGLE BUSINESS TAX.  Exemption amounts for
     this tax have been updated for 1992.  Also, new legis-
     lation has dramatically expanded the exemption for
     small businesses, which will now be $100,000, which
     should eliminate this tax altogether for many small
     firms in the future. [92/3]

   . MICHIGAN SINGLE BUSINESS TAX SMALL BUSINESS TAX CREDIT.
     The small business tax credit allowed to certain smal-
     ler businesses under the Single Business Tax has been
     amended, and now applies to firms with up to $10 mil-
     lion in annual gross receipts (formerly $7.5 million).
     [92/3]

  .  MISSOURI USE TAX INCREASE.  As of July 1, 1992,
     Missouri's use tax rate increased from 4.225% to
     5.725%.  (The sales tax rate remains at 4.225%).
     This unusual provision makes Missouri the only
     state with a use tax that is higher than its sales
     tax rate, and seems to be designed to intimidate
     out-of-state sellers into registering and paying
     the sales tax. [92/2]

  .  MONTANA MINIMUM WAGE INCREASE.  Updated to reflect
     increase in minimum wage from $4.00 to the federal
     rate of $4.25 an hour. [92/3]

  .  MONTANA SALES TAX PROPOSED.  The Republican candidate
     for Governor of Montana has proposed a fiscal plan he
     would present to the state's voters, if elected, to
     enact a sales tax in Montana.  (There is no sales tax
     in Montana, as of this time, October 1, 1992.) [92/3]

  .  MONTANA TAX BRACKETS ADJUSTED FOR INFLATION.  Updated
     to reflect 1992 inflation adjustment to individual
     income tax brackets, plus the 2.3% income tax surtax
     for 1992. [92/3]

  .  NEVADA BUSINESS PRIVILEGE TAX.  Nevada has enacted a
     new Business Privilege Tax, effective July 1, 1991.
     The new tax is based on the average number of employ-
     ees a company has, generally at the rate of about
     $25 or $30 tax per employee per quarter (plus $17.50
     for each employee over 999).  An independent contrac-
     tor is not counted as an employee for purposes of the
     tax.  A person may not conduct a business in Nevada
     without first obtaining a business from the state
     Department of Taxation, and paying a $25 license fee.
     [92/2]

  .  NEW MEXICO WORKERS' COMPENSATION LAW CHANGES.  New
     Mexico law provides, generally, an exemption from the
     Workers' Compensation Law for employers with fewer
     than 3 employees.  However, as of January 1, 1992, no
     such exemption is allowed for businesses subject to
     the Construction Industries Licensing Act.  Note that
     in New Mexico, every employer subject to the Workers'
     Compensation Act who has an annual workers' compensa-
     tion insurance premium of $5000 or more (or who self-
     insures) is now subject to an annual safety inspec-
     tion. [92/2]

  .  NORTH CAROLINA MINIMUM WAGE INCREASE.  Updated to
     reflect scheduled increase from $3.35 to $3.80 on
     January 1, 1992, and a further increase to $4.25 an
     hour on January 1, 1993. [92/3]

  .  PENNSYLVANIA INCOME TAX INCREASES ENACTED:

     (a) The Pennsylvania personal income tax rate is
         increased from 2.1% to effective rate of 2.95%,
         dropping to 2.8% after 1992.

     (b) Pennsylvania has also increased the corporate
         net income tax rate from 8.5% to 12.25%, for
         tax years beginning in 1991 and thereafter.
         In addition, the minimum capital stock and
         franchise tax on corporations is raised to $300.
         [92/2]

  .  RHODE ISLAND INCREASES INCOME TAX ON HIGHER-INCOME
     TAXPAYERS.  The state income tax, equal to 27.5% of
     federal income tax liability, is "temporarily" in-
     creased, on federal tax liability in excess of
     $15,000, to 29.75% in 1992 and to 32% in 1993.  Also,
     the 11% business corporation surtax on income, sched-
     uled to expire in 1993, has been extended to January
     1, 1997.  [92/2]

  .  SOUTH CAROLINA TAX BRACKET INDEXING FOR 1993. Updated
     to reflect increase in the income level at which the
     top state personal income tax bracket begins, in-
     creased from $10,600 in 1992 to $10,800 in 1993.
     [92/4]

  .  SOUTH DAKOTA REJECT INCOME TAX.  South Dakota voters
     went to the polls on November 3, 1992 and voted not to
     adopt an initiative petition that proposed to institute
     a state income tax on individuals and corporations.
     The maximum proposed state income tax rate for both
     corporations and individuals in South Dakota would have
     been 6% if the measure had been approved by the voters.
      [92/4]

  .  TENNESSEE ENACTS TAX ON SERVICES.  Effective July 1,
     1992 through March 31, 1994, Tennessee has repealed
     its 6% sales tax on most services, but has replaced
     it with a new 6.75% tax on services of various spec-
     ified kinds. [92/3]

  .  VIRGINIA MINIMUM WAGE INCREASE.  Updated to reflect
     increase in Virginia minimum wage from $2.65 to $3.65
     an hour, increasing to federal rate on 7-1-92. [92/3]

  .  WEST VIRGINIA MINIMUM WAGE INCREASE.  Updated to re-
     flect increase in state minimum wage from $3.35 to
     $3.80, and a further increase, in April, 1992, to
     $4.25 an hour. [92/3]

  .  WEST VIRGINIA CORPORATE INCOME TAX.  Updated to re-
     flect drop in tax rate from 9.15% to 9% after June
     30, 1992. [92/3]



   OTHER CHANGES AND ADDITIONS IN RECENT QUARTERLY RELEASES:
   ────────────────────────────────────────────────────────

  .  FLEX PLANS.  We have added a whole new segment on
     "flexible spending plans," or cafeteria plans, as
     they are sometimes called, which are becoming ex-
     tremely popular alternatives to traditional modes
     of providing tax-favored fringe benefits to employ-
     ees.  This is a very exciting new area, as it allows
     employees who have young children, for example, to
     select dependent care reimbursement, while other
     employees with differing needs might instead select
     other tax-free benefits.  (Employers say that their
     workers take to these new flex plans like bulimics
     in a bake shop.) [92/3]

  .  FRINGE BENEFITS.  An in-depth coverage of various
     employee fringe benefit plans your company can offer,
     in addition to the basic health, life insurance and
     disability plans covered in the current edition.
     How to put the golden handcuffs on those employees
     you want to keep, and how to give the sleeves of the
     vest to the ones who don't perform up to what you
     expected.  Everything from stock option plans, SARs,
     and phantom stock, to dependent care, educational
     benefit and group legal services plans and employee
     purchase discounts are now covered, in easy-to-
     understand language that gives you crucial the in-
     formation you need, as a business owner, to decide
     if such plans warrant consideration by your company.
     [92/3]

  .  PROTECTING YOUR ASSets. A new segment has been added,
     giving you a wide range of advice on ways to protect
     your financial rear end when you go into business, so
     that you will be less likely to wind up on a street
     corner selling apples, should your business venture
     fail.  Covers everything from setting up pension
     plans to opening Swiss bank accounts. [92/3]

  .  DEVELOPING TRENDS.  We have added a lengthy new seg-
     ment, concentrating on changing economic and business
     trends in the marketplace, as well as developing
     areas of business law and pending tax and other law
     changes you need to be aware of if you are in busi-
     ness.  Covers areas ranging from VDT terminals
     (health problems that may result from their use) to
     "wrongful termination" of employees to new environ-
     mental regulations to economic trends and pending
     national health insurance proposals.  (Access this
     info by selecting the "ECONOMIC AND BUSINESS TRENDS"
     item from the index, using the "INDX" selection on
     the Main Menu.) [92/2]

  .  TELEPHONE HOTLINES. Updated various telephone numbers
     of government agencies, many of which have changed or
     been disconnected in recent months.  Also added
     Justice Department information line number for in-
     formation on the Americans with Disabilities Act.
     [92/3]

  .  THIS UPDATE FILE has been added, a useful feature for
     users which we will continue to provide with each new
     quarterly update in the future.

  .  BUILT-IN ORDER FORM.  In addition, we have built in a
     feature that now allows you to print out the order
     form to send to us (with $$ enclosed), if you want to
     order an update or program upgrade, or the companion
     book that we sell here and in bookstores, STARTING &
     OPERATING A BUSINESS IN @STATE.

─────────────────────────────────────────────────────────────
             NOTE:   Things change....Rapidly.
─────────────────────────────────────────────────────────────
The above are changes made in  the last 4 quarterly updates,
not including earlier revisions.  Thus,  if you have an ear-
lier version of the program issued more than  12 months ago,
there are a great  many update  changes since  then that are
NOT listed above,  since those  have long since  been incor-
porated into  the program, and,  from our point of view, are
now ancient history.
─────────────────────────────────────────────────────────────

   ┌─────────────────────────────────────────────────────┐
   │AS YOU WILL NOTE FROM THE FOREGOING CHANGES, THE LAWS│
   │AFFECTING BUSINESS TEND TO CHANGE  VERY RAPIDLY,  AND│
   │THIS  PROGRAM IS  REVISED ON ALMOST  A DAILY BASIS TO│
   │KEEP UP WITH THE FLOOD OF  TAX AND LEGAL CHANGES THAT│
   │OCCUR.   ACCORDINGLY,  IF THIS PROGRAM IS MORE THAN A│
   │YEAR OLD,  A LARGE PORTION  OF THE INFORMATION  IN IT│
   │IS LIKELY TO BE DANGEROUSLY OUT-OF-DATE. WE ISSUE UP-│
   │DATES OF THE PROGRAM EVERY 3 MONTHS AT A VERY REASON-│
   │ABLE PRICE.  TRY US.                                 │
   └─────────────────────────────────────────────────────┘



AND COMING ENHANCEMENTS AND ATTRACTIONS NOW IN THE WORKS...
───────────────────────────────────────────────────────────

We are constantly expanding and updating the subject mat-
ter and coverage of this program, as well as adding new
features.  Here is a partial list of a few items we are
researching (and translating into plain English!) now, for
inclusion in the next two quarterly releases of the program
(Early 1993):

  .  AUTOMOBILE EXPENSES.  A new segment will be added on
     taking deductions for automobile and travel & enter-
     tainment expenses.

  .  ENVIRONMENTAL LAWS.  Extensive coverage of a broad
     range of federal environmental laws that apply to
     businesses.

  .  LIMITED LIABILITY COMPANIES.  Coverage of the new
     "limited liability company" laws that have recently
     been enacted in 18 states, creating a new entity
     that is sort of a hybrid of a corporation and a
     partnership, with the best features of each.

  .  FOREIGN DIRECT INVESTMENT REPORTING.  Coverage of
     federal laws requiring foreign businesses to report
     on their investments in the U.S.

  .  PENSION AND PROFIT SHARING PLANS.  Detailed coverage
     of the pros and kinds of all kinds of pension and
     profit sharing plans, IRAs, Keoghs, etc., and how
     one or more of these plans can work for your small
     business.

  .  SELECTING PROFESSIONAL ADVISERS.  We'll also be adding
     ed a section on how to go about selecting a lawyer,
     accountant, banker, etc.

  .  ARE YOU READY TO START A BUSINESS?  A new segment is
     to be added on characteristics of successful entrepre-
     neurs, and factors you should consider before you
     start a business.

  .  SHOULD YOU HIRE EMPLOYEES?  A new feature, which will
     suggest a few things you need to consider before you
     hire your first employee.

  .  AND, OF COURSE:  We will be adding a 1993 income tax
     planning module to the next release of the program,
     with 1993 personal income, corporate income, and estate
     tax calculations updated for 1993 law and rate changes.


            ┌───────────────────────────────────────┐
            │  OUR FAVORITE QUOTE FOR THIS QUARTER: │
            │"Congressmen are America's only native │
            │ criminal class." -- Mark Twain        │
            └───────────────────────────────────────┘