The World of Computer Software/World_Of_Computer_Software-02-387-Vol-3of3.iso/s/sba93_1b.zip/F235.SBE

Text File | 1993-03-17 | 35KB | 774 lines

            ┌───────────────────────────────────────┐
            │ UPDATE INFORMATION--CHANGES IN RECENT │
            │ QUARTERLY RELEASES OF THIS PROGRAM:   │
            │                                       │
            │ (Numbers in brackets indicate YEAR/QTR│
            │  when update or new feature was added)│
            └───────────────────────────────────────┘


       COMING SOON....!!!  IN THE NEXT RELEASE OF SMALL
       BUSINESS ADVISOR:  "SMART" TEXT FILES, THAT NOT
       ONLY EXPLAIN THE LAW TO YOU, BUT HOW AND WHETHER
       IT APPLIES TO YOUR FIRM, BASED ON THE FACTS YOU
       HAVE ENTERED ABOUT YOUR BUSINESS....AVAILABLE IN
       VERSION 93/2, FOR THE SECOND QUARTER OF 1993!!!


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

  .  NEW FEDERAL FAMILY LEAVE LAW ADDED.  We have added a
     discussion of the key provisions of the new Family
     Leave bill that was signed into law by President
     Clinton on February 5, 1993.  This new law applies
     to all employers (including non-profit organizations)
     with 50 or more employees in a 75-mile radius.  [93/1]

  .  OFFICE-IN-THE-HOME DEDUCTION RESTRICTED.  Updated to
     reflect the new (1993) U.S. Supreme Court Decision
     (Soliman case) that limits home office deduction
     for certain type of businesses conducted mostly out-
     side of the home. [93/1]

  .  NEW 1993 TAX MODULE.  This release includes a 1993
     income and estate tax planning module, as well as a
     1992 module, either of which is selectable from the
     Main Menu of the program.  [CAUTION:  The 1993 tax
     module is based on 1993 tax rates, brackets, and
     laws as they stood in February, 1993.  Since the
     new Administration will probably make major changes
     in the tax law in 1993, this module may quickly be-
     come OBSOLETE before the end of 1993.  If so, obtain
     our latest version, which, as usual, will incorpor-
     ate any major tax law changes within a few weeks of
     enactment.] [93/1]

  .  NEW ADA CHECKLIST COMMAND ADDED.  A new menu selection
     ("DISAB") has been added onto the CHECKLISTS submenu
     of the program, which displays an extensive checklist
     that an employer should fill out, when interviewing a
     disabled person, in order to help make sure that there
     are no violations of the Americans with Disabilities
     Act in the hiring process with regard to that person.
     [93/1]

  .  NEW FEDERAL EMPLOYMENT TAX DEPOSIT RULES.  The segment
     on withholding taxes now includes a discussion of the
     new (1993) and simplified federal income tax and FICA
     tax deposit requirements.  [93/1]

  .  NEW INFORMATION ON AIR QUALITY OPERATING PERMITS. This
     new text segment (see EPA menu selection, or use index)
     provides highly useful and current information about
     whether your business needs to obtain EPA or state air
     quality operating permits, under recent Clean Air Act
     regulations issued by EPA in 1992.  [93/1]

  .  INCREASE IN CORPORATE ESTIMATED TAX REQUIRED PAYMENTS.
     Updated to reflect January, 1992 amendments (and FUR-
     THER amendments in February and July and yet again
     in late '92) to the corporate estimated tax rules,
     which now require an increase in the percentage of
     current year estimated tax, in general, that must be
     paid in by corporations to avoid penalty, for years
     1992-1996.  Prior to 1992, corporations were general-
     ly required to pay in 90% of the current year's tax
     as estimated tax payments.  However, during the next
     few years (1992-1996), the percentage to be is paid
     in as estimated tax is increased as follows:

         . Tax years beginning in 1992
           (but before July 1, 1992)    --  93%

         . Tax years beginning on or
           after July 1, 1992           --  97%

         . Tax years after 1996         --  90% (In theory)

     (The initial revisions, which you may have heard
     about, would have phased-in the increases, but
     Congress changed that law, to the above schedule,
     within a couple of months of its passage, then
     changed it twice more in July and November.  Things
     change faster and faster....) [93/1]

  .  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]

  .  PENSION AND PROFIT SHARING PLANS.  We have also added
     to the program a wide-ranging discussion of various
     types of pension and profit sharing plans, their pros
     and cons, etc.  Everything from 401K's to "target
     benefit plans."  (More than you ever really wanted to
     know about retirement plans, but were too gunshy about
     lawyers' fees to ask, in short.)  [93/1]

  .  ENVIRONMENTAL LAWS.  This is one of the biggest con-
     cerns affecting businesses now, especially since the
     recent passage of the massive amendments to the Clean
     Air Act, which will impact virtually every small busi-
     ness with a whole new layer of complex regulations
     in the near future.  Forewarned is forearmed, so we
     think you will find this information EXTREMELY valu-
     able, particularly if you have been blissfully unaware
     of what has already become law in this area, and what
     is coming.  If you intend to stay in business in the
     'Nineties, you MUST be aware of penalties, up to
     $25,000 A DAY, for violating environmental laws and
     regulations, and how to steer clear of same.  (How to
     do your part to take care of the environment, and how
     to file for bankruptcy if you don't.)  This area of
     business regulation is becoming so important that we
     have now created a new menu item, on the "LEGAL
     MATTERS" submenu, the "EPA" command, for quickly ac-
     cessing this important environmental law information.
     [93/1]

  .  FOREIGN DIRECT INVESTMENT REPORTING.  We are now cover-
     ing new federal laws requiring reporting of foreign-
     owned investments in U.S. businesses and real estate,
     what forms to file, and how those new rules may apply
     to you in unexpected situations, in these times of
     growing global business transactions (not to mention
     raging xenophobia). [93/1]

  .  LIMITED LIABILITY COMPANIES.  It walks like a duck, it
     talks like a duck, but it's taxed like a goose.  What
     is it? It's not a corporation, it's not a partnership,
     and it is definitely not a sole proprietorship....What
     the heck is this new thing?  It's called a "limited
     liability company," an interesting, and potentially
     useful new type of business entity that you can now
     set up, under the laws of eighteen states (and more
     to come).  And the IRS has ruled that such entities
     are generally taxable as partnerships, not as corpor-
     ations.  Expanded information on this new kind of
     legal entity, now adopted as a sort of "hybrid" of a
     corporation and a partnership, in 18 states, has been
     added to this version of the program. [93/1]

  .  VACCINE EXCISE TAX TERMINATED.  The federal excise tax
     on vaccine manufacturers has terminated, as of the end
     of 1992.  For details, see the "EXCISE TAX" selection
     on the "TAX INFO" menu. [93/1]


                        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 (for most states).

  .  GASOLINE TAX RATES ADDED.  Coverage has been expanded
     to include state gasoline rates for all 50 states and
     the District of Columbia as of early 1993. [93/1]

  .  ARIZONA LIMITED LIABILITY COMPANY LAW.  Added coverage
     of "LLC" law enacted by Arizona. [93/1]

  .  ARIZONA SALES TAXES.  Coverage of the Arizona sales
     and use tax law has been expanded. [93/1]

  .  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]

  .  ARKANSAS SALES TAX EXPANSION.  More detailed discussion
     of Arkansas sales and use tax laws, including recent
     expansion of sales tax (gross receipts tax) to cover
     a number of different kinds of service businesses.
     [93/1]

  .  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.)  [93/1]

  .  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.  [93/1]

  .  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%. [93/1]

  .  COLORADO LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of "LLC" law enacted by Colorado. [93/1]

  .  COLORADO WITHHOLDING OF TAX ON SALE OF REAL ESTATE.
     Added new section on new (1993) law requiring
     persons selling real estate to nonresidents of
     Colorado to withhold income tax. [93/1]

  .  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]

  .  DELAWARE LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of "LLC" law recently enacted by Delaware. [93/1]

  .  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]

  .  FLORIDA LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of "LLC" law enacted by Florida. [93/1]

  .  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]

  .  ILLINOIS LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of "LLC" law enacted by Illinois. [93/1]

  .  ILLINOIS SALES TAX.  Expanded information is now now
     provided on the Illinois sales and use taxes. [93/1]

  .  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]

  .  IOWA LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of "LLC" law enacted by Iowa.  [93/1]

  .  IOWA TAX BRACKETS ANNOUNCED FOR 1993.  Revised to
     reflect new maximum tax bracket for Iowa individual
     income tax in 1993. [93/1]

  .  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]

  .  KANSAS LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of the "LLC" law enacted by Kansas. [93/1]

  .  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]

  .  MARYLAND LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of the "LLC" law enacted by Maryland. [93/1]

  .  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]

  .  MINNESOTA LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of "LLC" law recently enacted by Minnesota. [93/1]

  .  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]

  .  NEVADA LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of "LLC" law enacted by Nevada. [93/1]

  .  NEW JERSEY MANDATORY DISABILITY LAW.  Added coverage
     of New Jersey law requiring employers to provide disa-
     bility insurance coverage for their employees. [93/1]

  .  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]

  .  NEW YORK MANDATORY DISABILITY LAW.  Added coverage
     of New York law requiring employers to provide disa-
     bility insurance coverage for their employees. [93/1]

  .  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]

  .  OHIO ADDS NEW PERSONAL INCOME TAX BRACKET.  Updated
     to reflect new 7.5% maximum tax rate under Ohio per-
     sonal income tax, starting in 1993. [93/1]

  .  OHIO EXPANDS SALES TAX TO SERVICES.  Updated to reflect
     new sales tax law, effective January 1, 1993, which
     extends the sales tax to various specified services.
     [93/1]

  .  OKLAHOMA LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of "LLC" law recently enacted by Oklahoma. [93/1]

  .  OKLAHOMA SALES TAXES.  Coverage of the Oklahoma sales
     and use tax law has been expanded. [93/1]

  .  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]

  .  RHODE ISLAND LIMITED LIABILITY COMPANY LAW.  Added
     coverage of "LLC" law recently enacted by Rhode
     Island. [93/1]

  .  RHODE ISLAND MANDATORY DISABILITY LAW.  Added coverage
     of Rhode Island law requiring employers to provide disa-
     bility insurance coverage for their employees. [93/1]

  .  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.
     [93/1]

  .  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.
      [93/1]

  .  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]

  .  TEXAS LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of "LLC" law enacted by Texas. [93/1]

  .  UTAH LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of "LLC" law enacted by Utah. [93/1]

  .  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]

  .  VIRGINIA LIMITED LIABILITY COMPANY LAW.  Added cover-
     age of "LLC" law enacted by Virginia. [93/1]

  .  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]

  .  WEST VIRGINIA LIMITED LIABILITY COMPANY LAW.  Added
     coverage of "LLC" law enacted by West Virginia. [93/1]


   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.
       [92/1]

─────────────────────────────────────────────────────────────
             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 3 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
(Spring/Summer 1993):

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

  .  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.


OTHER PLANNED FEATURES....
──────────────────────────

We also add new features to the program from time to time,
and may be adding such things in the next year as:

        .  a checkbook/tax records manager;

        .  a loan amortization program;

        .  a tax depreciation calculator;

        .  more "consulting session" topics; or

        .  any of a number of other modules we are
           considering right now.

    All of which, like our tax calculation module and
    recently added consulting module, will be accessible
    from the main program's menu, in one neat integrated
    package.  But don't expect any of the latter new fea-
    tures in the first quarter '93 update; some of them
    may take us a year or so to complete (if ever, before
    WINDOWS (R)* takes over the world, and we grudgingly
    migrate to it along with the rest of humankind).

    (* WINDOWS is a registered trademark of MicroSoft
       Corporation, in case you've been living in a cave
       or have been off-planet and hadn't heard of it,
       but our lawyers insisted we add this footnote.)

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