Act Now to Save on Taxes in M&A Deals
If you are considering selling your business any time in the next five years, it may be in your best interest to sell before 2011. Why? Because effective January 1, 2011, tax rates will revert to the rates in effect prior to tax cuts made during the Bush administration. Individual rates could go up as high as 39.6% (current high rate is 35%); while capital gains taxes will change to 10% and 20% (currently 5% and 15%). In addition, credits for dependent children will fall from $1,000 to $500 per child; dividends will once again be taxed at the ordinary income rates (currently they are 5% and 15%); and the estate tax will be fully reinstated with a top rate of 60% and a $1 million exemption. Since most business sales include a blend of capital gains and ordinary income, when considering the known capital gain increases, the pending health care surtax, and the fact that the top federal tax rate revert to the rates in effect prior to tax cuts in 2011, it just makes sense to act now.
Read more on this isse in the July, 2010 issue of "The Magazine" in the members-only section of www.printing.org.
Final Rule on I-9 Storage
The Department of Homeland Security (DHS) has issued a final rule that regulates how employers may use electronic systems to complete and to store their I-9 Forms. The Final Rule will take effect on August 22, 2010. The rule is substantially similar to an interim rule issued in 2006, but there are some changes worth noting, such as:
- Employers must complete Section 2 of the Form I-9 within three business (not calendar) days.
- Employers may use paper, electronic systems, or a combination of paper and electronic systems.
- Employers may change electronic storage systems as long as the systems meet the performance requirements of the regulations.
- Employers need not retain an audit trail that reflects each time a Form I-9 is electronically viewed; the trail need only reflect when the Form I-9 is created, completed, updated, modified, altered, or corrected. (The audit trail is intended to help Immigration and Customs Enforcement (ICE) determine whether the data on an electronic Form I-9 has been improperly tampered with.)
- Employers may provide or transmit a confirmation of a Form I-9 transaction, but are not required to do so unless the employee requests a copy.
The Form I-9 is available online at the U.S. Citizenship and Immigration Services (USCIS) website as a PDF fillable and printable form. The final rule permits employers to complete, sign, scan, and store the Form I-9 electronically (including an existing Form I-9), as long as certain performance standards set forth in this final rule for the electronic filing system are met. DHS cautioned that providing the option of electronic preparation and storage does not alter the requirement that the employer physically examine any documentation provided by the employee in the presence of the employee prior to completing the Form I-9.
Ask the Right Questions to Land the Work
Almost any industry sales rep can share a story about work that was once printed, but is now being disseminated via the web. Here's the real question: Has there been follow-up with that account to determine if that was really the best solution? Granted, dollars were saved - but what was the ROI? There are more and more cases in which smart advertisers are going back to print because when managed properly it doesn't impact ROI. Here's an opportunity for a rep to show the client that a well-managed print campaign using effective design targeted at the right audience is the right solution - not the cheapest.
Unemployed Not Seeking Jobs?
Some employers say they are struggling to find workers even though the jobless rate has climbed to 9.5% and about 15 million people are unemployed nationwide. Economists say that is because unemployed workers have fewer incentives to find jobs because unemployment benefits were extended to 99 weeks, and the collapse of the real estate market has made it difficult for people to move to areas with job openings. The job market itself also has changed. During the crisis, companies slashed millions of middle-skill, middle-wage jobs. That has created a glut of people who can't qualify for highly skilled jobs but have a hard time adjusting to low-pay, unskilled work.
The difficulty finding workers limits the economy's ability to grow. It is particularly troubling at a time when 4.3% of the labor force has been out of work for more than six months—a level much higher than after any other recession since 1948. Some economists fear the U.S. could end up with a permanent caste of long-term unemployed, like those that weigh on government budgets in some European countries.
Excerpted from "Some Firms Struggle to Hire Despite High Unemployment" by Mark Whitehouse, first published in The Wall Street Journal
Hard Times Hit Unions
The hard economic times the printing industry is facing have hit the unions, too. The latest membership report of the Graphic Communications Conference of the International Brotherhood of Teamsters (from December 2009), shows the union maintained 47,129 active members in the U.S. This is down from 51,841 in 2008. Historically, the union has lost an average of 4,110 members per year since July 1983. Membership losses from 1983 to 2009 total 106,871 according to official AFL-CIO reports and Department of Labor figures. The primary causes for the decline include plant closures and technology advances that require lower "manning" of equipment.
Note: The Printing, Publishing, and Media Workers Sector of CWA (which used to be the International Typographical Union back in the 1980s) hasn't reported membership figures in decades. We estimate that the Sector has about 3,000 members.
5 Things We Can Learn from Social Media
All business professionals can learn skills from social media that no school can teach, consultant Gautam Ghosh writes. Among the lessons to be learned:
- People have more in common than they have different.
- Conversation is key if you want to persuade or influence someone.
- The best way to learn is on the job.
- Don't get so caught up in the latest "new" thing that you miss the next big trend.
- Give to receive. Giving clients info that is useful makes them come back to you and increases your influence.
Member News
Welcome to the newest PGAMA members: Encore Recycling and Diamond Finishing. Both companies are located in Laurel, MD.
Corridor Printing, Inc., Columbia, MD, has been honored by CPrint® International, an organization of independently owned family-based businesses, for their significant sales growth over the past year.
Bindagraphics, Inc. announces the recent installation of a new Horizon PUR Perfect Binder. Company President Matt Anson says, 'With this acquisition, we enable printers to penetrate the ‘books on demand’ market, which can open doors for them to bigger projects down the road."
Upcoming
Events
| August 16 |
Early Bird Registration Deadline for MAGE Crab Feast-Sign up and pay by this date and member tickets are $55/person or $535 for a table. Early Bird Registrants also receive a FREE "Get Your Crab On" T-shirt! Call PGAMA to save your seat, 410-319-0900.
Sponsorship opportunities for the Crab Feast still available! Contact Debbie Woolbright at the PGAMA office for details, 410-319-0900.
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| August 24 |
Special Event: Xerox Workflow Solutions Workshop, 9:30am-3:00pm at the D.C. Xerox office, 1301 K Street NW, Washington DC, 20005 office. In this Interactive Knowledge Sharing Workshop, you'll learn how to: automate your pre-press activities; streamline your workflow; use a web storefront to increase revenue and customer retention; implement a marketing program to build your business and more. See a number of different solutions all geared at increasing productivity in one location, including the latest Xerox product line of production black and white and color digital presses. Learn more and register here.
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| September 1 |
Early Bird Registration Deadline for Executive Management Summit & Sales Symposium
Register by September 1 for the PGAMA/PIVA 2010 Executive Management Summit, and save $100! Introductory brochure for this event was mailed to members this week. Full brochure with full conference agenda coming soon. Get more info about the Summit and register at www.pgama.com/2010summit
Sponsorship opportunities for the Summit still available! Contact Carol Atwood at the PGAMA office for details, 410-319-0900. |
| September 9 |
Webinar: Creating Flawless Files that are Print-Ready, 2:00-3:00pm. A recent Printing Industries of America survey showed that 70% of printers need to repair more than half of all files submitted before they can be output successfully. Solid digital file creation is the key element to reproducing jobs in a time- and cost-efficient manner for print production. Go “under the hood” with Adobe CS5 and other desktop publishing applications and become a pro at preparing digital files for print production! Led by Joe Marin, Senior Analyst, Digital Technologies, Printing Industries of America. Cost is $49 for members/$99 for non-members. More info and register at http://www.printing.org/node/6166
***Printers: Purchase this webinar for your customers to strengthen your relationships, AND get problem-free files! |
| September 13-14 |
Workshop: Optimizing Color from Your Digital Press, Printing Industries of America headquarters in Sewickley, PA. Become or develop the "go to" person when it comes to troubleshooting color problems in your digital workflow. This brand new workshop was designed to supply you with a comprehensive look at what it takes to produce reliable, predictable, high-quality color on your digital press. It is a perfect blend of intense lab instruction and quality hands-on training, leaving you totally immersed in the subject of digital color and press optimization. Led by Julie Shaffer, Vice President of Digital Technologies, Printing Industries of America and David Zwang, Principal Consultant, Zwang & Company. Cost is $595 for members/$1095 for non-members. More info and register at http://www.printing.org/node/5960. |
| September 14-15 |
Government Affairs Event: Printing Industries of America Legislative Conference, Washington, D.C. This event serves to advocate public policy on behalf of individual companies, and helps build industry relationships with federal lawmakers and key administration officials. Meet Senators, Representatives, and Capitol Hill staff face-to-face! Attendance is FREE for members. Learn more and register at http://www.printing.org/printsvoice |
| September 16 |
Special Event: MAGE Crab Feast, 4:30-8:30pm at Blob's Park Pavilion in Jessup, MD. Plan to 'Get Your Crab On' at the biggest MAGE event of the year. New location, new menu and new activities will make this a fun-filled occasion for your clients, co-workers, family and friends. Tickets are $60.00 per person for members/$575.00 per table of 10. Non-member cost is $75/per person. Kids 12 and under are $20.
EARLY BIRD SPECIAL-Make your reservations and pay by August 16 and member ticket prices drop to $55/person or $535 for a table of 10. PLUS Early Bird Registrants receive a FREE "Get Your Crab On" Tshirt! Deadline for regular reservations: 9/9/10. Call PGAMA to save your seat, 410-319-0900.
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October 14-16
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Special Event: PGAMA/PIVA 2010 Executive Management Summit & Sales Symposium, at the Gaylord National Hotel just over the Woodrow Wilson Bridge near Washington, D.C. Get the latest information and new inspiration to lead your business to a successful future. Customize your conference experience and pick from an unprecedented 16 different presentations to attend, including an entire series of workshops geared just for printing sales professionals. More info and register at www.pgama.com/2010summit. |
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