February 17, 2015
by Bob Meyer, Editor of BarterNews
Want You To Know...When you sign up to receive the
FREE weekly Tuesday Report announcement your e-mail address
will never be sold, traded, or given to another party.
Note: We receive e-mails from people who have signed up
for the Tuesday Report, and then tell us they’re not
receiving our weekly announcement. In most cases this is because
they’re blocking unwanted e-mails.
ensure that our weekly Tuesday Report e-mail announcement
reaches your mail box, we suggest you add
to your address book or safe sender list.
If you are a frequent visitor to our site we suggest
you hit the "refresh" button from time to time as we add information
to our site several times a week
From the desk of Bob Meyer...
back issues of "From the Desk..." can be accessed by
free to forward our newsletter to your friends and
colleagues. We have a "box" at the end of the
newsletter for your convenience.
See you next week...)
Three Ways Using Barter Can Lower
Trade dollars are far more flexible than at first imagined. You
can use them to chisel away at the tax bill, and chip away at your
payroll. Here's a look at three ways you can use barter to reduce
the revenues of the tax collector.
Consider the business owner who, knowing she would be selling the
property in the future, wanted to make improvements on her real
Because she did not intend to "roll
over" the property on a tax-free exchange, she would have a capital
gains tax on any amount she received above her basis. But with a
creative use of the trade dollars in her account, she was able to
avoid any gain on the sale. This was accomplished by increasing her
property value with trade dollars spent on improvements.
Consequently, when she finally sold the property her tax bill was
nearly eliminated with the increased basis. Wisely, she used trade
dollars to lower the tax liability, while at the same time making
valuable improvements that increased the property’s marketability
Employee Costs Versus Contractor Costs
Every business owner knows it is less expensive to use independent
contractors than it is to hire employees.
cost the business owner FICA, worker’s compensation premiums and
other expenses, the cost of employees frequently soars above an
average cost of 25% of the actual payroll amount.
Independent contractors, on the other hand, cost only the amount of
their contract fees, since they are responsible for their own
An independent contractor who belongs to a
trade exchange, and who accepts trade dollars for (some) services
has created evidence of being in business — much the same as
if he or she has a business license or rents his or her own office
Because the aforementioned are things that business
owners do, an independent contractor who does them has shown a
strong indication of being a business owner. As opposed to someone
who simply performs tasks for another, yet claims to be an
Business owners who have workers with no chance of being classified
as independent contractors can still convert trade dollars into tax
savings. By setting up a Cafeteria Plan, under Section 15 of the
Internal Revenue Code, one can convert trade dollars to cash in
several ways. A Cafeteria Plan is a tax-qualified employee benefit
that allows employers to reduce employee wages, in order for the
employees to pay their own benefits with "before tax" dollars.
The employees get benefits that they would otherwise have to
purchase with "after tax" dollars, while the employer gets a reduced
payroll and therefore reduced payroll taxes. First, by arranging for
the employees to have a Premium Plan under Section 125, the owner
withholds dollars from the payroll that are then used to pay
premiums for the health plans which the employees select.
If the trade exchange has an insurance broker who takes commissions
on trade (which usually amounts to one month’s premium per year),
the owner is able to pay that premium with trade dollars and
conserve the cash from the employees for the month in question.
Besides converting the trade premiums to cash, the owner has
also reduced payroll taxes! This "double whammy" effect is further
enhanced by the fact that employees are happier than otherwise,
since they are also saving taxes on the benefits they are paying for
under the plan.
Second, by setting up programs with trade
exchange members in the medical professions, the owner can further
reduce payroll taxes through the Cafeteria Plan. And at the same
time can convert the trade dollars spent into cash.
trick is to withhold the amount for the Cafeteria Plan from payroll
that the employee expects to spend each year on unreimbursed medical
expenses — such as deductibles or co-payments, or for dental
expenses where there is no dental plan. If the business owner then
pays the costs of the dentists, chiropractors or the medical doctors
with trade dollars, the firm has converted significant amounts of
trade into cash.
As an example, some employers provide that
the Cafeteria Plan covers annual physicals for employees, then
provides the on-site physician for the exam. Since they then pay the
doctor with trade dollars, the withheld cash from payroll amounts to
a very efficient conversion of trade to cash.
As we've seen,
a truly efficient use of trade dollars cannot only replace cash
expenditures, but it can generate tax or worker's compensation
premium savings as well.
BarterNews.com — World's Largest
Hundreds of valuable articles,
techniques, and strategies are found in the following various barter
Offset & Countertrade,
Restaurant & Entertainment
Categories are found on the horizontal bar at the top - 3rd
button from right.)
Money-Making Reports Available From BarterNews
Is Your Trade Exchange Missing Out On
Valuable New Business?
your barter company's listing on BarterNews.com isn't current, you
are definitely missing out on new business. The web site
BarterNews.com receives heavy traffic — with over 150,000 page-views
every month. Entrepreneurs and corporate executives check the
thousands of articles, the weekly "Tuesday
Report," and the "Contacts
Section" of our site. They use the latter to find barter
companies with which to do business.
Is your barter company's listing up-to-date?
To keep your listing current is very easy. See the links below to (A)
update any changes to your company's listing, such as new location,
phone number, web site or other information, and (B) if your company
has not been listed.
Here's how to get on board:
make changes to your listing
Why You Should Meet With Your Job
During a job search, references are
every bit as important as a sharp résumé and strong
interview. Here, Peter K. Studner
shares five important things
to do when organizing your references.
Each time you make it past the résumé-review
stage and interview with a potential employer, the meeting seems to
go really well. But then — silence. If you do hear from the
employer, it’s only to say that they've decided to go with another
candidate. As you wearily send out application after application,
you just can't figure out what's going wrong. Peter K. Studner has
an idea: One of your references might inadvertently be derailing
your job search campaign.
"When a potential employer checks
your references, it's because they're serious about hiring you,"
says Studner, author of Super Job Search IV: The Complete Manual
for Job Seekers & Career Changers. "And especially in today's
competitive market, a single lukewarm reference can kill your
candidacy. The good news is, by choosing your references
thoughtfully and talking with them before giving out their contact
information, you can guide the process in your favor."
Studner, who is a master career counselor and whose outplacement
firm has helped over 27,000 people transition from one job to the
next, speaks from experience. In Super Job Search IV, he
guides readers through the complicated process of evaluating their
accomplishments, contacts and goals; then channeling those things
into a targeted and ultimately successful job search campaign. Best
of all, his book is a systematic approach to finding a job that
includes online resources and an app.
Studner shares the
following things to do when organizing your references:
I) Choose your references carefully. Your best
references will support claims you've made about your achievements,
skills and experience; so ideally, they'll be people who have worked
closely with you in the past. Consider former managers and
supervisors, of course, but if you've been in a managerial position
yourself, you might also want to include a few people you've
"In addition, put some thought into how your
references might present you to potential employers," Studner
advises. "Effective references are good communicators who can
discuss you and your work in an objective manner without
exaggerating or offering long-winded tributes that might only
provoke more questions in the interviewer's mind."
II) Think about how each reference can best support you. While
most references will give you a good to excellent report, some might
inadvertently include a hint that your previous work was less than
standard or that the circumstances of your leaving were not good.
For instance, "Cameron is a high achiever and doesn’t suffer fools,"
might make an interviewer think, what if Cameron is too picky
and demanding to get along with our team?
thought into what you'd like each reference to say about you,"
Studner recommends. "Think about the specific skills and
accomplishments you'd like them to emphasize. Keep in mind that this
information might vary from person to person, and even from
potential job to potential job."
III) Set up a time
to meet. Now it's time to discuss your job search, career
goals, and résumé with your references. "Whenever
possible, your reference meetings should be face-to-face," Studner
says. "If distance is prohibitive, though, consider a video
conference or phone call. However you meet, make sure your
references have a copy of your résumé."
IV) Discuss the hard questions. When potential
employers call your references, it's unlikely that the employer will
simply say, "So, tell me about Taylor." Ergo, your references will
probably have to go beyond the script you’ve given them about your
skills and accomplishments. "That’s why it's a good idea to talk
about how the reference would approach common interview questions,"
Studner says. "This conversation might be uncomfortable at times,
but it’s best to have an honest discussion about how each reference
might approach difficult questions."
To guide the
discussion, here are 13 common questions potential employers might
ask your references:
How did you know the candidate?
What were the circumstances of his leaving the company?
Was she on any performance improvement plan? How did she do? (This
may be asked if there are hints of any problems with your
What are his strong points?
areas does she need improvement?
Would you hire him again?
were her greatest achievements at the company?
Who else supervised him? (Be prepared — another supervisor may
also be approached, even though he is not on your list.)
Did the candidate live up to your expectations?
How were her leadership skills? (This question will be asked if you
are applying for a managerial position.)
Did his colleagues appreciate him?
Was she reliable?
Anything else you can add about the candidate?
Keep your references in the loop. So that they aren't
blindsided, keep your references informed about positions to which
you've applied, interviews you've had, and potential employers who
have requested contact information for references.
your reference will update you about when they're approached and how
the discussion went," Studner suggests. "If appropriate, nurture the
relationship with non-job-search communication, maybe over lunch or
coffee. And when you get hired, thank your references for their
"Just like your résumé and interview
question responses, the more time and energy you put into
cultivating your references, the more valuable they'll be," he
concludes. "So don’t treat references as an afterthought —
these people can make or break your job campaign!"
Peter K. Studner is the author of Super
Job Search IV. He is a master career counselor and former chief
executive as well as board member of companies in the United States,
France, and Great Britain. He has helped thousands of people with
their career transitions and trains other career professionals to
deliver this easy-to-follow program.
How To Get More Sales In
Our street-smart restaurant
marketing report shows proven ways to rapidly boost your
restaurant's sales & profits.
The Growth and Use of Secondary
Capital (New Money) Creates Unprecedented Wealth In Today's New Age
There are many forms of secondary
capital — which can be defined as any financial instrument that
measures and communicates value in a common language. Would you like
to see and learn more about the many forms of secondary capital?
We have 70 free, informative and
inspiring, articles for you in our "Secondary Capital Section."
Check it out...
Get New Money-Making Ideas And
obtain useful, informative ideas and contacts in every available
back-issue of BarterNews.
barter company in the world is listed on our web site,
click through to our Global List
of Barter Companies.
We welcome your
comments, questions, and observations.
Copyright BarterNews 2015. Redistribution of BarterNews
content expressly prohibited without the prior written permission of BarterNews.