Finding a Free Government Grant

Free government grants are awards given by the federal government to support the public interest. This can be as broad as student loans guaranteed by the federal government, to specific benefits to foundations and charities that work in public interest. The government expects no direct benefit from the disbursement of free government grants. Arrangements where the government would expect specific good and services would constitute a contract, but grants generally have broad range in what they may be used to fund or procure.

Does the government have the legal authority to disburse free government grants?

The provisions that allow for persons to receive a free government grant are in Title 31, Section 6304 of the US Code. It specifically states that the US Government may transfer things of value to local governments or other entities to benefit the public interest, without much involvement from the government in the use of these funds.

How does a free government grant benefit the average individual?

Receiving free government grants can be a windfall for private individuals that would otherwise have to fund their activities with private loans. Disbursed grants are not repaid to the government and there is the guarantee that offers recipients a significant degree of freedom in determining how it is spent. They should of course, spend it according to the conditions under which they applied for it. A college education, private residence or small business can be funded with free government grants, so long as sufficient need is established by the applicant.

What are types of free government grants?

Block grants – these grants are disbursed to state and local governments and not individuals. The disbursements of these grants from the government are determined by formula and these grants are spent at the discretion of the state.

Housing grants – these grants are intended to help potential homeowners buy, renovate or invest in homes. Sufficient need must be established as these grants are generally for low income families. Federal Housing Administration insurance is a type of grant that insures private lenders when lending to low income families that would ordinarily not receive credit.

Small business grants – in keeping with the belief that small businesses stimulate local economies and employ local residents, there are free government grants for small businesses to expand, make capital investments and hire more employees.

College grants – Pell grants of up to $1,500 are offered to exceptional college students to help them pay for college expenses. This free government grant is not a loan and will not have to be repaid by the student. In addition to Pell grants, several government subsidized loans exist that have fixed interest rates and favorable rates for students.

Should I trust organizations that claim to help me find free government grants?

No. Generally, these organizations research free government grants that are already public knowledge and sell this knowledge to unsuspecting consumers. You are best served researching free government grants yourself and many federal agencies will have clear guidelines on how to apply for free government grants for education, business and housing. Do not pay for information on receiving free government grants.

Everything You Should Know About a Small Business

What is a Small Business?

A Small Businessis classified as a commercial endeavor that is operated on a smaller scale than its commercial counterparts. Although there does not exist a definitive parameter with which to qualify a business as a Small Business, a

Small Business will typically retain an employee base ranging from 1 to 15 individuals; furthermore, a Small Business will typically report lower amounts of revenue in contrast with larger businesses and corporations – with regard to the classification of commercial activity as a Small Business, the following are common examples of Small Businesses:

A Home business can be classified as a small business; a home business operating as a Small business typically involves the formulation and accomplishment of a multitude of tasks taking place within the home of the founder

An Internet business can be classified as a Small Business; due to the fact that maintenance of an online-based commercial endeavor can be conducted through the Internet, offices and large employee numbers are not always required

What is an Online Small Business?

Since the development – and subsequent advancements latent within Internet-based commercial activitytaking place through the internet marketplace – of ‘E-Commerce, or electronic commerce, Small Business opportunities can includethe provision of products and services available purchase and delivery through online-based commerce; the following are some examples of the most common types of online-based Small Business activities:

Web design, domain management, online consultation, and marketing development

The production of freelance media; this can include editing, writing, proofreading and research conducted on a ‘per-project’ basis

The manufacture, production, sale , and management of products or services; in many cases, this type of vendor-based Small Business will act as a third-party between buyers and sellers

Types of Small Businesses

A Small Businesscan include the provision of products or services conducted using one’s home or residence as a base of operations or an ad-hoc office. Individuals who engage in starting a Small Business may utilize their homes in order to eliminate start-up costs with regard to commercial activity and business endeavors; the following are some common types of products and services offered by in-house Small Businesses:

Consultation services, event planning, analysis, and project management

The provision of educational workshops, classes, lessons, and instruction; these may be conducted from one’s home

Home-based product assembly, manufacturing, and management

Retail-based commercial activity; this includes, vending, resale, wholesale, and consignment

Small Business Taxation

A Small Businessis subject to any and all pertinent taxation requirements; a Small Business that maintains employees, provide benefits, and possess liabilities must satisfy applicable tax documentation:

IRS Form 8829: This form is used in order to claim any expenses that are incurred as a result of operating a self-employed, online-based Small Business conducted from one’s home or residence

IRS Form 1040: This form is a standard form used for filing taxes; line 30 on this particular form entitled ‘Schedule C’ allows the owner of an internet-based smallbusiness to substantiate profits or losses as a result of operating an online-based small business within the realm of self-employment

Schedule C – EZ: This form is designated for a Small Business operating from a home or residential base of operation(s) that reports business expenses not exceeding $50,000

Investigations Continue Into Plywood from China

On November 9, 2012, the International Trade Commission (USITC) announced that continuing investigations allege that hardwood plywood from China was subsidized and sold for less than fair value in the United States. All six Commissioners with the USITC agreed that investigations should continue.

Hardwood plywood and decorative plywood is made when two layers of wood veneer are glued to a core of medium density fiberboard, particleboard, oriented strand board, or other types of lumber. The core is usually made of oak, birch, maple, poplar, or bamboo, and the wood is used on furniture, cabinets, underlayment, wall paneling, and more.

The Coalition for Fair Trade of Hardwood Plywood petitioned for the following individual members:

•   Columbia Forest Products in Greensboro, North Carolina
•   Commonwealth Co., Ltd. in Whitehall, New York
•   Murphy Plywood in Eugene, Oregon
•   Roseburg Forest Products Co. in Roseburg, Oregon
•   States Industries LLC in Eugene, Oregon
•   Timber Products Company in Springfield, Oregon

There were a total of 20 producers affected by the possible fair trade violations, and these producers are located in the following states: Arkansas, Illinois, Mississippi, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Virginia, Washington, and West Virginia. There were a total of 1851 employees with the affected producers.

U.S. consumption of the plywood products was an estimated $2,014,000,000 in 2011, and about $707.3 million of U.S. imports involved hardwood plywood from China. China exported the most plywood to the United States, for other countries only imported $632.7 million of similar products in 2011.

It is important to note that the investigation does not involve structural plywood, plywood used for cork faces or cork backs, multilayered flooring used for CVD/AD order, or other types of plywood that are used for anything besides basic finishing.

Source: U.S. International Trade Commission

Understanding the Law Behind Payroll

Payroll is the total of financial obligations to employees in terms of salary, bonuses and deductions for services such as transit reimbursement and health insurance. The effective functioning of payroll ensures that a business remains running optimally, which necessitates the hiring of additional personnel to perform payroll services in larger companies to manage payroll and ensure its timely and accurate payment. Without effective payroll management, employers can be prone to mistakes, noncompliance with the law and a host of legal liability issues. The employer is mandated by law to keep accurate records of employee payroll as well as make the appropriate tax contributions.

What are payroll taxes?

Payroll taxes are deductions made by the employer on behalf of the government to fund entitlement programs as well as income tax. Payroll services personnel may be needed to ensure compliance with state and federal laws on tax withholding laws. Taxes paid from payroll into Social Security and Medicare is matched by employers. Given that payroll taxes are usually an intersection of federal, state and local law, compliance can be difficult. Often there are a number of deductions for state disability, unemployment insurance as well as school and other programs that are held in trust. It is the responsibility of the employer to be in compliance with tax laws and hand over the withheld taxes to the government.

Employers are responsible for the following payroll taxes:

Social Security (6.2%)

Medicare (1.45% of wages)

Federal unemployment taxes

State unemployment taxes

Under the Federal Insurance Contributions Act half of contributions to entitlement programs are paid by the employer and the other half by the employee.

What are payroll laws?

There are a number of payroll laws and some laws may vary by state:

Minimum wage – although there is a federal minimum wage law, some states, like New York will require an even higher minimum age.

Overtime – the Fair Labor Standards Act mandates that overtime pay must be made when an employee exceeds forty hours worked in a week. Any subsequent hours worked must be compensated with “time and a half” pay. Exceptions include domestic workers that live with the employer who have a higher threshold for overtime. Certain other employees are not eligible for overtime such as salespersons, computer professionals and certain administrative or professional workers. A payroll or labor lawyer will be able to determine which employees are exempt.

Payroll tax – employers are obligated by federal law to withhold the above mentioned payroll taxes

Frequency of pay – employees are generally paid biweekly, but other arrangements include seasonal, daily, monthly and in some rare cases, semiannually or annually. Payroll taxes will be scaled to match this payroll period.

What are payroll services?

For smaller businesses that cannot afford to have full time personnel managing payroll, specialized payroll services exist with payroll software and trained professionals that keep track of payroll laws and changes that affect how payroll is disbursed to employees. Some payroll services may provide further services typically provided by human resources personnel such as tracking benefits plans. Payroll services offer a number of ways to disburse salary, usually through checks sent to the employee, but also newer options, such as direct deposit. Payroll services can also provide pay stubs to employees, although this is not required by law. Pay stubs are useful for an employee to keep track of the taxes withheld as well as earnings to date.

What is payroll software?

Small businesses may decide to use payroll software to automate their payroll needs. This software can calculate deductions and create paychecks as well as manage benefits plans. There may be issues with keeping the software current, which will lead many payroll software makers to offer live support, automatic updates, or ancillary payroll services to augment the payroll software made available to small businesses.

IFRS (International Financial Reporting Standards)

What are the International Financial Reporting Standards?

The International Financial Reporting Standards are a set of accounting principles that provide guidelines for the proper reporting of financial data. The standards of the IFRS are set by the International Accounting Standards Board in London, United Kingdom. The standardization of the principles of accounting ensures the transferability of financial reporting standards between countries as the lack of such standards would mean that financial data would not be accurate and readily understood by a company or investor in a different jurisdiction or country that the reporting company is located at.

Although the United States currently abides by the Generally Accepted Accounting Principles (GAAP), the US has begun to change accepted accounting principles and standards to the International Accounting Standards Board, in order to standardize its accounting principles with the principles used by the rest of the world. If completed on schedule, this change will happen in 2014. Principles of accounting must be standardized to provide the best possible information for potential investors as well as allowing for the finances of two companies to be compared.

What are the characteristics of financial statements under the IFRS?

The core tenants of the IFRS are to make financial statements reliable, clear and comparable to other statements. This is the reason for instituting a dedicated framework for all businesses to report finances, much in the way a unified currency streamlines purchasing decisions across national borders.

Financial statements under the IFRS must contain the following elements:

Statement of Financial Position – this is a balance sheet that reports on the financial condition of a company and expresses its net worth at a given point in the year. The balance sheet will have three parts, consisting of assets, liabilities and equity. The assets are listed first with the assets that are easiest to liquidate and the top of the sheet. Assets listed include cash, accounts receivable and equipment. Liabilities will include accounts payable. Equity will include stocks and earnings.

Statement of Comprehensive Income – the owner must list all items contributing to profit and loss and the net income when accounting for the profit and loss factors. This includes revenue, tax payments, and financing totaling up to the comprehensive income.

Statement of Changes in Equity – this statement shows the comprehensive income and other changes in equity, such as investments by the owners, dividends and withdrawals of capital. This statement is optional if there is no change in owner investment or any of the other changes in equity.

Cash Flow Statement – A cash flow statement is an accounting document that specifically assesses the amount of cash that is handled by a business and the ultimate destination of the infusion of cash. Cash flow statements are usually needed for financing to prove to lenders that companies have adequate cash flow to satisfy repayment demands. Cash flow statements are also released to shareholders and potential investors do that they may judge the short and long term financial health and flexibility of the company.

Accounts Payable: Your Quick Guide

Introduction

Accounts payable is a business record of amounts owed to other entities for goods and services already received or utilized. Account payable services are critical for most companies as it expedites the delivery of items while waiting for payment options to process. Most Americans receive accounts payable service every day, usually in the form of utilities where a bill is sent for usage after their usage of the good has been determined and quantified.

How does accounts payable work for businesses?

The key to accounts payable is the cash conversion cycle that determines how long it will take for the business entity to receive payment for products and services. A company that suffers from poor cash flow will lose flexibility in inventory management, paying and maintaining relationships with suppliers and delivering more products to other potential clients. To ensure the continued flow of cash, organized accounts payable is necessary to ensure that accounts are settled with suppliers through the expedited payment of invoices. Accounts payable will work in conjunction with accounts receivable to ensure that company cash flow remains stable and flexible and that excessive debts are not outstanding or uncollected.

Among the important functions of accounts payable is invoice processing. After the accounts payable department determines that the invoice is legitimate and matches a purchase order, it is forwarded to the employee in charge of invoices of the same type. In large entities, this may be an entire department in accounts payable devoted to sorting invoices of specific types or vendors. If there is no verification system in place to determine if the invoice is legitimate, then the invoice is typically passed to the person that orders the goods or service who must then match the item to a purchase order. After this is fulfilled, the invoice is returned to accounts payable, where payment to the vendor will be arranged, usually through a prior approved system.

What are the responsibilities of accounts payable personnel?

In especially large enterprises, controls to prevent fraud are often lacking. As such, many of these entities may be bilked by vendors or subject to other fraudulent actions. Accounts payable personnel but by able to prevent accidental reimbursement for expenses submitted by employees and vendors alike. In other cases, accounts payable personnel must also be aware of fraudulent invoices or invoice-like documents designed to trick the commercial entities into reimbursing expenses that do not exist. For this reason, even the most modern accounts payable automation systems will require human supervision and investigation to prevent double payment, exploitation or fraudulent payments.

How do business entities use accounts payable software?

Accounts payable software automates some functions of typical accounts payable work by organizing items such as invoices, packing slips and purchase orders to ensure each item is accounted for and the debt is paid. The accounts payable software organizes these accounts, which minimizes the potential for lost documents or other human errors. Modern accounts payable software can scan documents and recognize words and phrases that will then match the invoice to a purchase order. This saves on time as it prevents the manual scanning of documents and the need to forward the invoice to the purchaser for verification.

Understanding Accounting Principles

What are the principles of accounting?

The principles of accounting have varied in the past few decades, with several organizations having the final say on proper accounting standards. Current accounting standards for state and local governments are set by the Governmental Accounting Standards Board. The GAAP accounting standards are determined by the Financial Accounting Standards Board. These standards are not law, but regulatory agencies mandate that this form be used for the sake of convenience and ease of interpretation. Although the United States currently abides by the Generally Accepted Accounting Principles (GAAP), the US has begun to change accepted accounting principles and standards to the International Accounting Standards Board, in order to standardize its accounting principles with the principles used by the rest of the world. If completed on schedule, this change will happen in 2014. Principles of accounting must be standardized to provide the best possible information for potential investors as well as allowing for the finances of two companies to be compared.

What are the principles of accounting for the federal government?

Federal Accounting Standards Advisory Board publishes handbooks to advice federal agencies and entities that receive federal money. These handbooks are lengthy with important listings such as proper terms to use when composing financial statements and listing of proper abbreviations. There are also a number of procedures based on specific functions of federal agencies and expenses common to federal entities.

What are the International Financial Reporting Standards?

The International Financial Reporting Standards are a set of accounting principles that provide guidelines for the proper reporting of financial data. The standards of the IFRS are set by the Board of International Accounting Standards Committee in London, United Kingdom. The standardization of the principles of accounting ensures the transferability of financial reporting standards between countries as the lack of such standards would mean that financial data would not be accurate and readily understood by a company or investor in a different jurisdiction or country that the reporting company is located at.

What are the general obligations of accountants under principles of accounting?

Regardless of the principles of accounting the accountant abides by, there are usually commonalities among these guidelines. Basic accounting principles generally obligate the accountant to act in good faith and engage in full disclosure of all potential issues with the entity’s finances. Accountants must offer the most realistic view of the company finances rounding figures down and anticipating potential losses. Under no circumstances should an accountant that follows conventional accounting principles overreport income or underreport expenses. Doing so will cause a financial liability for the entity that anticipated greater gains or fewer losses based on conclusions gleaned from financial statements released by the accountant.

In additions to rules on disclosure and good faith, the accountant is generally obligated under accounting principles to remain consistent on the time periods that the financial reports assess and keep the monetary amounts consistent, without accounting for inflation that would make the item or expense worth more or less at present day.

Google Launches Touchscreen Chromebook

Google on Thursday introduced a high-resolution Chrome OS portable computer equipped with a touchscreen. The new gadget, called Pixel, represents a shift that blurs the boundaries between the traditional key-board oriented laptops and the touch-oriented tablets. Moreover, the invention also distorts the company’s Web-centric operating system and its mobile Android platform.

Fulfilling statements made last years, Google Senior Vice President of apps and Chrome, Sundar Pichai, demonstrated the Chromebook Pixel, the first Chrome operating system device to power users at a media event in San Francisco on Thursday.

Mr. Pichai described the new invention as both a reference device to exhibit Google’s hardware partners as to how a Chrome touch device can work and to boast the company’s new engineered product.

The Chromebook Pixel features a 239 PPI screen and an Intel Core i5 processor. Mr. Pichai claims the screen is the highest resolution screen that’s even been featured on a laptop. For sake of comparison, Apple’s MacBook Pro possesses a retina display of 220 pi.

Mr. Pichai also highlighted the device’s blazing speed, “It’s an incredibly fast machine,” he said. “In my experience, this is the fastest laptop I’ve ever used.”
At roughly 3 and a half pounds, the Chromebook Pixel is a pound heavier than the MacBook Air, which appears to be the Pixel’s main competition, at least with regards to price. Despite its weight, the Pixel is a beautifully designed piece of equipment, one that includes a number of custom-design components. Mr. Pichai insists the Pixel compares favorably with Apple’s notebook.

Google has partnered with Verizon to provide LTE wireless service to the Pixel. This partnership offers one TB of Google Drive storage at no cost for up to three years. This much storage space would typically cost consumers $600 a year.

The Wi-FI capable version (32 GB) of the Pixel is available for $1,299. This version can be ordered through the Google Play Store, with shipping taking roughly one week. The LTE version (64 GB) of the Pixel costs $1,499 with shipping planned for April. Best Buy will begin taking orders for the Chromebook Pixel this Friday, the 22nd.

CNBC to Purchase “Nightly Business Report”

“Nightly Business Report,” the inventive public television series that has come into financial troubles in recent years, attracted a new deep-pocketed commercial owner, the 24-hour news and business cable channel CNBC, an element of Comcast’s NBC Universal.

CNBC announced the deal this afternoon, claiming it would purchase the rights to the program, which is available in over 96 percent of U.S. homes. The transaction was made through investment firm Atalaya Capital Management for an undisclosed amount.

CNBC will immediately start producing the program, which as of today, operates from Miami with offices in Washington and New York.

The show will maintain its format and be anchored by CNBC’s Susie Gharib and Tyler Mathisen; CNBC said Ms. Gharib is under contract through the remained of the year. The show’s current host, Tom Hudson will depart along with the rest of the 18 full-time employees that produce the show.

In a recent interview, Rick Schneider, president and chief executive of Miami public station WPBT, where the program is based called the new ownership a good thing for the show and for the public television system in general. Mr. Schneider proclaimed that the deal will not only ensure the program’s long-term survival, but also a likely improvement. Schneider made this proclamation because he believes that the show has never had a prominent news-gathering organization behind it.

The transaction marks the third change of hands for “Night Business Report” since the summer of 2010, when a Mykalai Kontilai, an entrepreneur purchased it from WPBT.
Atalaya Capital Management, which brokered Mr. Kontilai’s purchase, took over the program in the fall of 2011, after a few ambitious expansion plans were achieved. In recent months, Atalaya has been searching for a purchaser of the program.

During a telephone interview, Nikhil Deogun, CNBC’s editor in chief for business news called “Nightly Business Report” “a phenomenal brand with a long tradition of producing stellar business news.” Mr. Deogun claimed that the show’s audience has minimal duplication with the CNBC audience and that the program will provide further opportunities for CNBC’s stable of quality of journalists.

PBS stopped backing “Nightly Business Report” in 2011 due to drifting ratings and the exit of the show’s sole financial underwriter, Franklin Templeton Investments. In December, the program closed the doors on its Chicago bureau and laid off a number of employees, the second substantial lay-off since 2010.

Ms. Gharib, in a phone interview, called the news “bittersweet” because the majority of the team would be departing, but also said, “Finally NBR is securing the resources we needed so badly. I feel great that CNBC sees value in our show. It’s a testament to the strength of the program.”

Lawsuit Alleges Budweiser Waters-down its Beer

Beer drinkers across the United States have accused Anheuser-Busch of watering down its Michelob, Budweiser and other beer brands, in class-action suits that seek tens of millions in damages.

The suits, filed in California, Pennsylvania and other states, claim beer drinkers have been cheated out of the alcohol content stated on the can’s labels. Michelob and Budweiser each claim of being 5 percent alcohol, while the lighter versions of Anheuser-Busch beer drinks claim to be just over 4%.

These lawsuits were filed based on information from former employees at the beer giant’s 13 domestic breweries, according to head lawyer Josh Boxer.

“The information comes from former employees who have informed us that as a matter of business practice, all of the products mentioned in the lawsuit were significantly watered down,” Boxer claimed. “Beverage companies often water-down their products as a simple cost-saving mechanism.”

The excess water is added to each beverage just before bottling; watering-down the aforementioned brands of beer reduces alcohol content by 3 to 8 percent.

In response to the allegations, Anheuser-Busch calls the claims “groundless” and said it has always complied with the United States’ labeling laws.

“Our beverages are in full compliance with labeling laws; we adhere to the highest standards in brewing our beverages, which have made our beers the best-selling in the United States and around the world.” Peter Kraemer, senior vice president of supply and brewing said in a statement.

The suit involves ten Anheuser-Busch products: Bud Ice, Budweiser, Bud Light Platinum, Michelob, Hurricane High Gravity Lager, Michelob Ultra, Busch Ice, King Cobra, Bud Light Lime and Natural Ice.

Anheuser-Busch merged with InBev in 2008 to create the world’s largest alcohol producer.

According to the suit, the company utilizes sophisticated equipment that measures alcohol content throughout the brewing process; however, after the merger, the company chose to dilute its brands of beers, the lawsuit claimed.

“Following the merger, the company accelerated the deceptive practice of watering down its beverages. It sacrificed the products once produced by Anheuser-Busch to cut costs,” said the lawsuit, which was filed in federal court in San Francisco on Friday.

Adjoining suits are currently being filed in New Jersey, Pennsylvania and other states. Each suit seeks at least $5 million in damages.

Source: Associated Press