BNGIowa

Be the 'Passive Job Seeker'

I recently read an article by Dana Mattioli, a journalist for the Wall Street Journal. Her article talks about employers that are hiring (the few that are) prefer employed candidates (the increasingly fewer population) over unemployed candidates (the ever increasing population). She even states that many employers will not fill a position until they find the right passive candidate. The passive candidate is an employee that is currently working but not actively seeking a job.

The notion that unemployed candidates are being overlooked because they are unemployed is mind boggling. But if you think about it the strategy makes sense. Employed candidates (ESPECIALLY THOSE IN SR. POSITIONS) have to be the cream of the crop in their profession, hence the reason they are still working, these are the individuals who effectively managed their departments through tough, and uncertain economic times. If you compare the situation to pro sports, in most cases the MVP's, top notch athletes typically have their team vying for a championship, when their contract ends they always seem to be the most sought after player. The same is true for employed candidates.

For the unemployed, this new recruiting strategy just added another obstacle in finding a job in today's tough job market, however there still is hope. Here are a few tips:

-Prove that your recent termination was due to economic indicators not based on performance

-Have strong letters of recommendation from your previous employer, keep a strong list of references

-Be flexible with your salary requirements and job title

Check out Dana Mattioli's article: http://online.wsj.com/article/SB10001424052970203872404574257983795638374.html

It ain't easy bein' green . . .

Clients often ask if they should make a repair or spend money on a major improvement just for the tax credits involved. Buying just to get the tax credit itself is not necessarily a savings in itself.  Often times, the tax credit is only allowed for those products with the highest efficiencies (and thus a higher retail price). 

 

From adding extra insulation, to installing new windows, to harnessing the power of wind, the activities that conserve energy or produce it from clean and renewable sources enjoy new or expanded tax credits in the American Recovery and Reinvestment Act of 2009 (ARRA). Here are some of the ARRA’s more notable provisions, most of which are targeted towards individuals.

 

Energy Property Credit

 

For 2009 and 2010, the act extends and increases the credit for qualified energy efficient equipment or building components installed in the taxpayer’s principal residence. The overall credit is tripled from 10% to 30% of qualifying expenditures, subject to a lifetime cap of $1,500 (formerly $500). Caps on certain heating and cooling equipment placed in service during the year are lifted, as is the lifetime cap on energy efficient windows (formerly $200). Such energy efficient products include insulation, windows and doors, roofing, HVAC, biomass stove, water heaters, geo-thermal heat pumps, solar energy systems, small wind and certain fuel cells. Some of the products mentioned have certain standards and qualifications that must be reached in order to qualify for the credit. Expenditures formerly ineligible for the credit because they were funded by subsidized energy financing are now eligible.

 

Credits for Plug-in Electric Vehicles

 

The act introduces two new credits for electric vehicles and modifies, starting next year, the credit for plug-in electric cars. The credit is changed to between $2,500 and $7,500, depending on the vehicle’s kilowatt-hour rating, for vehicles purchased after December 31, 2009. (Plug-ins aren’t expected to be generally available in the US before then.)

The AARA also refines the definition of a qualifying plug-in vehicle: one with at least four wheels that is designed primarily for use on public streets and highways and is powered “to a significant extent” by an electric motor with a rechargeable battery of at least four kilowatt-hours’ capacity. A phaseout threshold based on the number of vehicles sold for use in the U.S. is lowered from 250,000 vehicles to 200,000, but the credit is made permanent in place of a prior-law sunset at the end of 2014.

The ARRA also introduced a credit of 10% up to a maximum of $2,500 of the cost of low-speed and two- and three-wheeled plug-in electric vehicles and another 10% credit, up to a maximum of $4,000, for costs of converting a non plug-in hybrid or conventional-fuel vehicle into a plug-in electric one.  These two credits are available for vehicles bought or converted between February 17, 2009 and December 11, 2011.

 

Renewable Energy Production Credit

 

Previously authorized for wind facilities placed in service before 2010 and for other sources before 2011, the renewable energy production credit is extended three more years (two years for marine and hydrokinetic sources).

 

Other New, Expanded or Extended Credits

 

The ARRA repeals the $4,000 cap on the 30% general business credit as it pertains to “small wind energy property”, increases the alternative fuel vehicle refueling property credit, and repeals the basis reduction rule for the general business credit as applied to certain alternative energy property financed b subsidized energy financing or private activity bonds.

 

For additional information, please talk with Brent McClure at Kiesling Associates.

When to Quit

For the last several weeks, a goldfinch has been tapping on my windows. And glass patio door. And perching on the edge of a patio chair. I think he sees the reflection of trees in the glass. For whatever reason, he wants to get through the glass. Sometimes he flies frantically and beats his body against the glass. At first is was cute, but now it is just plain annoying.

People can be like that bird. They just don't know when to quit. Especially business people. I tend to be direct and let someone know when I am not going to do business with them. I appreciate it when customers do the same with me. My pet peeve is lying. I don't think telling a salesperson that you "will get back to them..." when you really are not interested is helpful. In fact it is a lie. It may be easier for the customer, but it doesn't let the salesperson know it is time to quit.

So don't call salespeople "pushy" if you are misleading them. And don't put a fake reflection in front of a customer. We all need to know when to quit.

If you have a tip for me to help me get this bird to quit, please let me know. BTW, I don't like guns.

Working With Recruiters

Recently, our office had a Marketing Coordinator opening. Due to the current economy and massive unemployed we received 200+ resumes. Many of the candidates that were interviewed stated they were conducting their job search through staffing firms and recruiters. Using a staffing firm or a recruiter can be a beneficial resource for finding a job.

Here are a few things to consider when choosing a recruiter.

1. Find a recruiters area of expertise prior to contacting him/her. Try to match your skills with the careers he/she recruits for. Utilizing LinkedIN and other networking websites is a great place to start.

2. After sending a resume, follow up with the recruiter. This is a good opportunity to highlight important career achievements (make sure the highlights are brief and relevant to the career you are seeking).

3. PATIENCE, PATIENCE, PATIENCE. Recruiters will be in contact when they have a job that is right for you. It is definitely ok to email every other week or month to month to keep communication open.

4. Keep in mind that recruiters are only effective if they find a perfect match. If a recruiter doesn't feel you are the right fit, don't try to convince him/her that you are the perfect match. Ask him/her to keep you in mind for similar opportunities or to be considered if the ideal candidate doesn't work out.

5. Bring the recruiter into your network of contacts.

Better Late than Never

I was pretty irritated by the customer service I received from a company. I didn't think I would hear back from them at all, but I finally did. What went right? I asked for a specific remedy (please send replacement batteries) and I was persistent. Maybe the company saw my blog or maybe they were just slow to respond, but they finally did. So better late than never. I am taking them off my "do not work with" list.

Update: The remedy didn't work. The company did not send enough batteries and the ones they sent didn't make the light work. I think I will toss the lights out. At least this wasn't an really expensive purchase. Customer service matters all the time, even on the smallest purchase.

What is Customer Service?

Customer service is partly about the buying experience. But the customer service that really reveals the true colors of a company is the complaint experience. Last week, I contacted the a company about some defective solar lights. I called the 800 number and was directed by a recording to leave my call back information. The recording indicated that someone would "call me back shortly." I waited two days, no call. I used their online customer service contact process and left my information again. The form indicated someone would "email me shortly." Nope, no email. I am not a happy customer and will likely not be a repeat customer.

Most companies are realizing that they must train all the employees to provide excellent customer service. A great book that shows how this leads to success and a better world, is The Disney Way, by Bill Capodagli and Lynn Jackson. Check it out, I recommend it for anyone truely interested in your customers.

I am not done with my efforts to contact Brinkmann. Let me know if you have a good idea for my next step.

American Recovery and Reinvestment Act-Part 3 of 3

The American Recovery and Reinvestment Act of 2009 was chocked full of many tax relief items to individual taxpayers and small businesses.  While the specifics of the Act were subjected to many last minute changes in both the House and Senate, the outcome reflects Congress’ attempt to give targeted tax benefits to the middle and lower class Americans.  At the same time, it seeks to boost economic recovery by allowing small businesses certain tax breaks.  In the last of three newsletter articles, we will discuss some of the small business tax breaks enacted.

Bonus Depreciation

The 50% first-year bonus depreciation is extended through 2009.  The election to accelerate AMT and research credits in lieu of taking the bonus depreciation is also extended to qualifying property placed in service through 2009. Special rules apply to taxpayers who had already made this election for property placed in service in 2008.

Section 179 Expensing

The increase in the section 179 expensing amount to $250,000 and the increase in the phase-out threshold to $800,000 are both extended through 2009. The amounts had originally been temporarily increased by the Economic Stimulus Act of 2008.

Carryback of Small Business NOLs

Eligible small businesses are allowed to carry their 2008 net operating losses (NOLs) back for five years.  An eligible small business is one that has average gross receipts of $15 million or less (using gross receipts test from section 446(c)).

Small Business Estimated Taxes

Qualified individuals are allowed (for 2009 only) to make estimated tax payments that equal only 90% of their preceding tax year liability instead of 100%. To be a qualified individual, the taxpayer must have adjusted gross income of less than $500,000, and more than 50% of the individual’s gross income must come from a small business (a business with an average of fewer than 500 employees).

Work Opportunity Tax Credit

The act creates two new targeted groups for the work opportunity tax credit:  “disconnected youth” and unemployed veterans.  Employers who hire members of these groups during 2009 or 2010 may be eligible to take the credit.

This wraps up our final discussion of the American Recovery and Reinvestment Act of 2009 that discussed individual tax breaks and small business tax breaks.  For additional information, please talk with Brent McClure at Kiesling Associates.

The Power of A Good Resume

With an overcrowded talent pool of job seekers, employers have became very choosy on which candidates they decide to interview. As a job seeker, sometimes your only chance of interviewing for a position is to set yourself apart from other applicants. Your RESUME is the tool that will get you in the door.

Here are some tips to make your resume shine:

1. List all you have achieved over your career, this can include

    -education

    -employment

    -activities

    -honors

    -skills

    Even if you don't put everything you list on your resume, the list will help remind you of skills and talents to bring up during an INTERVIEW.

2. Choose a Format, organize your resume to showcase work experience, skills, education and talent

3. Be Honest, here are some suggestions to make your resume sound impressive:

    -Use action verbs

    -Provide details

    -Showcase your talents

4. Make it look good

    -Use readable fonts and keep font size between 10-12

    -Bold headers and keep consistent themes

    -Spell Check

    -Keep your resume short and concise no more than 2 pages

 

American Recovery and Reinvestment Act-Part 2 of 3

The American Recovery and Reinvestment Act of 2009 was chocked full of many tax relief items to individual taxpayers and small businesses.  While the specifics of the Act were subjected to many last minute changes in both the House and Senate, the outcome reflects Congress’ attempt to give targeted tax benefits to the middle and lower class Americans.  At the same time, it seeks to boost economic recovery by allowing small businesses certain tax breaks.  In the second of three blog posts, we will discuss some additional individual tax breaks that include the homebuyer’s credit, new car sales tax deductions and residential energy credits.

Homebuyer’s Credit

The act increases the maximum amount of the first-time homebuyers credit from $7,500 to $8,000 and eliminates the repayment requirement for houses purchased in 2009.  The “enhanced” credit is refundable, but for homes purchased between April 9, 2008 and December 31, 2008, it must be recaptured ratably over 15 years, or earlier if the home is sold. The stimulus act waives the recapture requirement for homes purchased after January 1, 2009, and extends the sunset of the credit from June 30, 2009 to December 1, 2009. 

 

The amount of the credit remains at 10% of the purchase price of a principal residence of a taxpayer who has not owned a U.S. principal residence in the previous three years. Recapture still applies if the taxpayer disposes of the home or no longer used it as a principal residence within three years after purchase. The waiver of recapture isn’t retroactive to before 2009, unfortunately.

New Car Sales Tax Deduction

Buyers of new cars and light trucks between February 17, 2009 and the end of the year may deduct the portion of state and local sales and excise taxes attributable to the first $49,500 of the vehicle’s purchase price. This is an above-the-line deduction and is allowed against alternative minimum tax (AMT).  The deduction will be phased out for single taxpayers with modified adjusted gross income in excess of $125,000 for the tax year ($250,000 for joint filers).  Taxpayers who elect to take the state and local sales tax deduction in lieu of deducting state and local income taxes (on Schedule A) cannot also take the new car sales tax deduction.  

Residential Energy Credits

Certain energy saving improvements to taxpayer’s principal residence are eligible for a tax credit of 30% of cost, and the lifetime cap raises from $500 to $1,500 for property put in use in 2009 and 2010. Property such as new windows and doors, insulation, and certain energy-efficient property or improvements are eligible for this credit.  Qualified solar electric property costs, qualified solar water heating property costs, qualified wind energy property costs, and qualified geothermal heat pump property costs have no limitation on the 30% cost credit.

 

Next week, our final discussion of the American Recovery and Reinvestment Act of 2009 (Part 3) will discuss the small business tax breaks.  For additional information, please  For additional information, please talk with Brent McClure at Kiesling Associates.

American Recovery and Reinvestment Act-Part 1 of 3

The American Recovery and Reinvestment Act of 2009 was chocked full of many tax relief items to individual taxpayers and small businesses.  While the specifics of the Act were subjected to many last minute changes in both the House and Senate, the outcome reflects Congress’ attempt to give targeted tax benefits to the middle and lower class Americans.  At the same time, it seeks to boost economic recovery by allowing small businesses certain tax breaks.  In the first of three blog posts, we will start with some of the tax breaks for individuals, specifically related to education and work credits.

Higher Education

 

The American opportunity tax credit is a temporary increase and expansion of the Hope scholarship credit (for tax years beginning in 2009 and 2010). It increases the maximum credit per student from $1,800 to $2,500 and extends its availability from the first two years of post secondary education to four years.  Nonrefundable under the prior law, the credit now becomes 40% refundable. 

The phase out range is increased to $80,000 to $90,000 for single filers and joint filers range is increased to $160,000 to $180,000.  Expenses for course materials, such as textbooks, are added to the definition of qualified tuition and related expenses eligible for the credit.

Section 529 Plan Expenditure Expansion

 

For 2009 and 2010, the costs of computers and related technology qualify as higher education expenses for purposes of the rules governing distributions from a 529 qualified tuition plan, as long as the beneficiary of the plan is enrolled at an eligible educational institution.  Internet access charges are also covered, as well as software, so long as it’s not for sports, games, or hobbies (unless the software is predominantly educational in nature).

 

Making Work Pay Credit

 

Intended to partially offset an employee’s portion of FICA and Medicare payroll taxes, this temporary credit is 6.2% of earned income up to a total credit of $400 for individuals and $800 for joint filers.  It is retroactive to the beginning of 2009 and is set to expire at the end of 2010.  It begins phasing out at a rate of 2% of modified adjusted gross income above $75,000 for individuals and $150,000 for joint filers. (See the March 25, 2009 Kiesling newsletter for additional information.)

 

Child Tax Credit and Other Items

 

The act extends for 2009 and 2010 the lower ($3,000) income threshold for refundability of the section 24 child credit, meaning more of it is refundable to low-income taxpayers. Other items directly benefiting less-affluent taxpayers or those in financial distress include a temporary increase in the earned income tax credit for 2009 and 2010, a one-time $250 payment to persons on fixed income not eligible for the making work pay credit and a temporary exclusion of $2,400 of unemployment benefits from taxable income in 2009. 

 

Next week in Part 2 of 3, we will discuss the homebuyers credit, new car sales tax deduction and energy credits.  For additional information, please talk with Brent McClure at Kiesling Associates.