• NASE to Participate in Senate Small Business Committee Roundtable
• New SBA Report Details High Administrative Cost of Small Group Health Insurance
• New Rulemaking Web Site Launched
• NASE Women’s Advisory Council
• Daily IRS Tax Tips Available for 2003 Filing Season

NASE to Participate in Senate Small Business Committee Roundtable

This week, the NASE will meet with Sen. Olympia Snowe (R-ME) for the first time in her new role as Chair of the Senate Committee on Small Business and Entrepreneurship. Chairwoman Snowe is meeting with the NASE and other small-business groups to discuss and prioritize the issues needing attention during the 108th Congress. The NASE will highlight the importance of micro-business friendly legislation, specifically clarification of the independent contractor status, access to affordable health coverage and tax equality.

For information on all of the NASE legislative priorities, click here.
 

New SBA Report Details High Administrative Cost of Small Group Health Insurance

The Office of Advocacy of the U.S. Small Business Administration recently released more empirical evidence in the fight for affordable health coverage for the self-employed and micro-businesses. A new report has found that small group health plans are more costly to administer than plans for larger businesses.

“This report is one more piece of evidence that small businesses need new options in health care,” said Thomas M. Sullivan, Chief Counsel for Advocacy. “Small businesses employ over half of the private workforce, yet many of their employees remain underinsured due to the high cost of health care.”

The report, “Study of the Administrative Costs and Actuarial Values of Small Health Plans” written by Rose Chu and Gordon Trapnell of Actuarial Research Corporation for the Office of Advocacy, examined 19 health care plans in two states. According to the SBA press release, the authors found that administrative expenses for insurers of small group health plans ranged from 33 to 37 percent of claims, versus five to 11 percent of claims for large companies’ self-insured plans.

The report also found that sales, underwriting, and operating expenses were all higher for the small group health plans studied versus plans designed for their big business counterparts.

“The current situation leaves small employers at a tremendous disadvantage,” Chairman of the House Small Business Committee Donald Manzullo (R-IL) said about the evidence in the study. “They either pay more to keep up with large companies' benefit packages or they provide less coverage to their employees. Either way, small business owners and their employees lose.”

The NASE urges Congress to consider more health coverage options for the self-employed and micro-businesses, such as Association Health Plans, health care tax credits and allowing the self-employed to deduct their health premiums as an ordinary business expense.

For more information and a complete copy of the report, visit the Office of Advocacy website.
 

New Rulemaking Web Site Launched
 

The Bush Administration recently launched Regulations.gov, the first step of the Office of Management and Budget’s E-Government initiative, Regulations.gov, provides access to the federal rulemaking process via a one-stop point of entry for citizens to comment on open rules from all agencies via email.

“Today technology throws open the doors of a government relationship to every American with an opinion to express,” said Office of Management and Budget Director Mitchell E. Daniels, Jr. at the launch event. “E-Rulemaking will democratize an often-closed process and enable every interested citizen to participate in shaping the rules which affect us all.”

E-Government is an integral part of the President’s Management Agenda to make it easier for citizens and businesses to interact with the government, save taxpayer dollars and streamline citizen-to-government transactions.

A copy of the President’s E-government strategy, which includes information on each of the E-Government Initiatives, is available on the OMB Web site at www.omb.gov.
 

NASE Women’s Advisory Council

Women majority-owned, privately-held firms represent abut 6.2 million businesses today, employ 9.2 million people and generate $1.15 trillion in sales To meet the unique challenges facing the growing number of women entrepreneurs today, the NASE has created the Women’s Advisory Council. We want you to be a part of this elite group!

Up to 10 women-business owners from all over the country will be chosen to participate on the NASE Women’s Advisory Council. The Council will work closely with NASE President Robert Hughes, the Board of Directors and Association staff to assist in the implementation of new benefits and programs for the NASE Women Entrepreneurship Initiative. Help us shape the future of your Association. Send in your application today!

For more information about the Women’s Advisory Council, including requirements and application, click here.
 

Daily IRS Tax Tips Available for 2003 Filing Season
 

(The following “Headliners” article has been provided by the IRS Taxpayer Education and Communication office in an effort to educate micro-business owners and make it easier to fulfill their tax obligations. For more articles, or for more information about any of the information contained in this article, please contact the IRS Small Business/ Self-Employed division.)

The Internal Revenue Service began offering a daily series of Tax Tips for the 2003 federal tax filing season on January 2.

IRS Tax Tips offer concise, useful information on topics affecting millions of taxpayers. These easy-to-read tips cover a wide range of topics, from child credits and higher education benefits to Individual Retirement Accounts and Social Security issues. Sample topics include:

• Common errors to avoid when preparing your taxes.

• Free tax help from the IRS.

• E- file helps refunds, payments.

• Charitable contributions

• Capital gains and losses.

• Don’t overlook home mortgage points.

• When are Social Security benefits taxable?

• What to do if you can’t pay your tax.

• Amended returns

More than 70 Tax Tips will be available, with a new one for each business day until the April 15 tax deadline.

The Tax Tips will be available at the IRS web site at www.irs.gov under “The Newsroom.”
 

Do any of these issues affect you? Do you want to be proactive in helping the micro-business community? Visit the NASE's Legislative Action Center and “Tell Your Small Business Story.” This will help the NASE understand - on a personal level - how key legislative issues are affecting your business and your bottom line.

For more information about any of the articles in Washington Watch, contact Maureen Petron, NASE public affairs manager, at (202) 466-2100 or mpetron@nase.org.