The Revised Franchise Tax

The Revised Franchise Tax:

The Comptroller's Office has compiled a number of forms for reporting the newly revised franchise tax, as prescribed by House Bill 3 of the 79th Legislative Session and House Bill 3928 of the 80th Legislative Session. These forms are being finalized and will be available in their final form no later than March 31, 2008. The may be viewed at the following link: Reports, Forms & Procedure: http://www.window.state.tx.us/taxinfo/taxforms/05-form7.html

Form 05-176 Staff Leasing Services Company Report - http://www.window.state.tx.us/taxinfo/taxforms/05-176.pdf

As a result of the McCall amendment which was supported by TAS and strongly opposed by TAPC because of the clear differences between temporary staffing and staff leasing companies, Texas Tax Code §171.2125 now requires that a staff leasing services company provide the information contained in the above report to a client company (i.e. rates paid for assigned W-2 employees NOT 1099). TAPC’s work in the last legislative session was instrumental in the successful outcome with regard to 1099’s. We will once again, fight to undo the damage done by the McCall amendment in the upcoming session and have been laying the groundwork for that fight for the past months.

The report contains information a client company will need to calculate compensation and cost of goods sold on the client company’s franchise tax report. This form is for use only by a staff leasing services company or professional employer organization licensed under Chapter 91 of the Texas Labor Code which now INCLUDES temporary staffing firms, even though they are not licensed staff leasing entities.

A staff leasing services company (including PEO’s and temporary staffing companies) is required to provide the information in this report to a client company only if the client company requests it. For an annual franchise tax report due May 15, this information must be provided to the client company no later than February 28 or the thirtieth day from the date of request, whichever is later. For all other franchise tax reports, this information must be provided no later than the thirtieth day from the date of request. A company may provide this information to a client company by filling in this report or by using their own printed form or electronic document that is substantially similar to this form. The information may be delivered in hard copy or electronically.

Per the form, please keep the following important written factors in mind:

1.) The report of wages and cash compensation does not include amounts paid to 1099 employees however all W-2 employee wages must be reported.
2.) A company is required to provide the information in this report to a client company only if the client company requests it.

Considering the above, it appears that the good news for TAPC member companies should be that those who are heavily weighted in W-2 labor may be fortunate enough to have their clients NOT request the information - in which case - they may withhold reporting it. If a member company is heavily dependent on 1099 labor then they are exempt from reporting as per the forms instructions (a big part of the success of TAPC in the last session) which should also ease concerns for a tremendous number of our association member companies. We are continuing to work prior to the next legislative session and will continue to work during the upcoming session on this issue. We believe the distinction can still be drawn between temporary staffing companies and PEO’s/staff leasing companies and will work to get temporary staffing companies carved out of this reporting requirement.

The above information was pulled from the Comptroller's website and put together for this TAPC analysis. While we are confident in our understanding of the form and its application, we do not intend for this analysis to be relied upon as tax advice and we strongly urge members to read the forms for themselves and seek the appropriate tax advice, as well.


For more information contact:
Helene Cavanaugh, CTS
Executive Director, Texas Association of Personnel Consultants (TAPC)
13121 Louetta Road, Suite 1175
Cypress, Texas 77429
Website: www.tapc.org
Email: tapc4u@sbcglobal.net
1.888.974.2272

Exclusive discounts for TAPC Members

Save at Office Depot!
Office Depot has teamed up with TAPC to offer significant discounts on Office Supply Products, Furniture, Ink/Toner, Paper, Computer Hardware and Software, Copying and Printing, Promotional Items, and Janitorial/Breakroom Supplies. You can receive up to 45% off of Office Depot retail pricing and a 7% discount off www.officedepot.com pricing! You add 97 key items to your “Best Buy List” and Office Depot can customize pricing on additional core items specific to your business needs. The TAPC program was created exclusively for our members and can significantly improve office product ordering efficiencies while reducing costs! Go to www.tapc.org for more information and to register for this exclusive TAPC member benefit.

Deep travel discounts through Expedia.com!
Hotels.com/Expedia.com is now in partnership with TAPC and is offering their travel benefits (air, hotel, cruise, car rental, and more!) through a customized, online booking system developed for TAPC. You can save significant money by booking through Hotels.com/Expedia.com and TAPC is proud to be in partnership with them. Use the system for direct discounts and there are additional ways to reduce your travel costs when you book through the customized TAPC system. To get directly into the customized TAPC system go to: http://travel.ian.com/index.jsp?cid=218403 OR read more about it at www.tapc.org.


For more information contact:
Helene Cavanaugh, CTS
Texas Association of Personnel Consultants (TAPC)
13121 Louetta Road, Suite 1175
Cypress, Texas 77429
Website: www.tapc.org
Email: tapc4u@sbcglobal.net
1.888.974.2272

April 24, 2008 Golf Tournament

Don't miss the annual TAPC Golf Tournament on Thursday, April 24, 2008! This year promises to be the biggest and best one yet.

“Each year this tournament is one of my fun-golf events”, said Bruce Whitaker, CTS, CPC, this years’ tournament organizer. “To relax and enjoy the beautiful Texas Hill Country on a nice golf course with my industry comrades is a huge treat for me. Come on out and let’s have fun!”

Falconhead is a great venue for this event. It’s a beautiful, 7300-yard, par-72 PGA Tour Signature Series Course that offers a straightforward test of golf. Golf sponsorships are still available and money raised from the golf tournament go toward the LINC fund, TAPC’s legislative fund.

For more information about the golf tournament, go to www.tapc.org. There you will find a golf registration form you can print, complete, and mail in with your check OR go to www.acteva.com to register for the tournament online by credit card. We hope you’ll join us!

For More Information
Helene Cavanaugh, CTS
Executive Director, Texas Association of Personnel Consultants (TAPC)
1.888.974.2272 (phone)
1.866.488.7601 (fax)
13121 Louetta Road, Suite 1175
Cypress, Texas 77429
www.tapc.org

Association Health Plan News

Because so many TAPC members have reported inadequate Health Care plans the Association now has a sponsored Healthcare solution for it's members.

TAPC has teamed up with United American Insurance Company and Benefit Concepts. Through your TAPC membership, they will work with you to evaluate your current plan or help you find a plan among a list of many major carriers. The rates are significantly lower in many cases for a very comprehensive and affordable plan (there are many options).

As a TAPC member we can get you connected directly to our representative or you can meet with them at upcoming events around the state in January, 2008 and at the conference in Austin. They will work one on one with you to help you use this solution in the most beneficial way possible for you and your employees. Here are some of the highlights…

• A 60+ year company, A+ Superior rated company and a strong industry leader.
• The ability to get major medical with the company of your choice from a list of major insurance companies offered by Benefit Concepts - your current insurance carrier is likely on the list and you may get a better plan and/or better rates through the association plan. Or, you may find an insurance company from those offered that you prefer!
• A variety of coverages, plans, deductibles, premiums, etc. You can select the plan that meets your company's needs.
• The ability to lower your company's cost by utilizing a new and cutting edge feature of the program
• Voluntary products and add ons are also available including dental, life, etc.
• Extremely attentive customer service from the beginning and throughout the process and beyond

For more information and to get connected to the association health plan’s representative, call 1.888.974.2272


For more information contact:
Helene Cavanaugh, CTS
Executive Director, Texas Association of Personnel Consultants (TAPC)
1.888.974.2272 (phone)
1.866.488.7601 (fax)
13121 Louetta Road, Suite 1175
Cypress, Texas 77429
www.tapc.org

TAPC selects this year's winner of the prestigious Locke-Matthiessen award

Every year the TAPC Locke-Matthiessen award recognizes a TAPC member that has, throughout their career, conducted themself in a way that exemplifies the best qualities of professionalism and exceptional service. The recipient is selected because they have given of themselves unselfishly without seeking recognition or personal gain. The award represents the highest standard of service to our industry. It is the most prestigious award the association presents and the winners are carefully selected by a panel of previous award winners. The winner of the Locke-Matthiessen award is recognized on the last day of the TAPC Conference (Saturday) at the luncheon. Beginning this year, the TAPC will notify the winner ahead of time and will then announce to the membership. This allows the recipient's family and friends to be at the celebration and properly recognize their accomplishments and successes.

The TAPC is proud to announce that this year's winner of the Locke-Matthiessen award is Jim Hezel, CPC. Jim has served in just about every capacity on the TAPC board of directors, including President in 2005-2006. His most important accomplishments include leading the association during a change in Executive Directors, directing the activities that led to the most successful conference in all the years leading up to 2006, and strong contributions in each position he held on the board over the course of many years.

Jim joins the ranks of elite professionals, each of whom have earned the award through their actions and contributions to the association. You'll see Jim at this year's banquet at the Saturday lunch and we'll be able to celebrate this exciting accomplishment then. In the meantime, please join us in congratulating Jim Hezel, this year's Locke-Matthiessen award winner!

For more information contact:
Helene Cavanaugh, CTS
Executive Director, Texas Association of Personnel Consultants (TAPC)
1.888.974.2272 (phone)
1.866.488.7601 (fax)
13121 Louetta Road, Suite 1175
Cypress, Texas 77429
www.tapc.org

What is The Complete ROI?

One of the services I provide is working with CEO’s who are running teams that for many reasons are lacking energy, motivation and drive. As a result they are experiencing inconsistent production and less than positive attitudes. CEO’s hire to me to explore the issues and implement leadership technique to support the necessary recourse and recharge needed to return to a healthy ROI.

One critical discovery I made while running my staffing business, was that my team took their cue from me. It was up to me as CEO to mentor, motivate and lead consistently. When I was off, they were off. When I was strong, they were strong. It never failed to amaze me, as often as I denied the correlation.

I knew I was very successful at selling and growing sales. But I never really studied what it takes to successfully lead. I hired Bob Logan, an Executive Coach. Bob taught me how to be credible as a CEO. He held me accountable to look at my own leadership style and behaviors and their impact on my front and bottom lines.

What I discovered was enlightening. I was all about “the bottom line”. Every conversation I had with my team was about how we were either meeting or not meeting our sales goals. I spoiled them constantly with meals, gifts and kudos, but I was lacking in a very critical area of leadership….Core Ideals.

Core Ideals. Just like you and I, people are motivated by something other than external or material things. That other thing is called Core Ideals. Core Ideals are the internal values unique to each of us. Core Ideals are the buttons that motivate people to be happy at work, produce more and feel balanced in their personal and professional life. Some core ideals are spending time with family, being a leader, giving back, being wealthy and being more spiritual.
When a business identify's their core ideals they begin to operate with more energy, production and stamina. The concious awareness and attention to the relationship between the Return of Core Ideals and Return on Investment is The Complete ROI tm.

Whole Foods Market printed their 5 core values on the side of their paper bags...what does that tell you? Just walk into a Whole Foods Market and watch their employees faces as they do their jobs. They smile...genuinely!

The result is the front line and bottom lines of your company work in balance.The result is increased sales, decreased burnout and turnover. Once there is an investment in The Complete ROI tm sales people become more energized, creative and confident. Teams in general gain momentum and synergy. Mentors and mentees develop a cohesive consistent working relationship which leads to succession planning and employee growth.

Fran Goldstein CPC CSP


For more information contact:
Helene Cavanaugh, CTS
Executive Director, Texas Association of Personnel Consultants (TAPC)
1.888.974.2272 (phone)
1.866.488.7601 (fax)
13121 Louetta Road, Suite 1175
Cypress, Texas 77429
www.tapc.org

Ten Practical Tips For Collecting Your Fees

After twenty years of representing some of the best recruiters in Texas in recovering their placement fees, there are some key issues that you can be thinking about that will help you to make more placements and recover 100% of your earned fees.

1. Get an agreement up front, oral or written. Some recruiters prepare written agreements. Some prefer oral agreements. In any event, just make sure you make an agreement as to the fee terms.
   
   
2. Send your fee schedule and a confirming letter. Recite the percentage in your letter. This is a matter of common practice for most of you.
   
   
3. Don’t place a client signature line on the fee schedule if you’ll go forward without it. The best case is to have a fee agreement signed by the client. However, don’t put a signature line for the client to use if you don’t require them to sign before starting your work.
   
   
4. Don’t use the words “procuring cause” or “proximate cause” or “cause” in your fee schedule. The fee is earned if they engage the services of someone you refer to them.
   
   
5. Keep good notes in the file. It doesn’t matter whether they are handwritten or maintained on the computer, just keep good notes of your activities.
   
   
6. Get specific authorization from the candidate for each resume sent out. Most of you require this. Some don’t for various reasons. If you’re trying to recover your fee in a problem situation you’ll wish you had taken the time to do this.
   
   
7. Never let the parties set up their own interviews without you. Even if they are just trying to be helpful, you should be involved in the process in some way.
   
   
8. Overcome the objections and summarize that in writing. Overcoming objections from the client or the candidate is the art of being a successful recruiter.
   
   
9. Save all your documents related to the placement, including fax transmittal slips, telephone slips, resumes, long distance telephone bills, etc. The general rule is, save all documents until you get paid. In addition, courts require you to save all electronic evidence.
   
   
10. Stamp all resumes with your name and treat them as "confidential trade secrets." Doing this will remove any doubt about your involvement.

BONUS: Know the appropriate provisions of the Texas Occupations Code formerly known as the Texas Personnel Employment Services Act, both for you and against you. Get certified as soon as possible and never stop learning from the best in the business.

Best wishes for a successful 2008,

Brian Melton
TAPC Association Legal Counsel


For more information contact:
Helene Cavanaugh, CTS
Executive Director, Texas Association of Personnel Consultants (TAPC)
1.888.974.2272 (phone)
1.866.488.7601 (fax)
13121 Louetta Road, Suite 1175
Cypress, Texas 77429
www.tapc.org

Looking Ahead to a Successful 2008

By Jake Posey and Steve Koebele
TAPC External Lobbyists

Calendar year 2007 was a tremendous success for Texas Association of Personnel Consultants legislative advocacy. It’s been just 13 months since the TAPC embarked on deeper, more proactive advocacy at the Texas Capitol. The diligent work of TAPC members and advocacy team far surpassed expected outcomes. Among other elements, the TAPC engaged for meaningful legislative outcomes and obtained enhanced stakeholder status before public policy makers. The strategic objective: Achieve the most positive business and public policy environment possible for TAPC members.

Delivering Success. The 2007 TAPC “Day on the Hill” was a true success. We look forward to 100 percent participation from all TAPC members in 2009! During the legislative session, in April, the TAPC held its annual conference in Dallas, Texas. The conference allowed the TAPC legislative advocacy team to showcase two of Texas’ finest: Texas Secretary of State Roger Williams and a key member of the House Committee on Ways & Means, State Representative John Otto. Thanks, in key part, to the successful advocacy efforts of the TAPC, Representative Otto supported the TAPC and other stakeholders to restore proper taxation of 1099 “flow through” revenues. With Rep. Otto’s help, the TAPC was able to successfully amend SB 3928, restoring proper tax treatment for applicable outsourced personnel.

Informing Members. In July, the TAPC advocacy team sponsored the Margins Tax Education & Training Seminar which, thanks to our friends at Jobing.com, was broadcast free of charge to all TAPC members via the Internet. The seminar informed and educated TAPC members about the important tax changes resulting from the passage of HB 3928. A big success, the seminar was widely attended and viewed by TAPC members. It will serve as a basis for future “webinars” when updating and educating TAPC members on important and relevant legislative changes.

Continuing Advocacy. In October, the TAPC executive leadership and advocacy team met with the Texas Comptroller of Public Accounts executive staff to discuss TAPC member concerns with the implementation of new disclosure requirements applicable only to the staffing industry. This part of the law allows the clients of temporary employment firms to deduct the wages and benefits of the temporary employee assigned to the client company when calculating the client’s tax liability. However, in making such a deduction, the client may now statutorily – because of an amendment to HB 3928 that was not supported by the TAPC – rely on the temporary employment firm’s invoice or information that is provided by the firm to the client on a Form issued by the state Comptroller. Removing the above reporting requirement for temporary employment firms is a major priority for the TAPC advocacy team, looking ahead to 2009 legislative session.

Monitoring Interim Legislative Activity. Since the beginning of 2008, both the Texas House and Senate have received Interim Charges for 2008. Issued by the respective leaders of each legislative chamber, Interim Charges provide the key topics to be researched and studied by the numerous committees during the interim period between sessions (basically, calendar year 2008). While the revised franchise tax (aka, the Texas Margins Tax) is not an expressly stated focus for either chamber in 2008, please anticipate and expect that it will remain a topic of debate during the interim and the 2009 legislative session. Several entities, including the NFIB (National Federation of Independent Business), continue to push for deeper reductions in tax rates for Texas small businesses.

Minding Elections. Texas, as well as the rest of the nation, is experiencing a period of unprecedented voter turnout. This high level of turnout will likely have an effect on the current composition of the Texas Legislature. Also, several legislators decided not to run for office again. In the state House, for example, the current Speaker of the Texas House of Representatives has been under criticism from a small, but vocal group of Republican insurgents. If the balance of power in the Texas House of Representatives is altered, we will operate in a modified environment in member profile, committee assignments, and the balance of power.

Building Bipartisan Branding. With legislative races ongoing, the TAPC advocacy team is working hard to appropriately build our bipartisan brand with as many members as possible, regardless of where their loyalties are pledged. As one example and in support of that effort, the TAPC will make a limited number of sponsors available for legislative members and staff at the upcoming TAPC Conference this April. We believe this is a terrific way to reach out to members and staff in a casual and fun setting. TAPC members can enjoy an unvarnished opportunity to socialize with some of Texas leading lawmakers.

The highlights above are a sampling of activities that are directed for member benefits. We look forward to seeing you, the members, at the 2008 TAPC Conference in Austin. We always enjoy visiting with you about how we can work together in TAPC’s legislative growth and advocacy! Thank you again for your genuine support and excitement about the TAPC. As always, if you have any questions or ideas, please call Jake at (512) 646-0828 or Steve at (512) 646-7406.


For more information contact:
Helene Cavanaugh, CTS
Executive Director, Texas Association of Personnel Consultants (TAPC)
1.888.974.2272 (phone)
1.866.488.7601 (fax)
13121 Louetta Road, Suite 1175
Cypress, Texas 77429
www.tapc.org

Letter from the President - Q2

You are likely reading this newsletter a couple of weeks before our annual conference April 24th-26th at the Hyatt Regency in Austin. I am confident that you and your fellow members will find this year’s event to be the most exciting conference in the history of this Association. Hats off to each and every one of the owners and managers who recognize the value this annual event adds to the success of their people. At the time of this printing we were rapidly approaching the registration numbers of last year. With the better part of a month to go I am sure that the 2008 conference will break our all-time attendance record. Thanks in advance to all of our members and exhibitors for your help in insuring the continued success of our annual conference!

I am pleased to report to you that TAPC is on the finishing touches of completing a major overhaul of our communication and member services systems. As I have shared with you in previous letters; two years ago the board of directors of TAPC developed an extensive list of projects that we believe essential to our ongoing success. We are all eager to complete this list and to begin to enjoy the benefits of these much needed improvements.

Conference time is also kick-off time for the 2008-2009 board year. Your incoming president for this year will be Bruce Whitaker; Bruce is a past president of TAPC and is retaining most of this year’s board to head up our work committees. It has been both an honor and a pleasure to work with Bruce and the TAPC board for the last two years. I have great respect for these people who have given so freely of their time and resources. Board work can be some of the most challenging yet satisfying volunteer work there is. Thank you all for your hard work, sacrifice for the betterment of our Association and most of all your friendship and support.

By now each of you are aware that Jim Hezel is the 2008 recipient of the Locke-Matthiessen Award. Jim has been a long time and vocal promoter of TAPC and all this great Association has to offer. Please join your fellow members at the Saturday conference luncheon when we recognize Jim for the contributions that he has made to TAPC success. No one loves TAPC the way Jim does and it will be great to see him enjoy his 15 minutes of TAPC fame with family and close friends.

In closing, thank you all for your phone calls and emails over the last two years. I have thoroughly enjoyed the opportunity to lead this association and appreciate the support and feedback many of you have offered. I can confidently tell you that TAPC is on solid footing and has completed much of the work to help insure our continued success. We are very fortunate to have Helene Cavanaugh as our Executive Director; she is a hard worker that will bend over backwards to do what is right for our membership. Helene is the person who shoulders the day to day responsibility for making things happen at TAPC. Each of you should be proud of the volume of work that has been accomplished by Helene and her various work committees. Please take a minute to let her know that she is appreciated and respected by the membership of this Association.

I look forward to seeing all of you in a couple of weeks. If between now and then I can be of help, please drop me a note.

My best regards,

Rick Marshall
TAPC President

Helene Cavanaugh, CTS
Executive Director, Texas Association of Personnel Consultants (TAPC)
1.888.974.2272 (phone)
1.866.488.7601 (fax)
13121 Louetta Road, Suite 1175
Cypress, Texas 77429
www.tapc.org

There's so much to do at the TAPC Annual Conference in April!

You might want to start planning!

• If you are an owner or manager, decide if you want to attend Danny Cahill's Owner/Manager Retreat on Friday and Saturday (4/25-4/26) or attend the Direct Hire and/or Temp Breakout sessions on Friday and Saturday 4/25-4/26. Either way, you get top notch speakers and two days that will energize you for the rest of the year!
  
  
• If you or someone in your office has less than 2 years of experience, decide if they will go to Mike Lejeune's "Rookie University", a "soup to nuts" all day program on Thursday 4/24/08!
  
  
• SOLD OUT! Decide if you'll attend the Thursday night President's boat ride reception on the boat that leaves from the dock right behind the hotel on Thursday 4/24/08 (cost is $25 per person and includes food-cash bar will be provided)
  
  
• Decide if you'll attend the Friday night Awards Banquet at 6:30 on 4/25/08 in the hotel's ballroom - Danny Cahill will do an opening monologue, there's a live band, great food, and a totally new awards format! If you aren't an award nominee, come and help us celebrate top billers across Texas! Lots of surprises! If you're attending, you might want to plan your "Red Carpet Entrance" as there will be awards for "Best Dressed Table", "Most Spirited Table", "Owner with the most attendees present", "Person most happy to be here", "Best Red Carpet Entrance", and more! This is a great event with lots of visiting and networking time! You have to eat dinner anyway; why not eat at the awards banquet and enjoy the new surprises and fun!
  
  
• Plan to visit the exhibitors! We have new exhibitors this year and many returning exhibitors as well. We have surprises in store with regard to the exhibitors! Take a look at the schedule and be sure to find time to visit the exhibitors for extra fun!
  
  
• Plan to attend the "End of the Conference Margarita Party and Silent Auction". You'll have the opportunity to use complimentary auction tickets and purchase more tickets (at only $2.00 each) to "stuff the auction boxes" with tickets to win fantastic items! The auction will be set up near the onsite bookstore, massage therapists, and exhibitors so be sure to go by and check out the items before the end of the day on Saturday! Stuff those boxes! Browse in the bookstore and get a complimentary massage! And, enjoy a margarita with us on Saturday at 3:45!
  
  
• If you are an owner or manager, attend the Saturday 7:00 am Owner/Manager breakfast with Fran Goldstein. Fran will present her "ROI" program - it's early but a great way to start the day! Fran gets consistently high ratings each time she speaks in Texas!
  
  
• Think about who you want to meet or visit with at the conference! We have a "Linked UP Lounge" at this year's conference. You'll have an opportunity to get face to face with speakers, other conference attendees, and exhibitors who are at the conference. Use our "Linked UP Lounge" as a vehicle to make connections with as many people as you can. We'll help you make those connections with an organized process and vehicle to do so. And, after each visit at the "Linked UP Lounge" you'll receive a "Link" - on Saturday at the "End of the Conference Margarita Party" the person with the longest chain of "links" will receive a free 2009 conference registration!
  
  
• Plan for the breakout sessions you want to attend! There are many excellent speakers this year! There are also a variety of roundtables on Saturday afternoon you might want to consider!
  
  
• Be sure to get to the ballroom a few minutes early on Friday and Saturday for the morning general session/keynote session and for the Friday and Saturday lunches! For all of those we have some exciting openings you won't want to miss! Don't be late or you'll miss it! Then, the keynote speakers on Friday and Saturday and both day's lunch speakers are fantastic! Come early and get a good seat!

For more information about the conference and activities, go to http://www.tapc.org

Make sure you make your hotel reservations early (information is on the TAPC website) - the hotel is filling up fast!


Helene Cavanaugh, CTS
Executive Director, Texas Association of Personnel Consultants (TAPC)
1.888.974.2272 (phone)
1.866.488.7601 (fax)
13121 Louetta Road, Suite 1175
Cypress, Texas 77429
www.tapc.org