Posts Tagged ‘Ohio CPA’

Don’t Miss Out! Claim The Work Opportunity Tax Credit

Friday, March 11th, 2016

The IRS has finally issued guidance on how to deal with the retroactive extension of the Work Opportunity Tax Credit (WOTC) for 2015. In short, it’s an opportunity you don’t want to pass up.

How The WOTC Works For Business Owners

To claim this valuable tax credit, employers have 28 days from the date an employee was hired to certify that they fall into one of the qualifying categories. To do this, the new employee is typically asked to complete Form 8850 by the employer. The form is then filed with the IRS, while another form is filed with the Ohio Department of Jobs and Family Services. Once the new employee’s qualification is confirmed, the business may claim a credit against the income tax of a percentage of first-year wages.

Even though the credit was left to expire in 2015, some businesses continued to collect qualifying information from new hires – just in case. This turned out to be a good strategy because late last year, Congress finally voted to pass the PATH Act of 2015, which, among other things, extended the WOTC through 2019.

While some business owners may have phased out the practice of passing out Form 8850 to new employees, those who continued to qualify their new hires now have a chance to retroactively claim the WOTC credit. Employers have until June 29, 2016, to complete and file paperwork for qualifying employees to successfully claim the tax credit.

Tax Credit Available When You Hire Unemployment Recipient

The retroactive WOTC extension is not the only thing business owners should be aware of. In 2016 and until 2019, hiring long-term unemployment recipients (or an individual who has been unemployed for at least 27 consecutive weeks and who has, at some point, received unemployment benefits) will also qualify your business for the tax credit. To qualify for the WOTC under this new category, your employee(s) must have been hired between Jan. 1 and May 31, 2016.

Don’t miss out on your chance to claim the WOTC. Email Rea & Associates to learn more.

By Christopher Axene, CPA (Dublin office)

Are you looking for more tax help? These articles could help guide you along:

‘Ghost Assets’ Haunting Your Business?

What’s The Difference Between Fixed Asset Expensing And Capitalization?

How Does The IRS Treat Property Repair Expenses?

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Can You Afford To Lose Them?

Friday, March 4th, 2016

Know The Costs Associated With Replacing Team Members

Costs Associated With Replacing Team Members | Rea & Associates | Ohio CPA Firm

Did you know that it takes about 12 months before your new hire will reach their maximum potential? That’s a lot of time and, as you know, time is money. Read on to discover some other costs associated with losing a member of your team.

When you lose a member of your team, regardless of their position, you can expect their departure to impact your organization’s bottom line. That’s why it’s so important to take a proactive stance with regard to staffing and minimizing your financial burden.

Start by becoming knowledgeable about the costs associated with losing, and ultimately replacing staff. Then, develop a plan to address staffing concerns in a way that promotes a strong retention strategy and positive recruiting tactics.

Read also: Fully Staffed & Operational: How To Master Your Employee Recruitment Strategy

Read on to discover some of the more prominent monetary and emotional costs associated with losing a member of your team.

Monetary Costs

  • Productivity

o   The obvious productivity cost accrues from work missed due to the position being left vacant. A secondary productivity cost results when others have to take time out of their days to conduct interviews, onboard new hires and oversee the training process.

  • Cash Flow

o   Negative impact on the organization’s cash flow could occur, for example when you are required to pay benefits in a lump sum rather than over a period of months as originally projected.

  • Sourcing

o   While referrals often result in higher quality hires, if you have implemented a referral program, there’s likely a cost associated with it. When looking for external sourcing assistance, prices vary depending on the company and the services provided.

  • Market value

o   Market costs relate to the “negotiation” period spent making offers to the desired candidate that are comparable to offers they may be receiving elsewhere.

  • Onboarding

o   It takes about 12 months before your new team member will reach their maximum potential. Over the course of that time, a lot of time and resources will be spent getting that person up to speed.

  • Bad hire

o   Of course, if it doesn’t work out you may need to try again. And that means ongoing costs. Therefore, while it may be tempting to rush through the recruiting process, making a good hire will cost a lot less than having to relive the bad hire experience any day.

Emotional Costs

While the emotional costs associated with the loss of a team member are hard to quantify, they should not be ignored as they greatly impact others throughout your organization. You may never fully realize the scope of one’s relationships with their co-workers until they are gone, so you will never really be able to predict the impact their departure will have throughout the organization. Here are some emotional costs to consider:

  • When a member of your team leaves, especially if they spent a lot of time with your clients, their departure may impact your organization’s external relationships.
  • The urge to say goodbye may be stronger than the urge to maintain productivity. This behavior could have a ripple effect throughout the entire organization.
  • When one person leaves, depending on their personality, the entire team dynamic may change. Getting back to normal could take some time.

Are you looking for advice to help you grow your business and improve your company culture? Check out unsuitable on Rea Radio, a unique financial services and business advisory podcast that challenges old-school business practices and the traditional business suit culture.

By Mark Van Benschoten, CPA, CGMA(Dublin office) & Renee West, CHRM-CD, PHR (New Philadelphia office)

Are you looking for more ways to master your employee recruitment and retention strategy? Check out these articles.

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Can Your Business Survive An Employee Exodus?

Are Your Employees Stakeholders In Your Business?

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What Do The Recent IRS Final Regulations for Obamacare Entail?

Wednesday, February 12th, 2014

You’ve probably never received a Valentine’s Day gift from the IRS, but this year you did! On Monday, the IRS issued final regulations on Obamacare’s employer shared responsibility payment provision, otherwise known as the “pay or play” provision. Like many things the IRS announces, there’s quite a bit a fine print. This time is no exception. Check out some of the highlights of the final regulations and learn what you need to know moving forward.  (more…)

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What Should I Expect From My CPA?

Tuesday, September 24th, 2013

As a small business owner, you may have started your business because you have a passion for your particular business/industry or you may have had the desire to “take the plunge” and be your own boss. Income taxes, payroll or financial reporting were probably not anywhere on your list of top reasons to own your own business. However, these three items along with many others fall under the umbrella of accounting services, and require the training and expertise of a CPA. So, since your business needs these services, what should you expect from a CPA?  (more…)

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How Does DOMA Affect Me?

Friday, September 6th, 2013

This article discusses the changes to individual tax payers that are in a legal same-sex marriage.

Earlier this year the Supreme Court declared that section 3 of the Defense of Marriage Act (DOMA) was unconstitutional.  Section 3 of DOMA required that same-sex spouses are to be treated as unmarried for purpose of federal law.  It is now recognized that same-sex couples that were legally married in states that recognize same-sex marriages, will be treated as married for federal tax purposes, even if the state they are currently residing in does not allow same-sex marriages.  The same is true for couples married legally in a foreign jurisdiction.  This now allows for same-sex married couples to file with the status of “married filing jointly” (MFJ) or “married filing separately” (MFS). (more…)

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How Can the Ohio Incumbent Workforce Training Voucher Program Work for Your Business?

Friday, May 17th, 2013

It’s almost half way through the year. When thinking about your employees, how have you helped them develop professionally during the past few months?  Investing in your people pays off. It helps them, helps you, and helps your customers. But, it’s expensive and time consuming – training is one of those things that always seem to get pushed until tomorrow. But now the state of Ohio is taking away one of your excuses – it’s picking up part of the tab. (more…)

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