Month: June 2024

Is 2024 the Year Public Housing Finally Moves on from COVID?

While much of society has moved beyond COVID, Public Housing Authorities (PHAs) continue feeling its impact.

A delay in the Emergency Rental Assistance Program (ERAP) disbursements in New York exasperated the issue, but now it seems that funds are moving and helping with accounts receivables. This appears to have a leveling off effect on eviction cases filed. However, other recent announcements from HUD may indicate the struggles aren’t completely in the rearview mirror.

According to New York’s Office of Temporary and Disability Assistance, as of January 26, 2023, the number of applications for:

ERAP applications for rent arrears, prospective rent, and utility arrears: 405,605
State-Funded ERAP for Over 80 Area Median Income (AMI): 6,872
LRAP applications: 55,009

The number of applications paid May 28, 2024:

ERAP for rent arrears and prospective rent: 306,667 applications paid in the amount of $3.49 billion
ERAP for utility arrears: 121,069 applications paid in the amount of $145 million
State-Funded ERAP for Over 80 AMI: 4,404 applications paid in the amount of $50 million
LRAP: 29,792 applications paid amounting to $298 million

(To see data by county or jurisdiction, as well as demographic information, click here.)

New York’s Statewide Landlord-Tenant Eviction Dashboard indicates that as of June 17, 2024 there were over 86,000 eviction filings for the year. Monthly data indicates a potential easing; we’ll know more when June’s month-end numbers are available.

There has also been a flurry of Federal and state legislative activity that seems to go back and forth between making things easier on PHAs and more challenging.

In December 2023, HUD proposed a rule requiring a 30-day notice period prior to starting eviction proceedings related to termination of a lease.

In April 2024, the state enacted the Good Cause Eviction Law, limiting evictions, requiring lease renewals, and capping rent increases, although municipalities outside of NYC must opt in.

In April 2024, HUD published a notice to extend its 2022 adjustment for assessing Tenant Accounts Receivable (TAR) in the Public Housing Assessment System with fiscal year ends up to December 31, 2023. However, the notice also indicates “HUD intends to return to the regular scoring methodology for HUD for PHAs with fiscal years ending in 2024.”

On May 7, 2024, HUD issued a final rule on HOTMA Housing Choice Voucher and Project Based Voucher implementation that simplify and clarify existing regulatory language and reduce the burden on PHAs.

On May 14, 2024, HUD announced the renewal of funding for the Housing Choice Voucher Program, with over $3.3 billion going to New York Housing Authorities.

On June 14, 2024, NSPIRE V Compliance was pushed back a year to October 1, 2025.

While you’re no doubt busy keeping up with all of this activity, we just want to remind you that RBT CPAs is here to support all of your accounting, audit, advisory, and tax needs. Give us a note or drop us a line any time to find out how we can be Remarkably Better Together.

Summer Season 2024: 12 Ways to Boost Your Brewery Business

Nothing screams “summer” like a cold brew or cocktail and…

Finish that sentence with the right marketing plan, events, and special touches to make the most of the 2024 summer season.

Here are some ideas to help get you started:

If you’re bringing on the summer brew – typically a lighter 4% to 5% AC for easy drinking, pale ales, and fruit beers – have a naming contest, tasting, and launch party.
Create an outdoor seating area. Take advantage of the local view or landscape or build a space with a summer theme where people want to come, relax, and have fun.
Add music and entertainment. Feature local bands or create a summer playlist. Get guests moving with line dancing lessons. Have a weekly summer movie night – think Jaws, Caddyshack, and Dirty Dancing. Invite the local ice cream or hot dog truck to stop by periodically.
Don’t forget the games – trivia, cornhole, volleyball, and more.
Summer-up your menu. Get creative with drinks and their names. Have fun with charcuterie boards and grazing tables. Incorporate local produce into your menu. Serve drinks in small coolers and snacks in mini picnic baskets.
Update your décor to make it feel like summer. Find what works with your brand. Explore flowers, scented candles, lighting, fun seating, misting fans, tabletop firepits with smores kits, and anything Hawaiian.
Support local businesses. Incorporate local business products into your menu and décor. If you’re hosting contests, offer prizes from local businesses to build goodwill and a sense of community.
Hold a fundraiser. Pick a local cause or, even better, a couple of different ones.
Invite the dog! Whether you make it an everyday thing or a special event, allow paying customers to bring their furry friend and treat them to something on a dog-friendly menu item.
Create a club, with free tastings, a birthday drink, and even a personalized glass that can be used for discounted drinks.
Host a tour, pub crawl, brew festival, or scavenger hunt. Join together with other local brewers and restaurants to create an “experience” or “event.”
Put your feelers out for local farmers markets, community tag sales, county fairs, and other summer events that may need sponsors and vendors.

As you focus on making the most of the upcoming busy season, remember, RBT CPAs can help lighten your load by handling all of your accounting, audit, advising, and tax needs. Find out how we can be Remarkably Better Together. Give us a call or drop us a line.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial information.

Act Now to Avoid Tax Surprises Later

How did your veterinary practice fair this past tax season? Did you owe more than expected? Were you surprised? At RBT CPAs, we work with clients to develop tax planning strategies to help you avoid surprises and potentially keep more of your hard-earned money.

We start by learning about you, your business, and your short- and long-term business goals. Your strategy for taxes can differ and change depending on a variety of factors, like whether you have had a few profitable years in a row; whether you rent or own the building where your practice is based out of; whether you plan on expanding services requiring investments in equipment and more employees; and more.

Next, we walk you through opportunities to reduce tax liabilities. For example:

Do you need new (or used) office furniture or equipment? You may qualify for Section 179 deductions for the cost of computers and software, furniture, equipment, and certain vehicles. If you put any eligible purchases into service before the end of this year, there’s an additional 60% bonus deduction. The bonus deduction drops to 40% in 2025 and 20% in 2026 before expiring come 2027. So, even if you were thinking of waiting another year to make certain purchases, the higher bonus deduction may be worth accelerating your timeline.
Do you own the building that your practice operates from? Are you considering facility updates or an expansion? If you do you’ll want to know about the beneficial tax treatment of energy-efficient upgrades. Security, HVAC, and fire protection systems, as well as structural improvements, may qualify for deductions.
Do you and/or your staff attend industry conferences or events? Travel, hotel, and the cost of the event may serve as deductions – just be sure to keep good records and receipts.
Do you host off-site meetings and events for staff? If you use your home – primary or vacation – as the meeting location, you can charge your business “reasonable rent” without having to claim it as income. This only applies if the maximum number of rental days is 14 or less; although, they don’t have to occur concurrently.
Are there benefit plans you should consider offering to enhance your ability to attract and retain employees and get a tax deduction for contributions?
Are you taking advantage of an accountable plan for employee business expenses so you and your employee save on withholding and FICA taxes?
What are the pros and cons of changing your business structure (for example, from a single-member LLC to an S Corp)? Is now the right time?

Finally, we equip you with a roadmap to help you make the most of the time left in 2024 to make smart tax moves. Interested in learning more? Schedule a tax review and planning session today by emailing slhowell@rbtcpas.com or going to our webpage to request a meeting. We would love to have the opportunity to show you how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Protecting Union Members’ Data: What You Should Know and Do

With growing frequency, cybercriminals are targeting unions, prompting a greater need for cybersecurity awareness, training, and protocols at all levels.

Last year, the Boston Pipefitters Union saw $6.4 million stolen from its health fund. In November, the Allied Pilots Association was the victim of a ransomware attack. Early this year, an SEIU local in California was breached resulting in the possible exposure of member Social Security numbers, home addresses, birth dates, and more. As unions play a vital role in fighting for members’ rights, like all organizations, they must also proactively put plans in place to protect union systems, funds, and sensitive information about members.

Why? A cyber attack can have far-reaching implications, ranging from financial loss, disruption of operations, recovery costs, and legal fees to damage to an organization’s reputation and loss of member trust. Cyber attacks are also easy to facilitate, with dubious links in emails that look like they come from legitimate sources or thumb drives embedded with a virus. Unfortunately, simple deceptions can wreak havoc on systems and organizations.

While a common misunderstanding is that cyber criminals focus on only the largest of organizations, it’s important to recognize a certain contingency of cyber criminals focus on smaller operations or low-hanging fruit that provides easier access to data and ransom fees. (That’s why school districts and local municipalities are frequent targets. With outdated infrastructure and limited resources, it’s easier for cyber criminals to breach their systems, causing chaos by locking systems for days or weeks and holding sensitive information for ransom.)

With the average cost of a cyber breach estimated to be over $4 million in 2023, organizations of all types and sizes – including unions and locals – need to make cybersecurity an ongoing priority. If your local handles members’ personally identifiable information like birth date, Social Security number, home address, phone number, and email address – not to mention any financial information, it’s critical to take steps to proactively protect this data while also having a plan so you know what to do should a breach occur.

A cyber security plan can include clearly defined roles and responsibilities; annual risk assessments and audits (including audits of third-party service providers); data encryption and controls; a response plan; periodic training and communications; and more. By having one in place, you can reassure members that the union is always looking out for their best interests.

A good place to start is with your union’s parent organization to see what policies, protocols, and tools are available to protect members’ information and union systems. In addition, the U.S. Cybersecurity & Infrastructure Security Agency (CISA) provides valuable free resources and tools, including the Shields Up program which is designed to help organizations prepare for, respond to, and mitigate the impact of a cyberattack.

As you explore what your local can and should be doing to protect member information, please remember RBT CPA professionals are available to provide accounting, tax, audit, and advisory services. To find out how we can be Remarkably Better Together, give us a call.

RBT CPAs is proud to say 100% of its work is prepared in America. We do not offshore work, so you always know who is handling your organization’s financial information.

What Every Manufacturer Should Know About the Noncompete Agreement Ban

The FTC’s Noncompete Ban Is NOT Moving Forward September 4

***** UPDATE TO THIS ARTICLE: Earlier this week, a Texas federal court set aside the Federal Trade Commission’s (FTC’s) proposed ban on noncompete agreements, scheduled to take effect nationwide in just over two weeks. Thanks to the court’s actions, the ban will NOT take effect on September 4. Employers nationwide can maintain noncompete agreements as per state laws.

In 2023, the FTC proposed the ban and this past April a Final Rule was issued enforcing the ban effective September 4. A number of legal challenges were filed and one in particular – Ryan LLC v. Federal Trade Commission in the Northern District of Texas – left room for a nationwide injunction on the ban.

Tuesday, Judge Ada Brown struck down the nationwide ban for two reasons: the ban exceeds the FTC’s statutory authority and violates the Administrative Procedure Act.

While there may be appeals in the future, employers can continue to protect key relationships and confidential information with noncompete agreements. Just be sure they comply with applicable state laws and focus on critical employees, as the FTC has indicated it may pursue targeted investigations.

If you have any questions about noncompete agreements or any other aspect of employment, professionals at RBT CPAs’ affiliate – Visions Human Resource Services – are available to help. Email Jgiannetta@VisionsHR.com or call 845-567-3978.

Please note: Visions Human Resource Services is an advisory firm, not a law firm, and the information above should not be construed as legal advice. Should you need legal advice, it is always in your best interest to consult with your legal counsel.

On April 23, the FTC issued a final rule banning noncompete agreements nationwide.

The final rule is effective September 4, 2024. While a number of lawsuits are underway challenging the rule (including one brought forward by the U.S. Chamber of Commerce), businesses – especially manufacturers – may want to consider the implications and what to do next.

Generally, noncompetes prohibit, penalize, or prevent workers from seeking or accepting work with another employer or opening their own business. The FTC’s final rule will make noncompetes unenforceable for the majority of workers, which include employees, independent contractors, interns, volunteers, apprentices, and sole proprietors.

Under the final rule, existing noncompete agreements for senior executives – defined as those in policy-making positions earning more than $151,164 – can remain in force, but no new ones are allowed after September 4. For all others, employers will need to notify workers covered by a noncompete agreement that the agreement will not be enforced. Notification must be in writing and delivered via email, text, or mail at the worker’s last known address (delivery by hand is also allowed). There’s sample language for the notice on the FTC noncompete rule webpage (scroll down to “Model Notices”).

There appear to be different schools of thought regarding how much effort employers should put into compliance right now, as we don’t know what may happen as a result of the many lawsuits challenging the rule. In light of the intellectual property, business strategy, industrial processes, and sales information that are fundamental to a manufacturing business’ competitive advantage and success, business leaders may want to consult legal counsel and engage Human Resources to begin defining a path forward sooner rather than later.

Key considerations include:

Do your contracts for employees and contractors include a noncompete clause? What about other provisions that help protect proprietary information? How will contracts need to change?
Do you currently have non-disclosure agreements (NDAs), non-solicitation agreements, intellectual property agreements, and confidentiality policies? Do you need to enhance or strengthen them?
Do you need to add, delete, or update employment policies and communicate changes to employees? Will new employee orientations and onboarding need to change as well?
Do you need a proactive retention strategy for key employees who may be enticed by competitors to jump ship? Can updated professional development, career planning, and rewards programs help keep potential poachers at bay?
Should you consider changing work processes and IT protocols to limit the number of people with access to strategy, intellectual property, sales, and other proprietary information?
Is there a need to make IT changes to help keep important data and files from leaving with employees?

As you navigate the potential implications of the final rule and what you must do to both comply and protect your business, you can count on RBT CPAs for all of your business advisory, accounting, audit, and tax needs. What’s more, our Visions Human Resource Services affiliate professionals are available to help you with employee handbook revisions, HR policies, total rewards analysis, and more. We hope to have the opportunity to show you how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Please note: RBT CPAs is an accounting, audit, tax, and business advisory firm – not a law firm. The content in this article is for informational purposes only and should not be construed as advice. Should you need legal advice, we strongly encourage you to contact your legal counsel.

Where and How to Get Started with AI in Construction

Everywhere you look, there’s an article discussing how artificial intelligence (AI) is transforming construction.

Once reserved for the largest commercial construction businesses, AI solutions are evolving and becoming more accessible to businesses of all sizes. Here’s an overview and some tips on how to get started using AI in your business.

AI is software that analyzes a variety of data to help you achieve better results. AI can provide you with insights and information to make strategic decisions, make work easier through automation, and identify potential issues before they escalate. AI systems are impartial, promoting accuracy while minimizing bias, and ultimately boosting productivity and performance.

So, how can you use AI in your construction business?

Before construction.

There are AI software solutions to help with everything from bidding, contracts, regulations, building codes, and permits to project planning, supply chain, and more. Use them to operate more effectively and enhance the value you offer potential clients.

During construction.

Robotic bricklayers, layout, welding, autonomous equipment, and drones do certain jobs so staff is freed up to focus on other work. Using data from past projects, workflow related to activities like rebar placement can be simplified and maximized for productivity. Sensors and cameras can alert crews to safety hazards, detect defects and weaknesses, and boost quality. Predictive maintenance extends the longevity of equipment.

Backroom operations.

Think of any business activity and you can likely find an AI solution to do it faster and more accurately. For example, AI integrated with an ERP may help reduce days sales outstanding; find and fix billing errors; and detect anomalies and potential fraud. There are AI systems that evaluate market opportunities, help strengthen sales, improve customer service, and streamline project management.

Staffing

Yes, this is part of backroom operations but considering today’s challenges finding experienced talent, it warrants its own discussion. AI solutions can boost the effectiveness of your recruiting and hiring process. Perhaps equally important is that AI solutions allow you to use the staff you do have effectively. Instead of paying someone for simple repetitive tasks on a work site or in an office (i.e., data entry, order tracking, invoicing, and more), AI can automate and free up staff (or your budget for staff) to focus where they can add the most value.

With one study predicting up to 30% of construction work will be automated by 2030, it’s the right time to explore opportunities for your business.

Start by thinking about your biggest “pain points.” What is constantly causing you angst, creating problems, or diverting attention and resources from more important tasks? What is costing your business money, time, employees, suppliers, and/or customers? What are customers or potential customers asking for that you just can’t deliver…yet?

Ask your team for input and to validate the top two to three pain points. Then, research AI systems that can help. Industry organizations, peers, people you work within the business (including suppliers and insurance agents, for example), and, of course, the Internet can help you identify potential solutions.

Don’t settle on the first AI system you find. There is a growing list of options and features available. You may want to explore three to five AI systems and compare their features and costs. Once you make a decision to move forward, be ready for some growing pains including testing and training. After launching, monitor and make adjustments as needed.

As you focus on what’s best for your business’s future, let RBT CPAs focus on you. Our business advisory, accounting, audit, and tax professionals are available to help support and drive success. We look forward to showing you how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Registered Apprenticeship Programs (RAP) for Teachers Are Making the Grade

In 2021, New York became one of the first states to approve a Registered Apprenticeship Program (RAP) for K-12 teachers. Three years later, RAPs are growing in number, with a variety of support and resources available to get programs off the ground and reap their proven results.

According to the National Center for Education Statistics, 86% of public schools reported difficulties hiring teachers at the start of the 2023-2024 school year; however, the percentage of schools that felt understaffed as compared to a year earlier had dropped from 52% to 45% (which is still a high percentage). So, while the teacher recruitment crunch may be easing ever-so-slightly for now, the need for a skilled talent pipeline remains.

According to the New York State Educator Workforce Development HUB – a technical assistance program funded by a U.S. DOL Apprenticeship Building America grant, 33% of New York teachers are eligible to retire in the next five years; 30% to 50% of new teachers leave the profession within the first five years; and there has been a 53% decline in teacher preparation program enrollment within the last decade.

To help turn the tide, the HUB provides technical and networking support to help districts/BOCES build and launch RAPs. In general, RAPs may provide teacher apprentices a living wage, tuition reimbursement, and other support during a one- to two-year residency that provides on-the-job training with a district teacher (who may get paid a little extra for their mentorship work). Ultimately, this has been proven to strengthen a diverse talent pipeline, increase teacher retention, and save time and money on recruiting and hiring.

RAPs are proving themselves to be so effective for teaching talent that in 2023, the DOL approved the nation’s first K-12 Principal Apprenticeship Program (PAP). A PAP can help districts build a future leadership pipeline at a time when there’s concern about increasing turnover, which has been linked to staff retention and student outcomes. The first approved PAP’s participants will work for a year as an assistant principal while preparing to earn their license. What’s more, annual DOL funding per apprentice may be available annually.

As apprenticeship programs expand across professions, the Federal government is looking to clarify its role, along with state roles. At the end of last year, the U.S. Department of Labor proposed a rule to modernize registered apprenticeships by strengthening labor standards, worker protections, and the promotion of apprenticeship pathways. No doubt, more is to come.

If you are interested in learning more, starting a RAP, or exploring funding, the following are some resources that may be of value:

The New York State Educator Workforce Development HUB offers free resources to all stakeholders, including an ROI calculator, a guidance workbook, and a list of approved residencies.
Perkins V funds, offered via the Office of Postsecondary Access, Support, and Success of the State Education Department, can be used to develop and support registered apprenticeship programs. The application period is open through June 28.
ApprenticeshipUSA, a U.S. government website, has information about creating and registering a teacher apprenticeship program, youth apprenticeship programs, and more.
National Center for Grow Your Own, a non-profit that assists state and local education agencies with “Grow Your Own” programs, including apprenticeships.

As you work to address the many factors that impact your ability to deliver on your organization’s mission, you can count on RBT CPAs to work for you. RBT CPA professionals are available to provide accounting, tax, audit, and advisory services. To find out how we can be Remarkably Better Together, give us a call.

RBT CPAs is proud to say 100% of its work is prepared in America. We do not offshore work, so you always know who is handling your organization’s financial information.