Highlights from the October 20, 2021 webinar by Michael B Ross, Principal, HBK High Performance

• The importance of mindset: It is the difference between being successful and unsuccessful, particularly in how people handle crises and systematic change. We have seen both crises and systematic change during the pandemic; still, many business owners have reported that 2020 and 2021 have been their highest revenue-producing years to date. Is it possible that mindset’s a key contributor?
• That growth has created a need for organizations to find quality employees, but they are having trouble attracting good employees. Many employees want to work from home. Research shows that remote workers are more productive, enjoy a better quality of life, and are more engaged.
• Mindset means we have a set way of thinking. Ninety-five percent of our lives are comprised of subconscious streaming habits. Once we form habits we want to remain in them as much as possible. Change is difficult because we are changing that mindset. But those who adapt to change are the most successful in life and business.
• The most important question about remote working is, “How do I build a strong culture with a remote workforce?” It requires a high level of engagement to build a strong culture.

Five benefits of a remote workforce:

1. Increased productivity: Stanford research with remote and traditional workforces revealed remote workforces were more productive, workers took fewer sick days, and their organizations had 50 percent less employee attrition.
2. Reduction in costs: The same Stanford study showed savings of $2,000 per employee in office costs. Think about how you can leverage your office space, including subleasing.
3. More competitive in their markets: Attracting and retaining talent is key to being competitive. Thirty-five percent of surveyed workers say they would change jobs to have the option of working remotely at least part time.
4. Not limited by geography: You can recruit all over the country—or the world. Consider the scale of talent available around the globe.
5. Work-life balance: employees have more time for both their work and their life events. Employees develop greater discipline when they work from home; they have to be more organized. Work-life balance is one of key factors in employees remaining with their organizations.

Three practical ways to build a strong culture with a remote workforce:

1. Be intentional with your purpose, vision, and expectations. You have to operate from a purpose and with a purpose. Organizations must set expectations for remote workers:
• Have set work hours for remote workers, just as you would if they were coming into the office.
• Communicate the results you expect.
• Measure results with accountability meetings.
• Set expectations for response time.
• Set expectations for each project for time, scope, and budget.
• Always point back to showing how expectations fulfill your purpose and vision.
2. Maintain engagement. Make a minimum of three touches a week. Have all-team meetings at least once a month. Talk about the work you’re doing and the impact it is having. Give constructive feedback as well as positive feedback. Build teams and facilitate as much group work as possible.
3. Have a trial period. Test out remote working over a period of three to six months. Don’t let your current mindset keep you from trying.

Are you adapting? A remote workforce can be positive. Building a strong culture with remote workers is possible if you have the right mindset.

High Performance is HBK’s group of leadership consultants and we’re here to help. We’d love to hear your story discuss how we can solve your leadership and culture challenges. Contact us today to schedule a 30-minute, no-obligation consultation.

Be intentional. Be exceptional. And lead!

Contact us for more information.

Highlights from the July 27 HBK webinar featuring Ben DiGirolamo, CPA, JD, HBK Principal; Donald Trummer, CPA, HBK Senior Manager and Tax Specialist; Amy Reynallt, MBA, Manager, HBK Manufacturing Solutions

Employee Retention Credits

The Employee Retention Credits (ERC) relief program has been updated twice since it was first introduced as part for the 2020 CARES Act, first by the Consolidated Appropriations Act, then under the American Rescue Plan.

• The ERC is available to employers for most of 2020 and all of 2021. It can be very valuable to your business.
• Eligibility: Qualified organizations include businesses or tax-exempt organizations that fully or partially suspended operations during any calendar quarter in 2020 or 2021 due to orders from a government authority limiting commerce, travel, or group meetings due to COVID-19, or experienced a decline in gross receipts during the calendar quarter compared to same quarter in 2019. The IRS has issued FAQs on what it means to be fully or partially shutdown.
• For 2020, gross receipts must be 50 percent less than in the comparable 2019 quarter and the benefit continues until a return to 80 percent of those receipts. For 2021, gross receipts must only be less than 80 percent of what they were in the 2019 quarter, and credits continue until receipts recover to 80 percent.
• The declines do not have to be COVID-related, just a qualifying reduction.
• The 2021 trailing test works to allow your qualification to be based on a prior quarter. If you qualify for one quarter you’re generally going to qualify for at least two.

Qualified Wages

For 2020, the ERC equals half of qualified wages, capped at $10,000 per employee. For 2021 it’s 70% of wages up to $10,000 per employee per quarter—up to $28,000 for the year. Wages paid during the entire quarter qualify.

• For businesses qualifying due to government shutdown, qualifying wages are those wages paid during the period of the shutdown.
• For 2020, if more than 100 full-time-equivalent (FTE) employees in 2019, only wages paid to those not working qualify. For 2021, if over 500 FTE employees, only wages paid to those not working qualify.

PPP & ERC

• Recipients of Paycheck Protection Program (PPP) loans can now also take advantage of the ERC.
• Organizations with 100 to 500 employees are no longer restricted to wages only of employees not working, but all employees.
• Wages and healthcare costs substantiating ERC can now be used to support PPP loan forgiveness.
• Employers can elect not to include wage and healthcare cost in computing ERC in order to maximize PPP forgiveness. You can satisfy your forgiveness requirements then maximize ERC. And if portions of your PPP loan are not forgiven, you can apply related wages to recalculate ERC.
• For the vast majority of applicants, PPP was the better option over ERC. But that changes due to the Consolidated Appropriations Act. Now you can maximize PPP expenses and free up wages over your loan amount to use with ERC.

Claiming the credit

You can amend your 2020 payroll tax returns to claim ERC or additional ERC for up to the next five years.

• For 2021, you can reduce your payroll tax deposits by the anticipated credit or wait to claim the credit.
• By administering the credit through payroll, Congress gave organizations the opportunity to first reduce the anticipated payroll tax deposit and if the anticipated credit exceeds the deposit file for a refund.

Common Issues

How to determine to file for businesses separately or aggregated? Might tie businesses together to maximize ERC, given qualifying via the single employer test. Must ensure there is no double dipping on wages and how the qualification rules apply for aggregating businesses.

• Must use the same accounting method used for your tax returns.
• Can include employer and spouse in qualifying wages but not other family members.
• Maximize non-payroll expenses and non-qualifying ERC payroll when applying for PPP loan forgiveness.
• The quickest way to get an ERC refund is by reducing payroll tax deposits.
• The ERC interacts with other tax credits. You can’t double dip on wages. Generally the ERC will deliver a better benefit dollar for dollar.

PPP

Round 1 forgiveness: Borrowers have 10 months from the end of their 24-week covered periods to submit their applications or will have to being interest and principal payments to their lenders. If your deadline is passed, you can still apply for forgiveness for the unexpired part of the loan.

• Some lenders have imposed earlier deadlines, so follow the guidance from your PPP lender. Some lenders are also re-testing originally provided loans to ensure forgiveness only on the amount of loan that accommodates the rules.
• As of July 9, the Small Business Administration is no longer requiring Loan Necessity Question Forms.
• Round 2 is governed by generally the same rules as round 1. There are some minor differences in wage calculation, and the cap for owner compensation in terms of a different time period for reference than round 1. Additional eligibility documentation is also required.
• If you’re coordinating round 2 with your ERC, it may be beneficial to at least wait until end of the 24 week period to apply wages to the program most beneficial to you.

Updates for other relief programs:

• Economic Injury Disaster Loan – Proof of hazard insurance is being requested or of the approval of the loans by the board of directors. Emails are also being sent regarding targeted EIDL grants, and some regarding loan increases of up to $500,000.
• The Restaurant Revitalization Fund is closed. More than 100,000 grants were issued and $29 billion in funding was awarded. There was controversy over the program as intended grants were rescinded. Watch for updates or new legislation.
• Shuttered Venues Operators Grant – Nearly 9000 grants totaling 6.8 billion were awarded. The SBA has been reaching out to organizations suffering 70 percent or more revenue loss in their most recent calendar quarter about supplemental grants. Program has awarded more than 99 percent of its funds.
• Families First Coronavirus Response Act COVID-19 Sick Leave – Expands eligible leave time to include COVID-19 diagnostic testing and receiving or recovering from the vaccine as of April 1, 2021.

Recording and presentation materials available for:

ARPA Individual, Business and Payroll Provisions Webinar

The webinar, ARPA Individual, Business and Payroll Provisions Webinar is now available to view on-demand, so you can review key topics covered in the session.

Looking for more information?

• Download the presentation materials.
• Read our latest blog post, American Rescue Plan Signed into Law
• Read more about PPP loans, Still Interested in a PPP Loan? Act Now!
• Request a consultation with someone from the team

What is being referred to as the “new normal” should really be considered an interruption in our usual work environment. So how do we get our business back on track after this interruption? What skills will you and your team need get your dealership performing at pre-pandemic, and improved, levels? Are you utilizing all the marketing tools at your disposal to promote your dealership? Tim Parsons will be the host of this Third Thursday Webinar.

Download the materials.

Join us as we discuss the Current Status of the Coronavirus Crisis and it’s impact on dealers today and in the weeks and months to come. We will work through steps you should consider that you, not only survive, but thrive in these unusual times.

Download materials.

Join Dealership Solutions as Tim Parsons presents The ABC’s of Training.

• How to conduct effective training

• Tips for training millennials

Download materials.

This webinar will assist you in creating an organizational culture, increase employee engagement, and raise productivity. Our leadership development program will challenge and enhance your leadership skills, attitudes and outlook. Featuring Dealership Solutions Manager and training expert Tim Parsons.

Download materials.

HBK’s SBA Loan Specialist Amy Reynallt provides dealers an update on the PPP Loan Program. Watch now to learn more about the latest guidance on applications and qualifications.

Download Materialss

On December 27, 2020, the Consolidated Appropriations Act 2021 (CAA), also referred to as the Economic Aid Act or Omnibus Bill, was signed into law, providing new COVID 19 relief options for individuals and small businesses, including a second round of Paycheck Protection Program (PPP) loans and an extended and expanded Employee Retention Credit. Interested borrowers have been awaiting guidance, which the SBA and Department of the Treasury have begun to release. Join Amy Reynallt, MBA and Ben DiGirolamo, CPA, JD as they discuss the new guidance which includes:

• Interim Final Rules on the First and Second PPP Draws
• First Draw and Second Draw PPP Loan Applications
• Updates on the Employee Retention Credit

  Download the Materials.

Congressional leaders have agreed on a new stimulus package that includes a second round of Paycheck Protection Program loans for certain borrowers and tax relief for small and mid-size companies. President Trump has now signed the bill into law. HBK’s Ben DiGirolamo, CPA, JD, and Amy Reynallt, MBA, discuss the details, help you determine which provisions affect you and your business, and what steps you should take next to benefit from the new stimulus. Discussion topics include:

• Who is eligible for a second draw PPP loan
• Changes to the original PPP forgiveness process that may affect your forgiveness application
• The reversal to the IRS’s notices on tax deductibility of expenses paid for with the PPP loans
• Updates on the Economic Injury Disaster Loan program
• Support for more types of businesses including tax breaks and changes you should know
• Stimulus payments to individuals and extended unemployment benefits

  Download the presentation materials.