National Tax Reform

 

Technology, Millennials and Trump Will Impact Small Business Cash Flow

by Kathleen Hoffelder, content editor, NJCPA – June 19, 2017
Technology, Millennials and Trump Will Impact Small Business Cash Flow

Gene Marks, CPA, author, columnist and business owner of The Marks Group, said technology, the Trump administration, and Millennials – not in any particular order— will affect small business decisions over the next four years at NJCPA’s 2017 Annual Convention in Atlantic City.   

Marks reminded the crowd of CPAs and other financial professionals that businesses should “be prepared,” as the Boy Scout motto goes, so they are ready, willing, and able to do what is necessary in any situation that comes along. Though that may be easier said than done, the message was clear – business leaders need to always be looking ahead. “The smart business leaders are thinking about 2018 and 2019 right now,” he said.

Eye on Technology

Small businesses can benefit from keeping up with three technology trends that will impact them in the coming years, said Marks. These include: having up-to-date human resources platforms, using accounts payables automation, and having on online back-up technology.

Trump and Taxes

Despite the uncertainty regarding taxes with the Trump administration, Marks pointed out some very simple tax protocols can be followed to keep small businesses running smoothly. Revisiting the research and development (R&D) tax credit, for one, can help companies save money. Lots of companies are using this, he added. Additionally, firms need to “clean up” their receivables ledger to make sure they are paid on time.

Attracting Millennials

Socially-conscious firms and those that exhibit flexible work environments are the most attractive to getting and keeping millennial employees, according to Marks. Firms that offer perks and other amenities, such as education, considerable paid time off, and good healthcare are the most attractive to building staff that are Millennials. Healthcare, for example, is the top requested benefit for this generation, said Marks.

2017-06-15 NJCPA Trends - Gene Marks

Small businesses, in particular, he said, could benefit from improving their healthcare options to all employees, not just Millennials. A level funded plan, which is a hybrid structure that consists of both group insurance and self-insurance is an attractive route, he said. For the first $200, for example, an employee would have to pay out of pocket, but anything over that amount, the firm’s group insurance kicks in. “Firms are paying less in health insurance with a level funded healthcare plan,” he noted. Health savings accounts (HSAs) are also “hugely popular” this year, according to Marks.  

NJCPA Letter to NJ House Delegation on Tax Reform

 – November 15, 2017
NJCPA Letter to NJ House Delegation on Tax Reform

The New Jersey Society of CPAs sent the following letter to the New Jersey House Delegation regarding the House tax reform plan:


Dear Members of the New Jersey House Delegation,

On behalf of the more than 15,000 members of the New Jersey Society of Certified Public Accountants (NJCPA), I want to express our concerns about the House tax reform plan. While our members agree that the country needs tax reform that simplifies our code and cuts taxes for middle class families and businesses of all sizes, the House plan under consideration does not reform the tax code in a fiscally-responsible manner and is a blow to New Jersey residents and businesses.

Only two other states, Maryland and California, would see a greater percentage of their residents facing a tax increase under the GOP legislation than New Jersey's 27 percent.

The following elements of the House bill are of particular concern to our members:

  • Eliminating the deduction of state income and sales taxes – SALT, a provision that’s prevented double taxation since 1913, is disproportionately used by residents of New Jersey (around 40 percent of New Jersey taxpayers claim the SALT deduction) and other high-tax states that send billions of dollars more to Washington than they receive in services.
  • Capping the property tax deduction at $10,000 - The cap wouldn't cover the average property taxes in four New Jersey counties -- Essex, Bergen, Union and Morris -- which already exceed $10,000, according to the state Department of Community Affairs.
  • Limiting the deduction for mortgage interest to the first $500,000 of a home's purchase price – This limit could contribute to a loss of a home's value and a corresponding drop in property taxes, according to Fitch, one of the big three ratings agencies. This change could result in lower revenue growth prospects for local governments absent tax rate increases.

The House tax reform plan would make New Jersey less affordable and less competitive. If this legislation is approved, people and businesses will have another reason to leave New Jersey, and people thinking of living here or moving their business here will have another reason to look for an alternative.

In the interest of tax fairness, we strongly urge you to do all that you can to correct these inequities that harm New Jerseyans. Thank you for considering our views on this important issue.