In this episode of Mission to Grow, host Mike Vannoy and guest Shannon Scott, CEO of HR Logics, delve into the often-overlooked world of employer tax credits. They explore the Work Opportunity Tax Credit (WOTC), Research and Development (R&D) credits, and how small and midsize businesses can benefit. Shannon discusses eligibility, the application process, and the advantages of using consulting firms to manage these credits. If you're a small business owner, this episode is packed with valuable insights to help you potentially save thousands of dollars through tax incentives.

Takeaways:

• There are a plethora of tax credits available to small business owners that aren’t being utilized simply because they aren’t known about. Identifying and educating yourself on these credits can save your business thousands of dollars a year.
• Tax credits are typically aimed at helping groups that face higher barriers of entry to getting hired. Some of these demographics include: veterans, felons, individuals on government assistance programs, and disabled people.
• WOTC is a valuable incentive of up to $9,600 for hiring from specific demographic groups, requiring a minimum of 120 hours of work to qualify. Employers should ensure timely submission of information to state WOTC offices for certification.
• While many employers assume they aren’t hiring from these demographics, over 30% of new hires in America qualify for a credit. Additionally, some credits allow qualification based on an employee's household, further increasing the eligible population.
• The utilization of an outsourced group for benefits processing can shield employers from potential risks by providing only essential qualification information without disclosing specific benefit details.
• As WOTC can only be used against a tax liability, you may be left with extra credit at the end of the year. Credits can be carried forward for up to 20 years, allowing you to bank credits for future years.
• Small businesses, not just large employers, can qualify for the research and development credit by improving processes or manufacturing. Chefs who develop new recipes are one example of small businesses being eligible.

Quote of the Show:

• “Just because you're a small business doesn't mean you can't take advantage of the same things that you see these larger corporations are taking advantage of.” - Shannon Scott

Links:

• LinkedIn: https://www.linkedin.com/in/shannonscottceo/
• Company Website: https://www.hrlogics.com/

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006

While COBRA has fairly straight forward effects, the qualifications and details are quite nuanced. Joining the show to help small business owners stay compliant with COBRA is Operations Manager, Benefits at Asure, Heather James!

Heather joins Mike Vannoy to dive into the history and regulations of COBRA. Heather explains the different qualifying events, the regulations for notifying an employee, and who COBRA applies to.

Takeaways:

• While many people think COBRA is insurance, in reality it is a law that requires employees still have access to group plans when they go through a qualifying event like leaving the company.
• COBRA requires that the employee must pay for the remaining benefits in full. The employee must pay both their previous contribution, and the previous employer's contribution. In some cases there is also a 2% administration fee.
• The DOL has strict regulations about notifying an employee about their COBRA eligibility, even down to font size and bolding. When notifying an employee, make sure you comply with the rules and regulations.
• As an employee, when you receive your packet from your employer, you have 60 days to make a decision as to your course of action. COBRA doesn’t kick in until your decision, but is applied retroactively to the date you lost your active policy.
• While many people think COBRA only applies to terminations, there are a few other qualifying events. Moving from full time to part time qualifies you as you are losing access to your healthcare benefits despite still working at the company.
• COBRA applies beyond just the employee and to their dependents. A divorced spouse or a dependent who turns 26 and ages out of coverage are both types of qualifying events for COBRA.
• A common mistake employers make is not notifying their employees properly and through the correct channels. Every qualifying event needs to be notified for, and all notifications must happen through the US mail.

Quote of the Show:

• “COBRA is not the actual insurance, COBRA is the continuation of those rich group plans that you had.” - Heather James

Links:

• LinkedIn: https://www.linkedin.com/in/heather-james-4a727b16/
• Company Website: https://www.asuresoftware.com/
• DOL Website: https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra#employers

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006

A recent ruling from the DOL has moved to raise the FLSA overtime salary threshold to $58,656 by 2025, and is poised to affect around 4 million employees. Here to help you prepare for the upcoming change is VP HR Compliance and Learning and Development at Asure Software, Mary Simmons!

Mary joins Host Mike Vannoy to discuss the nuances of the new threshold, and how employers can best prepare for the change. Mary shares ways you can communicate the change with employees, the challenges of transitioning employees to hourly, and the importance of a strong overtime policy.

Takeaways:

• The Department Of Labor recently moved to raise the FLSA salary threshold for exempt workers. The previous threshold was $35,568 a year, on July 1st 2024 it will increase to $43,888, and on January 1st 2025 it increases again to $58,656 per year.
• This higher threshold is estimated to result in a total $1.5B increase for salaries for employees, and employers need to be ready. While there are still a few months before the change, employers need to prepare for the transition now.
• This new increase will cause situations where existing employees are now paid the same as new employees. To help the disparity, increase existing employees salaries if possible, or offer them additional benefits like increased vacation time.
• While some employees will be getting a salary increase, some will be made hourly employees instead. While this can help your business, communication is key. Make your employees feel like a part of the decision and don’t make false promises.
• When you transfer employees from exempt to non-exempt, it’s crucial to clearly communicate the new rules. Write down the new rules and overtime guidelines for hourly employees, and ensure employees read and sign the new rules.
• As you transition employees to hourly, it’s important to consider what guidelines you need to follow. While extra hours outside of a regular schedule counts, something as simple as asking an employee to respond to an email after hours also counts.

Quote of the Show:

• “The way you communicate things to your employees is going to significantly change how they accept what you do.” - Mary Simmons

Links:

• LinkedIn: https://www.linkedin.com/in/marysimmonshrconsultant/
• Company Website: https://www.asuresoftware.com/

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006