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

While most business owners know they need workers comp, few know how to make it work efficiently for them. Here to explain the benefits of pay as you go workers comp is Vice President of Partner Strategy at E-COMP, Robert Campbell.

Robert joins Mike Vannoy to share why pay as you go workers comp is a crucial tool for managing your cash flow. Robert also shares the risks of mis classification, the need to automate payments, and why you should always require contractors to carry their own workers comp.

Takeaways:

• Business owners need to understand that pay as you go workers comp is ultimately a cash management tool. Any small business needs to be focused on cash management, and pay as you go workers comp lets you hold onto your cash for longer.
• Paying your taxes a year in advance would cause undue financial strain, and paying your workers comp in advance has the same disadvantages. By paying as you go, you pay more accurately, and keep your assets liquid.
• Managing different workers comp class codes requires careful documentation. If during an audit, you can’t document the split to an insurance company's satisfaction, you will pay the highest rated code for everyone.
• While your state may not require 1099 workers to carry their own workers comp insurance, you should still require it as a policy. Otherwise you open yourself to issues and possible misclassification fees.
• Due to some rounding in the pay as you go process, there can still be a need to perform an audit. As you may estimate expected payroll wages, your actual number for wages may differ, resulting in the need to audit.
• While you can report pay as you go workers comp manually, having an automatic integration saves both time and effort. Automation sends data directly to your insurance provider, and significantly reduces the risk of error.
• When you are making manual payments and notifications are getting mailed, it can be easy to miss a bill or audit notification. By keeping things digital, you protect yourself from missing important notifications and having your policy canceled.

Quote of the Show:

• “There are people that just ignore their audit. Which is always a terrible idea.” - Robert Campbell

Links:

• LinkedIn: https://www.linkedin.com/in/robertcampbellsdriven/
• Company Website: https://ecompnow.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

The Affordable Care Act outlines which employers need to provide care, and what care they need to provide, yet is difficult to navigate. Here to help business owners better understand the ACA is Principal at Jackson Lewis P.C., Brian Shenker.

Brian re-joins Host Mike Vannoy to dive into all things ACA. Brian breaks down the classification requirements for applicable large employers, the nuances of forms 1094C and 1095C, and the different safe harbors employers can choose from when determining affordability.

Takeaways:

• The most important thing small business owners need to understand about the ACA is whether they are subject to the law. For businesses that are growing, they need to be planning for ACA compliance.
• The ACA does not require applicable large employers to provide healthcare, but will impose strict fines on companies that do not comply. While you can pay the fines to avoid providing healthcare, it is often more expensive to not comply.
• The ACA defines an applicable large employer as a company with more than 50 full time employees and equivalents. While the distinction seems fairly straightforward, ALEs are calculated by the hours each employee works, rather than just headcount.
• ALEs need to not only provide healthcare, but report on their providing as well. ALEs need to provide forms 1094C and 1095C to report on details including if coverage is offered and the value of the plan.
• It’s important to understand that forms 1094C and 1095C are different forms with their own filing requirements and date. These are not stapled to quarterly 941’s or your income tax return on April 15th.
• The ACA says that care offered to employees must be affordable, which is measured by 3 different safe harbors to choose from. Affordability is measured against either the federal poverty level, employee’s monthly pay, and employee W2 wages.

Quote of the Show:

• “ACA is not something that happens overnight. It’s something you need to plan for.” - Brian Shenker

Links:

• LinkedIn: https://www.linkedin.com/in/brian-shenker-53708712/
• Company Website: https://www.jacksonlewis.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

Proactively making sure your employees are healthy results in a happier, healthier, and more satisfied employee base, but can also help businesses save money. Here to explain the benefits to proactive health management plans is CEO of Key Benefits Administrators, Larry Dust!

Host Mike Vannoy sits down with Larry to learn why proactive health management is good for both employees and employers. Larry shares the difference between proactive health management and wellness plans, the benefit of a coach, and how to empower employees to get the most out of their doctors visits.

Takeaways:

• Small business owners need to understand that proactive health management is not just a wellness program. Wellness programs lack results because they are not targeted enough, while proactive plans focus on tangible results.
• Good health is good business. By providing your employees with consistent care, chronic illnesses can be treated more effectively and cost efficiently. Consistent regimens of care can save 2⁄3 the cost of reactive treatment when issues arise.
• Coaching is a major part of a proactive health plan. By having a close relationship between employee and coach, employees get motivation to make changes and get plans to help them achieve their goals.
• As patient doctor relationships are changing, having a coach helps employees get the most out of their doctor's visits. If patients have follow up questions or need help finding the right words to use at appointments, coaches become a crucial resource.
• Managing care for your employees requires providing the proper incentives to complete treatment. Providing reductions to employee contribution upon 100% completion of care saves both employees and employers money.
• Ultimately, proactive management plans are not providing care, but are scouting for patients who may need care. Once identified, these patients are given education to have a more effective interaction with their healthcare provider.
• The best treatment for a disease happens in stage one, however, due to financial constraints, many patients don’t seek medical care until stages 3 or 4. By assisting employees, you allow patients to seek care when issues arise.

Quote of the Show:

• “We're not delivering the care, we're the patient scout for the doctors.” - Larry Dust

Links:

• Company Website: https://keybenefit.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

Every business wants to grow, but can growth potentially hurt your business? This week’s guest thinks so. He’s a speaker, entrepreneur, and financial expert who helps businesses uncover the secrets to profitability. Joining the show this week is Partner at Carr, Riggs & Ingram, Greg Crabtree!

Greg sits down with Mike Vannoy to explore the world of Growth Capital. Greg explains what the cost to power ratio is, how changing your billing cycle can free up revenue, and when it makes sense to borrow vs spend your own cash.

Takeaways:

• A common area where business owners get themselves into trouble is by trying to apply a method or practice from a different category of business to their own. If funding strategies don’t line up, businesses can quickly find themselves losing money.
• There are three capital types, light, moderate, and heavy. Capital light businesses hold no inventory or accounts receivable and get paid upon service. Moderate businesses hold either inventory or accounts receivable, and heavy businesses hold both.
• The cash to power ratio is between your trade capital amounts and your profits. If trade capital is 10% and profit is 5%, you will lose 5% of your revenue before making your first dollar. By decreasing trade capital and increasing profit, you access funds sooner.
• Growth is something that should be pursued, but not at the expense of the business. If you are looking to drive new revenue, but don’t have a line of credit available or cash on hand, prioritize growing your cash on hand first.
• One of the best ways to free up capital is to lengthen out how long it takes you to pay your suppliers, while at the same time shortening your payment times with your customers. If you can try to bill them as soon as services are rendered.
• Borrowed capital can be dangerous, but there are times where it makes sense. If you are buying a productive asset like a van or cnc machine, financing the purchase allows you to keep two months of business expenses in cash on hand.
• Businesses need to start with profitability, and profitability comes from understanding the data behind your business. Once you know the data you can identify which areas are making or losing you money.

Quote of the Show:

• “Cash is a choice and debt is a choice.” - Greg Crabtree

Links:

• LinkedIn: https://www.linkedin.com/in/greg-crabtree-simple-numbers/
• Company Website: http://www.CRIcpa.com
• Publications: https://www.simplenumberscri.com/books

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

Staying compliant during your hiring process can be challenging, especially as well intentioned questions can actually end up being discriminatory. Our guest this week helps clear up any misconceptions around EEOC. Please welcome to the show, VP of HR Compliance and Learning and Development at Asure, Mary Simmons!

Mary and Mike sit down to explore some of the common pitfalls employers experience in the hiring process. Mary dives into the federally protected classes, the importance of having consistent questions, and how to write accurate physical requirements in your job descriptions.

Takeaways:

• While some states may not require anti harassment training, there is still a federal level of regulations that need to be observed. By knowing the nuances of your state you can ensure you stay compliant with regulations.
• Under the EEOC, there are 8 protected classes: race, color, religion, sex, national origin, age, disability, and genetic information. These are the federal protected classes, and some states add on additional protected classes.
• For employers, acting out of good intentions can accidentally count as discrimination. While moving a pregnant employee to a less physically strenuous job may seem like an accommodation, doing so without asking could be considered discrimination.
• While it may be tempting to discredit employee feelings alone, doing so can have negative repercussions. While you may not be found legally responsible in a lawsuit, the cost and reputation losses alone can severely impact your working environment.
• When building out your job description, you need to have physical requirements that are realistic. Any job, whether it’s working in a warehouse or sitting at a desk should include the physical requirements of the role.
• When dealing with disability in the hiring process, employers need to ask all candidates the same questions, and allow the candidate to make the distinction as to if they can meet the physical requirements.
• No two candidates are the same, and asking the same questions protects you from being discriminatory. Consistency in your questions allows you to evaluate your candidates on the basis of their answers.

Quote of the Show:

• “Feelings are important here, because I have to feel safe at work.” - 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