News & Tech Tips

Five Keys to Successful Next-Generation Store Transitions

bberry on May 15, 2013

Most restaurant groups have excellent programs for transitioning restaurants to the next generation of owner/operators. While the company provides guidance, there is still much to consider and to plan for in order to execute a successful transition.

  1. Be proactive and allow sufficient time for planning.  Don’t wait until you are ready to retire to make a transition plan. The next generation owner/operator in your family needs to be eligible for growth and rewrite. The brand may limit the number of restaurants he or she is able to acquire. Make sure you plan well in advance to ensure complete transfer of restaurants to the next generation.
  1. Consider rolling the next generation owner/operator into the parent’s organization.  This arrangement will allow growth and rewrite to be determined at the organization level and may assist next-generation operators with growing their business.
  1. It is okay to sell your next-generation owner/operator a restaurant at a discount.  Keep in mind that the discount is considered a gift, enabling you to take advantage of the current gifting laws that may allow tax-free transfers of ownership to the next generation.
  1. Conduct family meetings on a regular basis to discuss your transition plans and succession planning. Open communication is critical to a successful next generation plan.
  1. Seek advice from your attorney, accountant and financial adviser. Use your TAG Team (Trusted Adviser Group) in order to fully realize the benefits of the next-generation transition for both the parents and the new owner/operators.

If you are considering making a transition to a next-generation owner/operator and would like to explore ways to make the transition go smoothly, contact Bruce Berry, Director. Bruce works closely with restaurant franchise owner/operators.

Be prepared for the health care act’s “play or pay” provision

rlewis on May 7, 2013

wojciechowskiThe Patient Protection and Affordable Care Act of 2010’s shared responsibility provision, commonly referred to as “play or pay,” is scheduled to take effect Jan. 1, 2014. It doesn’t require employers to provide health care coverage, but it in some cases imposes penalties on larger employers that don’t offer coverage or that provide coverage that is “unaffordable” or that doesn’t provide “minimum value.”

A large employer is one with at least 50 full-time employees, or a combination of full-time and part-time employees that’s “equivalent” to at least 50 full-time employees. The nondeductible penalties generally are $2,000 per full-time employee.

Although the shared responsibility provisions don’t take effect until 2014, employers will use information about the workers they employ in 2013 to determine whether they’re subject to the provisions and face the potential for penalties in 2014. The rules are complex, so contact us today to learn how they may affect your business and what steps you can take to avoid, or at least minimize penalties.

BWC, Governor Propose $1 Billion Rebate to Employers

rlewis on May 7, 2013

Proposal Includes Tripling Safety Grants and Lower Rates from Modernizing Operations

OBWCThe Ohio Bureau of Workers’ Compensation (BWC) and Governor John Kasich have proposed that the BWC give back $1 billion to private employers and local governments in the form of rebates. The proposal also triples investments in worker safety grants and lowers all rates by modernizing workers’ comp operations. The $1.9 billion proposal is made possible by larger-than-expected fund balances at BWC generated by strong investment management.

The $1 billion in rebates equals about 56 percent of the most recent annual premium of the approximately 210,000 private and public sector employers. The BWC would send the rebates to employers by check.

The rebate proposal is expected to be submitted to the BWC Board of Directors for approval at its meeting in late May. The proposed rebates will apply to employers who are in discount programs as well as those who are not.

According to the proposal, companies and government employers that pay premiums into the state fund for injured workers and have up-to-date policies are eligible for a rebate of 56 percent of what they were billed for their last policy year. In addition to the rebates, the bureau wants to require employers to pay premiums upfront instead of after a coverage period.

The proposed switch to prospective premium payments requires legislative approval, which the bureau hopes to gain this year. The switch would not go into effect until 2014 at the earliest.

The bureau wants to give employers a credit equal to their previous six months’ premium as part of the transition to a new payment system. To do so, the BWC would issue a credit to employers totaling $900 million to help offset the costs associated with the transition. The switch would lead to rate reductions of two percent for private employers and four percent for public employers.

Along with the request for rebates, the proposal also increases the Ohio’s Safety and Wellness Grant Program from $5 million to $15 million. The state’s program has proven effective. In companies receiving grants, claims frequency has decreased 66 percent and claims costs per full time employee has decreased 86 percent.

Furthermore, the proposal lowers rates 2 percent for private employers and 4 percent for public employers by modernizing BWC’s payment system.

Details on the proposal are still being finalized. All three elements would be funded from BWC’s net assets, which have grown to  $8.3 billion and are far in excess of the target funding ratio of assets to liabilities established by the BWC board in 2008.

Phil Heit Receives Jefferson Award for Community Service

rlewis on April 23, 2013

HeitDr. Phil Heit, founder of Healthy New Albany, was named one of five winners of the prestigious 2013 Jefferson Awards, the annual awards program that recognizes individuals who do extraordinary things in their central Ohio communities without expecting a reward. Phil was recognized for his work promoting health with Healthy New Albany and the New Albany Walking Classic.

The Jefferson Awards are presented by WBNS 10TV and Nationwide. A total of 215 people were nominated for this year’s awards. From 20 finalists, a panel of 12 business, civic and community leaders selected the top five.

WATCH a video about Phil and his impact on the health of residents in central Ohio.

You Might Save More By Deducting State and Local Sales Tax

mnarog on February 25, 2013

For the last several years, taxpayers have been allowed to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. This break can be valuable to those residing in states with no or low income taxes or who purchase major items, such as a car or boat. But this break had expired Dec. 31, 2011.

Now the American Taxpayer Relief Act of 2012 has extended it for 2012 and 2013. So see if you can save more by deducting sales tax on your 2012 return. And if you’re contemplating a major purchase, you may want to make it in 2013 to ensure the sales tax deduction is available

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