New Law Addresses Pending Medicare Cuts

New Law Addresses Pending Medicare Cuts

Of the ten counties that encompass the Hudson Valley, all but Putnam, Rockland, and Westchester are categorically considered rural, according to the U.S. Census Bureau. Unsurprisingly, rural residents often encounter barriers to healthcare that limit their ability to obtain the care they need. Certainly, the past year and a half tested the limit of patients, as well as overwhelmed hospitals, and physicians too. Luckily, Congress took action earlier this month to delay financial cuts that would have exacerbated already existing healthcare disparities in rural (and urban) areas and would have affected reimbursement to hospitals and physicians. If you’re not familiar with the “Protecting Medicare and American Farmers from Sequester Cuts Act” (doesn’t exactly roll off the tongue, we know) here is your opportunity to familiarize yourself with this critically important law that’s gained attention and support from many medical professionals.

On Friday, December 10, 2021, the President signed the “Protecting Medicare and American Farmers from Sequester Cuts Act,” into law, addressing several Medicare provider payment cuts slated to go into effect on January 1, 2022. The legislation includes helpful provisions for hospitals and providers. Specifically, the Act will:

  • Extend the 2% Medicare sequester moratorium until March 31, 2022, re-implementing 1% cuts in the second quarter of 2022, and reinstating the 2% cut subsequently, funded by backend increased sequester cuts in fiscal year 2030.
  • Adjust the Medicare Physician Fee Schedule (PFS) conversion factor by 3.00% in calendar year 2022.
  • Delay Protecting Access to Medicare Act (PAMA)-related cuts to clinical laboratory services and the next round of private payer data reporting by one year until January 1, 2023, with the phase-in extended through 2025.
  • Delay implementation of the Medicare Radiation Oncology Model until 2023; and
  • Delay application of 4% cuts to Medicare and other federal programs resulting from statutory Pay-As-You-Go- (PAYGO) Act requirements until calendar year 2023.

The American Medical Association (AMA) and many others had urged Congress to act to avoid cuts from taking effect at the start of 2022. Many have since spoken out with relief in support of the law. The American Clinical Laboratory Association, which represents Labcorp and Quest Diagnostics, issued a statement applauding the passage of the Act. The American College of Radiology (ACR) also applauds the news but urged lawmakers to look beyond what they described as “short-term” fixes.

Rick Pollack, president, and CEO of the American Hospital Association, said, “The AHA is pleased that the House has recognized that now is not the time to make cuts to hospitals and physicians under the Medicare program. By eliminating a 2% Medicare reduction until April 2022 and stopping the 4% Statutory Pay-As-You-Go (PAYGO) Medicare cuts from taking effect in early 2022, providers on the front lines of the fight against COVID-19 will not face additional imminent financial jeopardy as they continue to care for patients and communities.”

As hospitals and physician practices continue to recover from and navigate the emotional and financial impact of the COVID-19 public health emergency, our team is here to assist in every step along the way. Here at RBT CPAs, we understand the diverse and complicated world of healthcare. Our team of healthcare experts brings industry expertise in reimbursement, regulatory compliance and audit, accounting, and tax services. We will continue to keep you notified of timely news that matters to you and your team, but if you’d like to connect and receive individualized services, please contact us today. If you would like to submit feedback or topic ideas for future articles our team produces, please feel free to TLideas@rbtcpas.com.

Sources: White House, Congress.gov, GYNA

Do Your Team Members Qualify for Limited Time Loan Forgiveness?

Do Your Team Members Qualify for Limited Time Loan Forgiveness?

For years, thousands of teachers, educators, social workers, military members, and other public servants in New York were promised debt relief support that never arrived. The harsh reality is that just over 16,000 borrowers nationwide have ever received forgiveness under the Public Service Loan Forgiveness (PSLF) program. In 2018, it was revealed that nearly 99% of applicants were denied forgiveness. Now, nearly 15 years after the program was officially launched, some good news is here for public servants. As a result of the COVID-19 national emergency and the tremendous strain it placed on public servants, on Oct. 6, 2021, the U.S. Department of Education (DE) announced an overhaul to the PSLF program rules.

Now, for a limited period of time, borrowers may receive credit for past periods of repayment that would otherwise not qualify for PSLF. As 2021 comes to a close, it’s important to address this change with all of your team members to ensure everyone who qualifies takes advantage of this huge savings opportunity. Read on to learn more about what to expect.

Through October 2022, borrowers who have worked 10 years (or made 120 qualifying monthly payments) in a qualifying job will be eligible for loan relief no matter what kind of federal loan or repayment plan they have. Past loan payments that were previously ineligible will now count, moving some borrowers closer to the finish line.

The change will immediately make 22,000 borrowers eligible to get loans canceled, and another 27,000 could become eligible if they get previous payments certified, according to the department. In total, more than 550,000 borrowers will be moved closer to forgiveness, the agency said.

“Borrowers who devote a decade of their lives to public service should be able to rely on the promise of Public Service Loan Forgiveness,” Education Secretary Miguel Cardona said. “The system has not delivered on that promise to date, but that is about to change for many borrowers.”

The Department of Education will be ramping up its efforts to review eligibility and approve loan forgiveness under the waiver program through most of the next year. Among other changes, the department will allow military members to count time on active duty toward the 10 years, even if they put a pause on making their payments during that time.

While DE will roll out these improvements in groups over the coming months, the department has not provided a specific timeline for the rollout of the new PSLF benefits. To assist your team in further understanding this limited PSLF opportunity, you can read these frequently asked questions and answers on studentaid.gov. Borrowers should also ensure the contact information on file is accurate, so direct them to register for an FSA ID at StudentAid.gov/create-account or update their StudentAid.gov contact information by logging in and visiting StudentAid.gov/settings. Additionally, feel free to contact our dedicated team of professionals at RBT who specialize in helping government clients. We look forward to providing you with personalized services and answering industry-specific questions.

Sources: Student Aid, DOE, NBC, NPR

Could This Training Plan Save the Supply Chain?

Could This Training Plan Save the Supply Chain?

It’s been nearly a month since a bipartisan group of lawmakers urged Labor Secretary Marty Walsh to speed up a federal program that recruits and trains new trucker drivers to help ease the supply chain bottlenecks that are disrupting the U.S. economy.

House Agriculture Committee Chairman David Scott, D-Ga., led more than 60 Democrats and Republicans in asking Walsh to expedite the application process for the Workforce Innovation and Opportunity Act (WIOA) grant program, which recruits underprivileged job seekers for different industries. The program provides job training for dislocated workers, low-income individuals, and unemployed youth.

WIOA Programs are designed to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with the skilled workers they need to compete in the global economy. The best part? It’s happening here, in our communities and you can get involved if it’s not already a part of your life. It requires states to strategically align their core workforce development programs to coordinate the needs of both job seekers and employers through combined four-year state plans, fostering regional collaboration within states through local workforce areas.

“With turnover rates for large, long haul truckers reaching the 90 percent mark and the lag time for training and onboarding new drivers lasting several months, it is critically important DOL enact these measures as soon as possible…Unless we exhaust every possible avenue in which to address this crisis, we risk worsening supply constraints for manufacturers and rising prices on consumer goods,” the lawmakers wrote to Walsh.

In a separate letter to the Biden administration, The American Trucking Associations warned that the industry is short 80,000 drivers. The group endorsed the lawmakers’ letter to Walsh.

Appearing with Timothy Dooner and Michael Vincent on FreightWaves’ WHAT THE TRUCK?!? Program, CEO of A&M Transport Andy Owens recently discussed the pivotal role that WIOA can have in boosting trucking industry awareness and employment opportunities. Owens who has served on the Southwestern Oregon Workforce Investment Board since 2015, said that anyone can get involved in a variety of capacities.

“Like with any volunteer position, you’re going to get out what you put into it; you can make it a full-time job or just make it a hobby,” Owens said, adding that appointments to the board are made by a recommendation from a community group like your like Chamber of Commerce and then approved through a county commissioner or its equivalent office. “The idea of workforce boards is to determine what industries or sectors you want to support, and then allocate appropriate funding to the local Workforce or Employment offices to help recruit and train a workforce to support those industries.”

So what’s a realistic goal while we wait to learn what the Labor Secretary will do? Be proactive and get involved in your local workforce development board. You can advocate for the industry and help secure more government funding for employment offices to train more truck drivers and hopefully better promote the industry as a whole. Contact our RBT team of professionals to review your specific manufacturing needs. Additionally, if you would like to submit feedback or topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

Sources: DOL, CNBC, Freight Waves

What the NYC Vaccine Mandate Means for Your Business

What the NYC Vaccine Mandate Means for Your Business

If you do business in the city, you need to be aware of the latest major expansion to New York’s “Key to NYC” program. Just last week, Mayor Bill de Blasio announced the first-in-the-nation vaccine mandate for private-sector workers which will take effect on December 27th, and will apply to roughly 184,000 businesses. This substantial change will surely impact contractors with upcoming jobs in the city.

“New York City will not give a single inch in the fight against COVID-19. Vaccination is the way out of this pandemic, and these are bold, first-in-the-nation measures to encourage New Yorkers to keep themselves and their communities safe,” said Mayor Bill de Blasio.

Currently, only municipal employees are subject to a COVID-19 inoculation requirement, which took effect for most city workers in late October and prompted backlash from members of the FDNY, NYPD, and the city Department of Education. In response, a rep for Mayor-elect Eric Adams, who will take office Jan. 1, did not take a position on de Blasio’s controversial measure.

“The mayor-elect will evaluate this mandate and other COVID strategies when he is in office and make determinations based on science, efficacy and the advice of health professionals,” said spokesman Evan Thies.

Acceptable proof of vaccination includes a CDC-issued vaccination card, the New York State Excelsior Pass, the Clear Health Pass, and the NYC COVID Safe App. The city will issue additional enforcement and reasonable accommodation guidance on December 15th, along with additional resources to support small businesses with implementation. This mandate expansion follows recently announced vaccination mandates for City employees, childcare providers, and non-public school employees. Ninety-four percent of the City workforce is vaccinated.

As recently as December 10, Governor Kathy Hochul announced that employees and patrons of all New York businesses and worksites must wear a mask indoors effective December 13 unless the business implements a vaccine requirement. This new measure was announced to address a rise in COVID-19 cases and hospitalizations and aims to curb outbreaks during the holiday season when more time is spent indoors and with crowds. Alternatively, employers can implement a vaccine mandate, requiring that all employees and customers present proof of vaccination in order to enter. Businesses that violate this measure face civil and criminal penalties, including fines of up to $1,000 per violation. The mandate will remain in effect through January 15, at which time the state will re-evaluate the conditions.

Our team is carefully tracking these developments and will continue to keep our clients informed through our upcoming thought leadership content. Questions or concerns? Our professional RBT team that specializes in construction clients is here to help, contact us today. Additionally, if you would like to submit feedback or topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

Sources: NYC.GOV, Governor.NY.GOV

Why New York Doesn’t Rank as 2021’s Most Improved State

Why New York Doesn’t Rank as 2021’s Most Improved State

What comes to mind when you think about a state that’s set up for its communities to succeed and thrive?

There are more than 2 million small businesses in New York State, which employ 4 million people. These small businesses make up 99.8% of all businesses within the state and employ more than half the state’s workforce. We all know that local businesses help support the tax base through businesses taxes and the wages provided to employees. The possibility of workforce expansion and economic growth prompts municipalities, counties, states, and the federal government to offer various forms of assistance, from grants to research opportunities, beneficial legislation, and worker training programs. But not every state is up to speed on supporting businesses, and the end of the year provides the perfect opportunity to reflect on what New York is and is not doing to be competitive in the year ahead.

The business of ranking America’s top states for business in 2021 takes a lot of factors into consideration, and New York doesn’t land a top spot.

To determine rankings, CNBC scored all 50 states on 85 metrics in 10 broad categories of competitiveness. Each category is weighted based on how frequently states use them as a selling point in economic development marketing materials. Rather than an opinion survey, the criteria and metrics are developed in consultation with a diverse array of business and policy experts. This year, Maryland which ranks No. 12 overall, jumped an impressive 19 spots compared to the 2019 study, making it the year’s most-improved state. New York ranks No. 22 on the list. So, what sets Maryland apart, and where does our state fall short? Let’s dive in.

Broadband service in Maryland is among the best in the nation, at a time when connectivity has taken on new importance in the battle for business.

Maryland also has one of the most reliable power grids in the nation, with even more improvements in store. Maryland improved in eight of the study’s ten categories of competitiveness, but nowhere does Maryland improve more than in Infrastructure, where it finishes 8th in 2021, up from the 41st spot in 2019.

Where are we falling short, New York?

Again, New York ranks No. 22. What really hurts the ranking seems to be two areas that likely won’t come as a surprise to our readers. New York ranks No. 41 in the Cost of Doing Business category, and No. 49 in the Business Friendliness category. The proximity to New York City provides excellent access to capital and skilled labor but New York businesses contend with high taxes and a complex regulatory landscape. The business income base tax for the state of New York is 6.5%, though certain businesses might qualify for a reduced 5.5% rate. In addition, businesses could be subject to a capital base tax or fixed dollar minimum tax. State law typically requires corporations to pay whichever is highest.

What’s the takeaway?

The good news is, when it comes to the best and worst states scored by internet coverage, speed, and price access, New York trails close behind Maryland (No. 4) in the No. 7 spot, according to BroadbandNow Research. Maryland is also ranked third for connectivity behind New York and New Jersey, which speaks volumes of New York’s recent investments in internet accessibility. To boost our competitive edge, it would serve local governments to get strategic about business incentives and consider further automation to make our grid even more reliable and efficient to withstand adverse weather events, incorporate cutting edge technologies, and prioritize changing customer needs. If your team or a local business you are serving has questions about complex business tax codes or regulations, we can help. Contact our dedicated Government group at RBT to schedule a consultation today. Additionally, if you would like to submit feedback or topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

Sources: CNBC, BroadbandNow, SBA

Facing a Mass Exodus: How Strong is Your Financial Aid Office?

Facing a Mass Exodus: How Strong is Your Financial Aid Office?

Just about every industry across the country is experiencing a widespread labor shortage.

In fact, the phenomenon is so prevalent that people are referring to it as ‘The Great Resignation’ as record numbers of workers are reevaluating and leaving their jobs amidst the ongoing pandemic. The U.S. Bureau of Labor Statistics reported that nearly four million Americans walked away from their jobs in April 2021—the most in a single month since the agency began tracking the statistic 20 years ago.

While companies nationwide are grappling with retaining talent, higher education institutions are facing a unique challenge of their own – shortages in financial aid offices. So what is the real impact of facing staff shortages in financial aid offices, and what might the financial implications be for your school?

Having fewer employees in the financial aid office can lead to consequences that extend far beyond longer customer wait times.

Over the last year, the National Association of Student Financial Aid Administrators (NASFAA) has reported an uptick in interest from institutions in the temporary staffing assistance that the association provides. In a recent interview with Inside Higher Ed, president and CEO of the NASFAA Justin Draeger said the challenge creates a disservice to both students and schools.

“Not only does it decrease services to students, especially at a time when students need the most help, but understaffing can also have a big impact on a school’s ability to be in compliance with the litany of federal and state requirements,” said Draeger.

While compliance is always important it’s especially critical now, as the Biden administration has openly shared plans to crack down on institutions that aren’t adhering to federal student aid program rules. The Office of Federal Student Aid at the Department of Education recently announced that it’s reviving the Office of Enforcement — which was deprioritized under the Trump administration — to “strengthen oversight of and enforcement actions against postsecondary schools that participate in the federal student loan, grant, and work-study programs.”

The bottom line?

Even if your financial aid office is fully staffed right now, you need to create long-term retention plans today so you don’t run into issues tomorrow. Some colleges across the country are staying prepared and finding success by streamlining and automating office processes. A good chatbot, for example, can answer hundreds, if not thousands, of routine questions, in real-time, in multiple languages, any time of day. They can be trained to refer especially tricky questions to staff for personal answers. Other successful strategies include cross-training employees, and even hiring work-study students who are already well trained with office practices.

“In the end, schools can pay now — by hiring and retaining staff — or pay later, when they are found out of compliance and face possible federal fines and penalties,” Draeger said.

Making a plan today to alleviate stressors that your financial aid officers face can be the difference between struggling or succeeding in the upcoming academic year. If you’d like your financial aid office to have an opportunity to review compliance with complex tax laws, our dedicated education team is here to help develop a personalized, long-term strategy for your staff. Contact us today here. Additionally, if you would like to submit topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

Sources: NASFAA, Inside Higher Ed, University Business

Rolling a 401K into a Roth IRA

Rolling a 401K into a Roth IRA

While the goal is to retain loyal employees (rather than constantly hiring and training), the reality is most Americans don’t stay in one job their whole lives. According to the Bureau of Labor Statistics, it turns out that the average person has 12 jobs over a 32-year span! Fortunately, 401(k) plans are portable. Do you know the benefits and penalties involved with each choice? It’s important to stay up to date so you can keep your team informed.

If a person decided to roll over their former employer’s 401(k) directly into a new employer’s plan, they’ll have to:

  1. Arrange the rollover with the new 401(k) plan administrator. They may have to select the investments they’d like to make before they complete the rollover. Otherwise, they can transfer the lump sum and allocate it gradually to investments of their choosing
  2. Complete the forms required to move their money from the former employer’s plan
  3. Ask their former plan administrator to send a check or electronically transmit the account value directly to the administrator of their new plan

When a person retires or leaves a job for any reason, they have the right to roll over 401(k) assets to an IRA. There are several direct rollover options:

Rolling a traditional 401(k) to a traditional IRA

They can roll traditional 401(k) assets into a new or existing traditional IRA. To initiate the rollover, one must complete the forms required by both the chosen IRA provider and 401(k) plan administrator. The money is moved directly, either electronically or by check. No taxes are due on the moved assets, and any new earnings accumulate tax deferred.

Rolling a Roth 401(k) to a Roth IRA

They can roll Roth 401(k) assets into a new or existing Roth IRA with a custodian of their choice. One must complete the forms required by the IRA provider and 401(k) plan administrator, and the money is moved directly either electronically or by check. No taxes are due when the money is moved and any new earnings accumulate tax deferred. Earnings are eligible for tax-free withdrawal once the IRA has been open for at least five years and the employee is at least 59½.

Rolling a traditional 401(k) to a Roth IRA

If a traditional 401(k) plan permits direct rollovers to a Roth IRA, they can roll over assets in their traditional 401(k) to a new or existing Roth IRA. Keep in mind they’ll have to pay taxes on the rollover amount they convert.

For 2022, 2021, 2020, and 2019, the total contributions a person makes each year to all of their traditional IRAs and Roth IRAs can’t be more than $6,000 ($7,000 if age 50 or older), or if less, your taxable compensation for the year. It’s a good idea to check in with your company’s plan administrator as well as a tax advisor to determine whether a move from a traditional 401(k) to a Roth IRA is allowed, and the right choice. RBT CPAs, LLP’s tax team has developed guidelines that help us perform client work as efficiently and effectively as possible. We assign experienced staff and gather industry knowledge from Firm resources and market research, to identify and target issues significant to your business. Contact us to set up a primary consultation to learn more about what we can do for you.

Sources: IRS, FINRA

Time is Running Out to Opt-out of Marijuana Tax

Time is Running Out to Opt-out of Marijuana Tax

Cities, towns, and villages can opt-out of allowing adult-use cannabis retail dispensaries or on-site consumption licenses from locating within their jurisdictions, but legalization is a done deal. Adult-use cannabis possession and use by adults 21 years of age or older following the Marijuana Regulation & Taxation Act (MRTA), is legal throughout New York State. Less than a month away from the deadline, the countdown is on to opt-out of collecting marijuana tax! With just a few weeks left to make a final municipal decision, what are the pros and cons, and what is the tax revenue loss like if your municipality opts out?             

Opt-out Deadline

To opt-out of allowing adult-use cannabis retail dispensaries or on-site consumption licenses, a municipality must pass a local law by December 31, 2021. The impending deadline was designed to give the marijuana markets some consistency and now that the clock is ticking to decide, many towns, cities, and villages are scrambling to schedule public hearings on the issue in the coming weeks before it’s too late. If a municipality does not take any action by December 31, 2021, the municipality will be automatically included, and unable to opt-out at a future date. However, a municipality may opt back in, to allow either, or both, adult-use retail dispensary or on-site consumption license types by repealing the local law which established the prohibition.

Local Control

Except for the opt-out provision, all municipalities including counties are blocked from adopting any law, rule, ordinance, regulation, or the prohibition on the operation or licensure of adult-use, medical, or cannabinoid hemp licenses. However, towns, cities, and villages can pass local laws and regulations governing the time, place, and manner of adult-use retail dispensaries and on-site consumption licenses as long as the local law and regulations do not make the operation of the license unreasonably impracticable as determined by the Cannabis Control Board. For example, cities, towns, and villages are permitted to pass laws and regulations on local zoning and the location of licensees, hours of operations, and adherence to local building codes. Municipalities may not issue local licenses to cannabis licensees.

Taxes

Municipalities that do decide to opt-out will not be eligible to receive any of the revenue generated from adult-use marijuana sales. MRTA establishes a 13 percent tax on adult-use marijuana sales, 4 percent of which is distributed to local governments based on where the retail dispensary is located. 25 percent of the tax revenue goes to the county and 75 percent goes to the cities, towns, or villages within the county as a proportion of cannabis sales. If a town and a village within the town both allow adult-use sales, the revenue will be distributed based on an agreed-upon distribution agreement between the town and village. If no such agreement exists, then the revenue distribution between the town and village will be divided evenly.

Your Municipality’s Decision

Final appointments to the Cannabis Control Board and the Office of Cannabis Management were not made until September 2021—six months after MRTA became law—and the Cannabis Control Board didn’t hold their first meeting until October 5, 2021. The delays have caused a widespread wait-and-see approach by municipalities with many opting to get on board when there is a clearer picture of what retail marijuana operations will look like after further state regulations are announced. Ultimately gaining public feedback and weighing the pros and cons of tax revenue generation should help you make the best decision for your community. If you have questions regarding this deadline, we can help. Contact our dedicated Government group at RBT to schedule a consultation today. Additionally, if you would like to submit feedback or topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

Sources: Cannabis.ny.gov, Ny.gov/local-government

Real Talk: Raising Costs 101

Real Talk: Raising Costs 101

Ongoing pandemic-related shortages mean labor and material costs are rising, and so is customer demand. Facing long finished products and raw materials delays, small to medium-sized manufacturers are being forced to adapt quickly. In fact, here’s a Reuters list of comments from U.S. companies describing their efforts to counter this inflationary environment. The good news? While manufacturers face intense cost pressure, many customers have been willing to accept higher prices. But regardless of the circumstances, communicating price increase is no easy task. While consumers understand the challenges industries are up against, it won’t make the idea of spending more money any more fun or appealing.

So as we head into 2022, what are the most effective ways to communicate price hikes without damaging your customer relationships – and is that even possible? We’re relaying tried and true research-backed methods released by Harvard Business Review to paint a clear picture of the message your customers need to hear.

Call the action what it is: a price increase.

Don’t label it a price adjustment, a price change, or other jargon. Rather than tiptoeing around the inevitable – be direct. Your current circumstance means your customer will need to pay more out of pocket. Decades of consumer psychology research has found that complicating bad news rarely pays off for companies. Customers know that brands are trying to influence their opinions and behavior and appreciate it when they use helpful, transparent, and informative communication methods. When a brand uses a code word to convey a price increase, it does not distract customers or dilute the negative impact of the news. It tends to make recipients more cautious and critical of the announcement.

Clearly explain the price increase.

The realities of inflation, widespread material and labor shortages, rising input costs, and the return to “normalcy” are on everyone’s mind. Under such circumstances, when customers learn that a brand’s price is increasing, it simply confirms what they’ve been expecting. Don’t overcomplicate your message, be straightforward and honest. Research shows that the perceived fairness of a price increase is the second-biggest driver of how customers react.

Link the price increase to a customer-centric value narrative.

When communicating a price increase, provide a value narrative — a compelling story for why the price is increasing that focuses on customer value. A value narrative can be effective even when the price increase is predominantly due to input cost increases. Communicate to customers that the brand can only continue to provide the current level of benefits if it raises the price. It’s powerful to let customers know that your company is committed to excellence and opting not to degrade the product’s quality. Remember: customers are more willing to accept a price increase if it’s accompanied by improvements to your product or service. Better quality fabric in the clothing you manufacture, or even new packaging for your product can help justify a price increase.

Is there a best time of year to raise prices?

That’s a tricky question, and the answer is there is no one size fits all date or time of year that will work for everyone. Whatever time of year you decide you need to make the change, ensuring that your customers have ample time to come to terms with the price increase is key. They may need to re-assess their budget or consider alternative options, so you should keep them in the loop with advance notice. It should also go without saying, but make sure everyone on your team is aware of the price adjustments and that you help your team navigate any questions they may have, too. Our Manufacturing Services Group works with businesses in diverse industries, from building materials to food processing, specialty sporting goods, commercial lighting, health, beauty, pharmaceuticals, and more. Whatever the size of your venture, we can help you meet your goals now and in the future. Contact our RBT team of professionals to review your specific manufacturing needs. Additionally, if you would like to submit feedback or topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

Sources: HBR, Reuters