Pass-Through Entity Tax (PTET): Things to Do ASAP

Pass-Through Entity Tax (PTET): Things to Do ASAP

At RBT CPAs, we’re always ready to take on everything tax- and accounting-related for your organization, so you’re free to focus on driving your business success. Unfortunately, New York’s rules for its Pass-Through Entity Tax (PTET) require you – the business owner – to complete certain tasks. While we can’t automatically do them for you, we are here to guide you – and help where we can – so you have peace of mind that you’ve taken the right steps by designated deadlines to maximize the PTET for your business.


If your business opted in for the 2022 PTET:

  • Are you prepared to pay any balance owed for 2022 as part of your NYS tax filing by the March 15 deadline? RBT CPAs can help you file and pay in conjunction with your regular partnership or S corporation tax filing.
  • Do you want an extension of time to file? A six-month extension to September 15th can be requested; you must still pay the estimated PTET by March 15.
  • Do you want RBT CPAs’ assistance to file your return, file for an extension, or make a PTET payment? We are glad to help! You’ll need to complete Form TR 2000 giving us the authorization to log into your NYS tax account, file your return or extension request, and pay using the tax information you provide regarding how much is owed.

Consider whether your business should opt in for the 2023 PTET:

  • This is a tough one. You will only have financial information for the first few months of the year, so you’ll have to speculate about much of the year’s profits.
  • Take a look at your organization’s cash flow and the potential impact of quarterly payments. You’ll have to make quarterly payments starting in March (and then June, September, and December).
  • Are you considering selling your business or property owned in your partnership or S corporation in 2023? These sales can create significant tax events; a PTET election would help to minimize that tax burden.
  • If you’re unsure whether the benefit outweighs the administrative cost, RBT CPAs can partner with you to provide a PTET cost/benefit analysis for NY and other states.
  • Before making your 2023 election, have a conversation with your RBT CPAs team member.

If your business decides to opt in for the 2023 PTET:

  • Have you completed your election to opt in? You cannot wait until you file your taxes for 2023. Opting in is an additional step you must complete before or on March 15. You, the business owner, must make this election online via your NYS tax account – you cannot delegate this activity to a third party like a tax preparer. Please see here for our step-by-step guide to making your 2023 NY PTET election.
  • If your business is making the PTET election for 2023, have you engaged RBT CPAs to provide estimated quarterly tax payments (due in March, June, September, and December)?
  • If you completed your 2023 PTET election, has your business made its first quarterly estimated tax payment by March 15, 2023?
  • RBT CPAs can assist with certain aspects of this if you provide us with a completed Form TR 2000 (see “If your business opted in for the 2022 PTET” above for details).

If you have any questions or need additional information or assistance, please remember RBT CPAs is here to help. Let us know what you need so you can be 100% confident you’re making the right decisions and taking the right actions for your firm in relation to the NYS PTET.

5 Different Ways to Address the Talent Shortage in Manufacturing

5 Different Ways to Address the Talent Shortage in Manufacturing

Good people are hard to find. Keeping them is even harder. With an estimated 2.1 million unfilled manufacturing positions in the U.S. by 2030 according to the National Association of Manufacturing, manufacturing companies of all sizes need to take action now to attract and retain employees needed for business success today and tomorrow.

Unlike in the past, today’s manufacturer is not only competing against other manufacturers of its size. The war for talent crosses all industries and organization sizes. Whether you’re up against an industry behemoth that can afford top pay and benefits or the restaurant across the street that’s matching your company’s pay for easier work, bringing your recruiting and retention efforts to a new level isn’t optional – in fact, it’s imperative.

Here are five ways other manufacturers are winning the war for talent:

  1. Grow your own talent. As reported in com, when Lucid Motors needed skilled workers for a new plant, it partnered with government, a community college, and the state’s economic development team to build and equip a state-of-the-art training facility focused on car assembly. All 700 of its new employees were trained at the center and ready to work when the new plant opened. Similarly, BMW expanded an apprentice program to four community colleges; opened new training paths for high school seniors; and invested $20 million on a new training center for professional development and technical training. (Keaveny, Chris. “To Address Labor Shortages, Manufacturers Must Become Talent Creators”. 2022.
  2. Don’t look in the usual places. Everyone else is already doing that. As reported by MITSloan, “Amsted Rail, a manufacturer of systems and components for freight and transit railcars, is collaborating with a program called c.stars, which puts young adults with a high school diploma or GED through a 14- to 16-week training program followed up by job placement.” (Stackpole, Beth. “Practical ways to tackle manufacturing’s labor crunch.” 2022. MITSloan.MIT.Edu.) Rather than a general job posting site, check out’s recruiting automation solution to gain access to a community of 700,000+ manufacturing workers.
  3. Consider “second chance” hiring. As reported by the National Association of Manufacturers, JBM Packaging and Saint-Gobain found engaged and productive employees who would stick around by starting programs to recruit and hire individuals with criminal records. The majority of these employees fill entry-level positions, but about 10% have mechanical, machinist, and other technical skills – that doesn’t even get into the potential tax credits through the Work Opportunity Tax Credit or WOTC. (NAM News Room. “How Manufacturers Should Pursue Second Chance Hiring.” January 2023. org.)
  4. Explore how technology can help you get more work done with fewer people. As reported on com, robotic arms can perform assembly line work; autonomous guided vehicles can transport materials through warehouses and on factory floors; 3D printing has significantly reduced the time required to create design solutions; autonomous machine vision solutions can track, sort, count and do visual quality inspections; and AI-powered systems can connect and manage the manufacturing process from start to finish. (Gow, Glenn. “The Labor Shortage Is Killing American Manufacturing. Here’s How AI Can Bring It Back to Life.” August 2022.
  5. Be willing to change. As reported by the Triad Business Journal, at the least, pay needs to be at the marketplace median. Consider novel benefits that are genuinely meaningful to today’s workforce. Let go of outdated policies and practices. Create a workplace people want to be part of. Once you’ve made all of these updates, consider reaching out to ex-employees and letting them know what you’ve learned, how you’ve changed, and how valued they’ll be if they come back. (Brannock Jr, R. Michael. “Manufacturers. It’s Time to Get Serious About Talent.” October 2022.

For additional insights and assistance recruiting and retaining talent, contact RBT CPAs’ affiliate, Vision Human Resource Services. For accounting, audit, business advisory, and tax services, reach out to your local RBT CPAs office.  We’re the largest accounting firm in the Hudson Valley and we believe we succeed when we help you succeed. Give us a call today.

Storm Alert: How to Protect Your Business’ Finances

Storm Alert: How to Protect Your Business’ Finances

A bomb cyclone hits leaving snowfall that’s measured in feet instead of inches, bringing down powerlines and trees that will keep area businesses closed for days and possibly weeks.

A fire at a nearby building creates hazardous conditions for the surrounding area, resulting in officials making nearby offices off-limits until safety can be assured.

A severe hurricane hits. The roof of your office building is torn off and everything inside is destroyed.  Work conducted in that building is stalled for months.

Severe weather and fire events are occurring with greater frequency. While you have commercial property insurance to cover physical assets, what about income you lose and expenses you must continue to pay should your business temporarily shut down?  That’s where business interruption insurance comes in.

Business interruption insurance replaces financial losses and expenses you must continue to pay during a shutdown related to a covered weather or fire event. So, any income you would have earned had the event not occurred plus any expenses you must continue to pay while your business is temporarily shut down are replaced. This helps protect your business’:

  • Cash flow. Business interruption insurance replaces the income your business would have earned had the event not occurred, ensuring cash continues to flow into your business even if you’re temporarily closed.
  • Working capital and equity. Rather than seeing your assets shrink and debts increase due to expenses you would still have to pay during a temporary closure (i.e., payroll, mortgage, taxes, loan payments, temporary workplace expenses and more), business interruption insurance covers these expenses. As a result, your working capital, short-term business health, and solvency are protected.
  • By providing coverage to protect revenue and cover expenses, your business has the help it needs to protect profits during a shutdown and more quickly return to normal once a shutdown has ended.
  • During a temporary shutdown, business expenses may increase to cover costs associated with an interim workspace (i.e., rent). Rather than seeing your cash on hand going to cover additional expenses, business interruption insurance can protect it by covering costs associated with having to open a temporary work location.
  • Maintaining cash flow, working capital, and equity plays into the formula to determine your bonding rating, which can impact your ability to bid on and secure future work.

Anything not covered by your business interruption insurance, as well as the premium you pay for that coverage, are deductible on your income statement. What’s more, depending on your business’ structure, a business loss, if incurred, can be carried forward into future years if not used up in the current year.

In addition to the financial protections business interruption insurance affords, it can also help with employee retention and productivity by covering payroll during a temporary closure.  Considering today’s challenges recruiting and retaining talent, keeping payroll going during a shutdown ensures your business will have the staff needed to ramp up productivity as soon as the shutdown is over.

Finally, extreme weather or fire events usually result in more contracting jobs following the event. By having business interruption insurance, you not only keep your business running, but also equip it to take on additional work, and that benefits everyone.