Day: April 3, 2025

New York’s Expanded Efforts to Strengthen Local Government Cybersecurity

Over the last several years, New York State has significantly expanded cybersecurity measures in response to the ever-growing threat of cyberattacks against local governments. Cyberattacks have led to data breaches, ransomware threats, crippling disruptions, and major financial losses for targeted government entities. New York State Comptroller Thomas DiNapoli stated the following in 2023: “Cyberattacks are a serious threat to New York’s critical infrastructure, economy and our everyday lives. Data breaches at companies and institutions that collect large amounts of personal information expose New Yorkers to potential invasions of privacy, identity theft and fraud. Also troubling is the rise in ransomware attacks that can shut down systems we rely on for water, power, health care and other necessities. Safeguarding our state from cyberattacks requires sustained investment, coordination, and vigilance.”

Cyberattacks continue to threaten New York’s infrastructure in 2025, leading the State to implement additional protective measures. Governor Hochul’s 2025 State of the State address, delivered in January, laid out expanded initiatives to bolster cybersecurity efforts in local government entities. Among these initiatives are the mandated reporting of cyber incidents, mandatory cybersecurity awareness training for local government employees, and additional investments in the Office of Information Technology Services to improve cyber defense tools.

Mandated Reporting of Cyber Incidents

In the State of the State address, Governor Hochul announced plans for legislation requiring municipalities to report all cybersecurity incidents and ransom payment demands to the division of homeland security and emergency services. The details and status of the proposed legislation can be found here: Assembly Bill A6769. Local governments are not currently required to report such incidents to the State, leading to a gap in cybersecurity defenses. The new reporting requirements would allow the State to build a comprehensive picture of cyber threats, enabling more effective planning and responses to such risks.

Mandatory Cybersecurity Training for Government Employees

Currently, cybersecurity training is only available to executive branch employees in New York State. The governor has proposed extending mandatory cybersecurity awareness training to local governments as well. This annual training would be provided online, free of cost, to ensure equal access to local government employees across the state.

Investments in the Office of Information Technology Services

Additional investments in New York’s Office of Information Technology Services (ITS) have also been proposed as a means to continue strengthening state and local government networks against cybercrimes. The Office of Information Technology Services works to improve the resilience of government networks using advanced cyber tools.

Importance of Cybersecurity for Government Entities

Local governments are responsible for safeguarding a great deal of confidential information and critical infrastructure. As such, protecting government systems from cyber threats is of utmost importance. With cyber-attacks becoming more frequent and more sophisticated every day, municipalities need to prioritize cybersecurity and employee awareness. The proposed measures discussed above, if passed, will assist local governments in their efforts against cyber threats.

For now, local governments should monitor the status of the proposed legislation and training requirements. If passed, these new mandates will require municipalities to implement updated reporting mechanisms and training procedures. Municipalities can also visit the Cybersecurity & Infrastructure Security Agency (CISA) and the NYS Office of Information Technology Services Local Government Cybersecurity webpage for access to online training, information resources, cybersecurity awareness, and cybersecurity toolkits for local governments.

While you focus on strengthening cybersecurity in your municipality, know that RBT CPAs is available to support your accounting, audit, advisory, and tax needs. We’ve been proudly serving municipalities, businesses, non-profits, and individuals in the Hudson Valley for over 55 years. Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

Taxation of Personal Use of Company Vehicles: What You Need to Know

Do you or your employees use union vehicles for reasons other than work? If yes, you need to be aware of the taxation rules for the personal use of company cars.

What is “personal use of a company vehicle/car”?

Personal use of a company car (PUCC) encompasses any use of a company-owned or company-leased vehicle for purposes not business-related. Examples of personal use include commuting to and from work, use on weekends or during time off, running personal errands, and use by someone other than an employee (i.e., an employee’s spouse or relative).

How do you record personal usage?

It’s important for employees to track both their business and personal use of company vehicles. Without proof that the vehicle was used for business purposes, all use of a company vehicle will be considered personal use by the IRS. Employees should keep detailed records of all business and personal use of the vehicle, including miles traveled, locations, dates, times, and the purpose of the travel.

Is personal use of a company vehicle taxed?

Yes. Personal use of a company car is considered a fringe benefit, meaning it is a form of non-cash compensation provided in addition to a person’s salary. As a fringe benefit, this value is included in the employee’s income and taxed accordingly.

How is the personal use of a company vehicle measured?

There are several methods of measuring personal use of a company car. The rules for calculating the value of fringe benefits are explained in IRS Publication 15-B.

General Valuation Method: This is the most common method for measuring the value of fringe benefits. Under this method, the value of the fringe benefit is equal to the Fair Market Value of the vehicle. The Fair Market Value (FMV) is the amount an employee would need to pay a third party to buy or lease the vehicle under the current market conditions in a given geographic location.
Cents-Per-Mile Method: The cents-per-mile rule uses the standard mileage reimbursement rate multiplied by an employee’s personal mileage to determine the value of PUCC. The standard mileage reimbursement rate for 2025 is 70 cents per mile. This method can be used if the vehicle is regularly used for business purposes or if the vehicle meets the mileage test (the vehicle is driven at least 10,000 miles during the year, primarily by employees).
Commuting-Valuation Method: This method can be used when employees are required to commute to work using a company vehicle and the personal use of the vehicle is limited to commuting and de minimis personal use (i.e., stopping for an errand on the way to or from work). The value of the PUCC is determined by multiplying each one-way commute by $1.50.
Lease Value Method: This method determines the PUCC value by multiplying the annual lease value of the vehicle by the percentage of personal miles (personal miles divided by total miles driven). The annual lease value is determined using the IRS’s Annual Lease Value Table.

Summary

If your employees use union-owned vehicles for personal use, it’s important to know that personal use of a company vehicle is a taxable benefit, and that this usage must be reported on employee W-2s. It is crucial for employees to keep detailed records of all vehicle usage for both personal and business purposes. For more information about the taxation of personal use of company cars and for assistance with reporting, please don’t hesitate to call RBT CPAs. You can count on RBT CPAs to support all of your accounting, audit, tax, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.

The Importance of Revenue Forecasting for Restaurants

Our last article discussed the rising costs facing restaurants due to factors such as increased tariffs, higher minimum wages, and the bird flu. During times of economic uncertainty, financial planning becomes even more critical to the survival of small and medium-sized businesses. This is especially true in the restaurant industry, where profit margins are already small. Revenue forecasting is a key element of financial planning, but can be difficult for restaurants due to the multitude of factors that affect consumer behavior and revenue stream. Even so, revenue forecasts are crucial tools that allow restaurants to assess and predict financial performance, optimize operations, and make informed business decisions.

Revenue forecasting is the process of estimating a business’s future revenue over a certain period using historical data, trends, economic conditions, and other factors as a basis for analysis. The first step in revenue forecasting typically looks at a restaurant’s historical data, which can be gathered through Point of Sale (POS) systems, inventory management systems, reservation systems, and other tools. The data obtained from these sources provides valuable insight into sales numbers, best-selling menu items, inventory usage, dining patterns, and more. Historical data should not be relied upon as the only source of information for predicting future revenue, as many other factors play a role. However, this data provides a basis upon which restaurant management can assess past sales activity and predict future sales.

Another component of revenue forecasting involves identifying trends, consumer behaviors, and external influences on revenue. Restaurant owners and managers should consider the impact of seasons, holidays, and weather on consumer behavior and sales. Examining these influences can help guide the revenue forecasting process as well as key operational decisions.

Also important to consider when revenue forecasting is economic climate. A range of variables—some predictable and some not—impact the economic conditions under which restaurants operate. Inflation, government policies (i.e., tariffs), natural events (i.e., bird flu, droughts, vegetable blights), and other factors can affect ingredient availability, prices, consumer sentiment, and revenue significantly.

Despite the challenges restaurants face in forecasting revenue, these forecasts remain critical to the financial planning process for several reasons. Revenue forecasts provide valuable information and help restaurants to:

Make key decisions: Revenue forecasts guide management in making important financial and operational decisions related to budgeting, ordering, renovations and improvements, staffing, and more.
Manage inventory: By studying historical data and predicting future sales, restaurants can more accurately estimate inventory needs and thus prevent wasted inventory or ingredient shortages.
Meet staffing needs: Revenue forecasts help restaurants determine which periods will be busiest, and therefore how many staff members are needed at different times to meet consumer demand. Management can then hire and schedule staff strategically to ensure the business runs smoothly without overstaffing.
Increase profitability: Optimizing inventory, staffing, and operations helps to streamline processes and increase profitability.
Improve investability: Investors are more likely to have confidence in restaurants with data-supported revenue forecasts.
Enhance customer experience: Adequate staffing, organized processes, and sufficient inventory all result in an improved experience for restaurant guests. Positive customer experiences build a restaurant’s reputation and drive growth.

Revenue forecasts are important tools that allow restaurants to gain insight into their financial performance and prepare for the future. These forecasts enable management to make informed business decisions and optimize operations using data-driven strategies. RBT CPAs is here to guide you through the process of revenue forecasting and financial planning for your restaurant. RBT’s experts are intimately familiar with the financial challenges and opportunities facing the restaurant industry. We are prepared to help you navigate the complexities of financial planning in the face of an ever-changing economic landscape. For more information on our services, visit our website or call us today.