RBT CPAs Named One of the Best Places to Work in New York

RBT CPAs Named One of the Best Places to Work in New York

For the 6th consecutive year, RBT CPAs has been named one of the Best Places to Work by the New York State Society for Human Resources Management (NYS-SHRM) and Best Companies Group.

Businesses compete for a spot on the list based on a review of its business policies, practices, work environment, demographics, and the results of an employee engagement survey. RBT CPAs – a leading accounting, auditing, consulting, and tax firm in the Hudson Valley – ranked 11th in the medium employer category, moving up one spot from last year. The company adds the award to a growing list of recognition, including the 2021 Forbes Best Tax Firms in America List; Reader’s Choice Best of the Best 2021 List; and others for best regional accounting firm and employer.

“We are thrilled to once again make the Best Places to Work in New York list,” says Managing Partner Mike Turturro. “We really do work hard to create a professional culture that fosters learning and growth. Every single RBT CPA employee makes an impact at work every single day, while being part of an organization that takes tremendous pride in being a valuable contributing member of the Hudson Valley community. We foster an open-door environment, where titles don’t matter. Instead, we focus our energies on working together to deliver excellence and exceed client expectations with every engagement.”

Winning a coveted spot on the list couldn’t occur at a better time, as RBT CPAs continues its annual recruitment process looking for future team members who will have the growth opportunity to become future partners. “We are growing across all fields and looking to expand our team with new talent looking to use their skills to contribute to RBT CPA’s and our clients’ success.” To learn about its workplace, culture, rewards, and job opportunities, visit RBT CPAs’ careers pages.

About RBT CPAs RBT CPAs LLP is one of the Hudson Valley’s largest CPA firm. The company services clients in construction, education, employee benefits, government, health care, manufacturing, and more. The dedicated professional RBT team is committed to providing outstanding service and prompt communication with clients. Learn more about its diverse offerings and award-winning service at RBTCPAs.com.

NYS PTET UPDATE: What We Know & What It Means to Your Business

NYS PTET UPDATE: What We Know & What It Means to Your Business

Important Deadline Approaching

The PTET election period is open. To opt in, submit the Annual Election Application before or on March 15. For instructions on how to make the election, visit the NYS Department of Taxation and Finance website and click “Election.”

While RBT CPAs is always ready to do whatever it takes to support clients, by law we can’t make your PTET election. However, we can file your return and pay any tax owed if you complete and submit a TR-2000.

For more information or assistance, contact your local RBT CPAs, LLP office.

What is a pass-through entity (PTE)?

When a company’s income taxes are paid solely by its owners (rather than the business), it’s considered to be a PTE. The business doesn’t pay corporate taxes; instead, its owners pay taxes on their share of business income based on their personal tax rates. As a result, business owners avoid having to pay taxes twice – once at the corporate level and a second time on the income they receive as owners.

Are all businesses considered pass-through entities (PTEs)?

No. PTEs are distinguished by which tax form they file. To be considered a PTE, an entity must file a 1065 partnership or a 1120-S S corporation return. A sole proprietorship or LLC owned by a single member and reported via Form 1040, Schedule C, or Schedule E does not qualify as a PTE.

What is a pass-through entity tax (PTET)?

In 2017, the Tax Cuts and Jobs Act (TCJA) limited the deduction business owners could take for state and local taxes on income and property to $10,000. This impacted high tax states the hardest. States realized the same limit didn’t apply to businesses at a corporate level, and the pass-through entity tax (PTET) was born.

What is the NY State PTET election?

The PTET is not automatic; businesses must opt in to take the PTET each year. The opt in election must be made by no later than March 15. If a business does not want the PTET, no action is required.

What is the benefit of opting in to take the NY state PTET?

Businesses that opt in will receive a Federal tax deduction based on the PTET paid, while their owners may be eligible for a PTET credit on their NY state income tax returns.

Is there any potential downside to opting in?

PTEs and their owners should carefully consider whether a PTET election makes sense for them. Review the potential benefit prior to making an election to avoid any unwanted tax consequences for the PTE or its owners.

Who can make the PTET election?

Only an authorized person from an eligible entity – not a tax preparer – can make the election to opt in. For a partnership, an authorized person includes “any member, partner, owner or other individual with authority to bind the entity or sign returns under Tax Law 653.” For a New York S Corporation, an authorized person includes “any officer, manager or shareholder of the New York S corporation who is authorized under the law of the state where the corporation is incorporated or under the S corporation’s organizational documents to make the election.”

How do I make a PTET election?

You must login to your New York State tax account to make the election. (For instructions and more details, visit the New York State Department of Taxation and Finance webpage.)

How does my business pay its PTET?

Businesses will need to go onto their online NYS tax filing account and initiate payment directly to the state. A tax preparer or software cannot do this unless a business owner completes a TR-2000, which provides authorization to log into the account, file a return, and pay any tax owed. RBT CPAs encourages its clients to complete and submit this form and then we’ll handle the rest when it comes to your PTET filing.

My business is in NYC. Does the NYC PTET work the same way for me and my partners?

In order to receive a NYC PTET credit, an S Corporation must have all NYC resident individual owners or a partnership must have at least one NYC resident individual owner. So even if you’re doing business or operating out of NYC, you may not necessarily benefit from NYC PTET.

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 in relation to the NYS PTET.

 

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

RBT CPA’s Ross Trapani, CPA, Admitted to the Partnership

Ross Trapani
FOR IMMEDIATE RELEASE

Ross Trapani

RBT CPAs LLP, takes great pleasure in announcing that Ross Trapani, CPA, of Lagrangeville, New York, has been admitted to the partnership. Ross will officially become a partner on January 1, 2022. He has been with the Firm since October of 2017. Ross is currently working out of the Dutchess office in the Client Service Department. Ross is the Treasurer for two nonprofits, Rebuilding Together Dutchess County and ARC of Dutchess Foundation. He is also on the Professional Development Programming Committee for the Dutchess Chamber Foundation and co-coaches his daughter’s CYO basketball. Ross grew up in Ulster County and now resides in Lagrangeville in Dutchess County with his wife and two young daughters.

Managing Partner, Michael Turturro adds, “Ross has set a wonderful example of hard work and community involvement within this firm.  He has been a great teacher to other employees and a pleasure to work with. We are so very pleased to welcome Ross to our Partner group. Congratulations! Well deserved!”

RBT CPA’s Keith Dommreis, CPA, Admitted to the Partnership

Keith Dommreis
FOR IMMEDIATE RELEASE

Keith Dommreis

RBT CPAs LLP, takes great pleasure in announcing that Keith Dommreis CPA, of Poughkeepsie, New York, has been admitted to the partnership. Keith will officially become a partner on January 1, 2022. He has been with the Firm since January of 2020. Keith is currently working out of the Newburgh office in the Tax Department. He has spent the majority of his life here in the Hudson Valley and raised his daughter and son here. He currently resides in Poughkeepsie but travels often to visit his grandchildren.

Managing Partner, Michael Turturro adds, “We are so very pleased to welcome Keith to our Partner group. Keith came to us a few years ago with an abundance of knowledge and experience. Since, he has been a driving force in the firm and our tax department. His contributions are invaluable. Many Congratulations!”

RBT CPA’s Donna Crowley, CPA, Admitted to the Partnership

Donna Crowley
FOR IMMEDIATE RELEASE

RBT CPAs LLP, takes great pleasure in announcing that Donna  Crowley CPA, of Wallkill, New York, has been admitted to the partnership. Donna will officially become a partner on January 1, 2022. She has been with the Firm since September of 2005. Donna is currently working out of the Newburgh office in the Audit Department. She is an active member of the Wallkill School District Board of Education and the audit committee which enhances her vast financial expertise. Donna resides in the Hamlet of Wallkill and her three active children keep her schedule very busy.

Managing Partner, Michael Turturro adds, “We are so elated to welcome Donna to our Partner group. Donna has been an integral part of our Audit department and an essential player in the continued growth of the firm. I am excited to watch her develop in her new role as a partner. Many congratulations! Your team is so proud of you!.”

RBT CPA’s Manager Rebecca Reynolds, CPA, MBA Joins the CFHV

FOR IMMEDIATE RELEASE

Rebecca Reynolds

RBT CPA’s Manager Rebecca Reynolds joins The Community Foundation of the Hudson Valley (CFHV) as their newest Trustee Member  and Chair of the Audit Committee. This prestigious role will allow Rebecca to join an equally committed team that is dedicated to ensuring the long-term sustainability of the organization while targeting meaningful investments to meet the needs of the community.

The Community Foundations of the Hudson Valley  works to strengthen the Hudson Valley by helping individuals, businesses, and organizations establish and administer funds that support vital causes and charities. Partnering with generous donors, they address current and emerging community needs through effective grantmaking to improve the quality of life for all. Additionally, they provide technical assistance to help nonprofits operate more effectively. Since the start of the Covid-19 pandemic, hundreds of donors have contributed to CFHV, supporting urgent local needs to help mitigate ongoing pandemic impacts.

“What an honor for Rebecca to be elected to the Board of Trustees and Chair of the Audit Committee, it’s so well earned,” said RBT CPA’s Managing Partner, Mike Turturro. “Rebecca exemplifies integrity, brilliance, and balance, she will be a remarkable addition to the board.”

“We are honored and grateful that Rebecca is joining the Community Foundations as a Trustee and Chair of the Audit Committee,” said Sally J. Cross, President and CEO of Community Foundations of the Hudson Valley. “The Community Foundations of the Hudson Valley has thrived in this region for more than 50 years with the support of accomplished and civic-minded volunteers like her.”

The dedicated professional RBT staff would like to extend a heartfelt congratulations to Rebecca as she begins this exciting and well-deserved new role. To learn more about the diverse offerings and award-winning service you can expect from RBT, please visit the RBT site. To learn more about ways you can get involved with The Community Foundation of the Hudson Valley, please visit the CFHV site.

RBT CPAs Awarded on the Forbes America’s Best Tax Firms 2021 List

Flying Geese 2021

RBT CPAs has been awarded a spot on the Forbes list of America’s Best Tax Firms 2021. This prestigious award is presented by Forbes and Statista Inc., the world-leading statistics portal and industry ranking provider.

Forbes and Statista created the award list through an independent survey of tax and accounting professionals who provided thousands of recommendations. Respondents were recruited through an online survey as well as through a carefully profiled online-access panel. Recommendations from professionals working at tax and accounting firms as well as professionals working with tax and accounting firms were considered in equal measure.

“Based on the results of the study, RBT CPAs is ecstatic to be recognized on the Forbes list of America’s Best Tax and Firms 2021,” said Managing Partner, Mike Turturro.

As community-minded, trusted business advisors and advocates, RBT’s high-value accounting, auditing, consulting, and tax services have previously earned the firm recognition as the ‘Best in the Hudson Valley’ and one of the firms to watch. RBT team members attribute the recent Forbes distinction to its strategic, innovative, and caring environment that is dedicated to making the client’s experiences remarkable.

The dedicated professional RBT staff is committed to providing outstanding service and prompt communication with clients as New York faces unprecedented economic challenges in the New Year. To learn more about the diverse offerings and award-winning service you can expect from RBT, please browse our site or contact us.

Hours, Hours, and Less Hours

Hours, Hours, and Less Hours

Excitement is building as we are getting ready to celebrate the last holidays of the year. The majority of us will be lucky enough to have two short work weeks without dipping into our personal PTO bank. When we return to our offices in January, we will return to our normal 40 hour workweek. Unless you’re an accountant, that is.

If you’re an accountant, January is the start of a whole different season reserved especially for you. The close of the holiday season means saying goodbye to holiday cheer, gift exchanges, and homemade cookies. Yes, January ushers in tax season – marked by colder temperatures (if you’re here in the Northeast), longer days, and lots of work. At the majority of accounting firms, it is not uncommon for an accountant’s work schedule to go from 45-50 hours per week up to 65-70 hours (or more) per week from January through April 15th. If you’re an accountant at a Big Four Firm – you know this to be true. The expectation that you are required to work longer hours is generally accepted as a part of the industry culture. In addition, accountants need to complete billable hours – time that can be billed to a client. Because it’s impossible to bill every minute of an accountant’s day to billable time, an accountant might need to work an hour and a half in order to be able to charge one hour of billable time. What does this all add up to? Three and a half months of long days and nights spent at most firms. Most – but not all.

Here’s where RBT CPA’s is different. As the largest CPA firm in New York’s Hudson Valley, we reject the status quo and still produce stellar work for our clients. We start our busy season in the middle of January, and from the middle of January to the middle of February we cap our total hours worked at just 50. Then from mid-February to April 15th the maximum number of hours a person is allowed to work gets capped at just 55 per week. At some other firms, 55 hours is the norm when it comes to a workweek. At RBT, a 55 hour work week is the exception for a short period of time.

Consider how valuable this work balance is when you factor in your annual salary working an average of 65 – 70 hour workweek versus a 40 – 55 hour workweek. When you do the math and break your salary down to an hourly wage, there is a sizeable earning difference between the two. At RBT, we believe a healthy, happy employee is one who has a life outside of work. We feel being able to spend invaluable time with your friends even during the busy season is key to maintaining your physical and emotional health.

Sounds too good to be true, but… it is! Contact Jclancy@rbtcpas.com to talk about opportunities to join the team.

The Best Way to Manufacturing

Fixing Manufacturing Equipment

When someone mentions artificial intelligence (AI) to you – what comes to mind?

Does a terrifying scene from Terminator spring to life, with evil robots stealing our jobs, decimating our workforce, and destroying life as we know it? Well whether you realize it or not, AI is already integrated into nearly every aspect of your life and is slated to improve your workflow, too. From relying on spam filters in your email inbox to recruiting digital voice assistance tools like Alexa to share the weather forecast, explain a new recipe, or even blast Sinatra in your kitchen while you do the dishes – you use AI. Across industries, AI is paving the way towards a more cost-efficient, sophisticated future. Let’s explore the most prominent role AI has within the manufacturing industry and why you could be missing out on huge savings if you’re not on board.

We probably don’t need to explain to you why guessing isn’t exactly a sound business strategy, but for generations, manufacturers were limited when it came to handling equipment maintenance. The reality is, many companies consistently run machines until they break and then spend a lot of money replacing systems and wasting valuable time. A revealing joint study by The Wall Street Journal and Emerson found that unplanned downtime costs industrial manufacturers an estimated $50 billion per year. Equipment failure accounts for an astounding 42% of this unplanned downtime. How much money could you save if you stopped maintaining your equipment on a fixed schedule basis or worse – guessed when it’s time for a fix? The Internet of Things (IoT) is enabling manufacturers to transform from reactive to proactive, thanks to wireless connectivity, access to inexpensive sensors, and cloud computing. By implementing AI that uses complex analysis to predict pending component failures, a manufacturing team can receive notifications automatically right to their cell phones, and the problem can be solved before it exists. By adopting predictive maintenance solutions, manufacturers can optimize assets and ultimately, save avoidable costs. Many are already reaping the benefits of predictive maintenance, in fact, according to 2020 AI stats, nearly 30% of AI implementation within the manufacturing industry goes towards improving maintenance. To start taking advantage of predictive maintenance practices, you need to equip your machines with emerging tech, like sensors, cameras, and software that can analyze data in real-time. From 3D printers and scanners to steel-cutting lasers, conveyor belts with high-resolution cameras, and thermal process sensors, smart devices enable you to collect a ton of useful data about the machines’ performance and productive lifespan. You should also plan on retraining team members so everyone is on the same page with your new strategy.

The International Data Corporation (IDC) predicts that by 2022, 75% of enterprises will embed intelligent automation into technology and process development. The same report projects that by 2024, AI will become the new user interface, and 50% of user touches will be augmented by computer vision, natural language, augmented reality, and virtual reality. AI will be seemingly invisible, yet omnipresent. We hope the economic challenges presented by 2020 do not deter your company from pursuing sophisticated AI but instead drive you to advance and adapt. At RBT, we believe maximizing the value of ever-increasing data will separate those who lead from those who lag. Please do not hesitate to contact one of our dedicated team members today to talk about the exciting and innovative opportunities to grow your business.

New York Municipal Governments and COVID-19: Important Financial and Accounting Considerations for 2021

Covid-19 - Looking Towards 2021

Eight months into the global COVID-19 pandemic, local governments in New York are faced with bad news and good news:

On one hand, a new rise in case numbers, and little movement on legislation to help municipalities weather the fiscal fallout of the ongoing pandemic; and on the other hand, the development of two vaccines and improved treatments for the virus.

Local government has a hard road ahead in 2021. Local leaders will likely have to dip into fund balance even more than in 2020, and may face yet another round of belt-tightening. A number of federal relief programs for individuals and businesses are slated to end with 2020. Late last month, the New York State Division of the Budget released its mid-year report, projecting a General Fund revenue decline of $14.9 billion and a tax receipts decline of 15.3 percent from February 2020 projections.

The non-partisan Center on Budget and Policy Priorities projects that New York will see a $16 billion decline in tax revenues for 2022, representing a 17 percent decline from pre-COVID revenue projections.

Some of 2020’s severe measures may ease the stresses a little in the coming year.

Where municipalities used retirement or separation incentives to reduce staff, they may see continuing personnel cost reductions, the goal of the incentives.

However, municipalities may still face rising personnel costs due to the pandemic’s effect on the state’s Common Retirement Fund, which pays for the state Employees Retirement System and the state Police and Fire Retirement System. The market reaction to COVID-19 and the shutdown meant a lower return on investment for the fund earlier in the year, and higher contributions from municipal employers for 2021.

The New York State Comptroller’s Office projects that the employer contribution will rise again in 2022.

Deep in local budget season, many municipalities are reckoning with what new measures they might have to consider next year.

What is a supervisor or mayor to do? Start with the basics.

Monitor budgets more frequently and more carefully throughout the year; analyze trends as you go so you can make changes, anticipate issues and not be taken by surprise.

If there is a big lesson of the pandemic, it’s the need for solid, well-thought-out budget and fund balance policies, grounded in data and based on an approach that balances the effects on services, municipal staff, and taxpayers.

A local government that has analyzed its policies, its demographics, its services and its needs can then find creative ways to economize and to generate new revenues.

We have offered suggestions over the past several weeks.

  • Develop a sound fund balance policy and plan.
  • Independent budget reviews may help guide your decisions, and help officials make non-political recommendations.
  • Consider issuing short-term debt to raise cash.
  • Consider early retirement incentives if you haven’t already done so
  • Is it feasible for your municipality to share services with a neighboring community? Combining forces could lead to savings.
  • Would an improvement district, such as a Business Improvement District, allow you to provide better services in a downtown area without raising taxes on residents outside that neighborhood?
  • Are your service fee structures and development fees where they should be? Are the people who benefit the ones paying for the services?
  • Will outsourcing your accounting services provide expert attention to your municipal books while allowing employees to better serve your residents?

Not so long ago, local government officials could get away with just passing a budget, letting things run on their own, and then perhaps, being surprised about where things stood when the new budget process began.

COVID-19 has taught us that leaders must pay more attention than in the past, and it has taught us that resilience is key to weathering difficult times. Care, close attention and sound data-based strategies are key to handling the challenges COVID-19 will continue to bring in 2021.