4Thought Blog

The labor shortage in the manufacturing sector has been well documented. As of October 2021, the number of workers in the industry had declined by almost 400,000 from pre-pandemic levels. According to the National Association of Manufacturers, nearly 2.1 million manufacturing jobs could be open by 2030.

Will this worker shortage adversely affect your manufacturing company, or has it already done so? You don't have to sit idly by while the labor gap continues to grow. One way to entice more workers is by offering an impressive slate of employee benefits. Doing so can help you attract and retain top talent.

Unlike some fishing enthusiasts, nonprofits don't usually "throw back" contributions from the small fry in its donor base. Modest donations, after all, add up. But landing some big fish can make a whale of a difference to an organization's financial security.

Unfortunately, major donors don't usually knock on a charity's door and hand over millions of dollars. You have to work to find them and then earn their trust and confidence. Here are seven practical suggestions:

The construction industry has been facing a labor shortage for years. Although there are various ways to tackle the challenge, one approach to keep in mind is expanding your hiring pool to, in part, avail yourself of a potentially valuable tax break: the Work Opportunity Tax Credit (WOTC).

The WOTC is available to employers as an incentive for hiring individuals who receive government assistance and reintroducing them into the workforce.

Depending on the targeted group to which a worker belongs, as well as the wages earned, the maximum credit can range from $2,400 to $9,600 per new hire. So, it's well worth determining whether the tax credit could help your construction company.

The IRS recently announced it will be increasing the standard mileage rate for qualified business drivers for the second half of 2022.

The adjustment reflects rising costs at the gas pumps this year. It's accompanied by a hike in the standard mileage rate for medical expenses for all taxpayers and moving expenses for active-duty military personnel.

Employee stock ownership plans (ESOPs) provide tax-saving opportunities for business owners who want to cash out and transfer ownership to employees without immediately giving up control of the business.

However, valuing stock held by an ESOP is an ongoing challenge for the fiduciaries who administer them, especially when the sponsoring company is privately held.

The labor market is tighter today than it has been in decades, and many employers are going above and beyond the ordinary to attract and retain top talent.

One idea for your organization is to sweeten the pot of fringe benefits. A cafeteria plan, for example, allows employers to offer more benefits to employees, generally at a reasonable cost.

This type of plan also provides tax-favored perks to employees under Section 125 of the tax code. (This is why cafeteria plans are sometimes called Sec. 125 plans.) Plus, payments are tax-deductible by employers.

The global events of the past two years have had a profound impact on real estate, from the disruption to office real estate to the rise of secondary markets. In terms of sectors that have seen positive growth, industrial and multifamily have emerged as clear frontrunners.

Multifamily owners and investors have benefited from the shift to remote and hybrid work environments as employees sought homes with more space and amenities, and industrial owners and investors benefited from an increase in e-commerce demand.

Now these sectors are in a proverbial horse race as they compete for labor, materials and investment. Investors wondering which will come out ahead should be aware of current trends in both sectors.

If your manufacturing company is like many others in the industry, you're having difficulty finding top-notch new hires to expand your workforce as well as to replace employees who are retiring or quitting. At the same time, you'd like to reduce your tax liability for 2022.

Practical solution: Kill two birds with one stone by hiring workers from certain "target" groups. This move can help close the skilled labor gap, and you may qualify for a tax credit — the Work Opportunity Tax Credit (WOTC) — at the same time. What's more, if your company employs certain teenagers during the next few months, it may be in line for a special "summertime" version of the WOTC.

A patron speaks with the restaurant host, either to confirm a reservation or ask if there’s a table available. Ideally, the host calls upon a server who then leads the patron to a table and takes their order.

It’s a system that worked since the dawn of the U.S. restaurant industry — accounting for 90% of most restaurants’ revenue pre-pandemic — until it didn’t. The single revenue stream model was derailed by COVID-19 related closures, capacity restrictions and transmission concerns.

Restaurants were forced to get creative and many attribute their survival to diversifying their revenue streams. They launched ghost kitchens, scheduled deliveries and assembled meal kits. Though sit-down dining is once again a possibility, many restaurants continue to engage customers, compensate for staff shortages and increase agility by maintaining multiple revenue streams.

Revenue generated by 501(c)(3) organizations is generally exempt from federal income tax. But in some cases, your nonprofit may incur unrelated business income tax (UBIT) on revenue.

 The good news is your annual tax return may offer some relief in the form of deductions. The list isn't as long as the "ordinary and necessary business expenses" for-profit entities can deduct, but here are six common nonprofit deductions to know about: