written by Bryce Kahler, CPA and Melinda Bucknam, CPA 

It is no secret that many businesses have been negatively impacted by the COVID-19 pandemic these past few years. A powerful tool for business owners to ease some of their financial burden has emerged: the Employee Retention Credit (ERC). This tax credit was initiated when President Trump signed the CARES Act into law in March 2020. Since then, it has been amended three separate times under President Biden with the passages of the Relief Act of 2021, the American Rescue Plan Act, and the Infrastructures Investment and Jobs Act. ERC rules have changed significantly as a result; the purpose of this article is to provide general information about the ERC, how it benefits you, and how you could qualify. 

The purpose of the original ERC provision was to encourage business owners to keep W-2 employees on payroll and reduce the number of people seeking unemployment benefits. If you have a business that has kept several employees on your payroll during 2020 and 2021, you could be eligible to benefit from this credit. The eligibility is determined on a quarterly basis based on the number of W-2 employees you have; you could potentially get a total of up to $26,000 per employee refunded back to you in cash for both 2020 and 2021 combined. If you qualify as a “Recovery Startup Business” (RSB), you can get up to $50,000 per quarter for the last two quarters of 2021. The criteria for RSB status are as follows: you started your business after February 15, 2020, average annual gross receipts are determined not to exceed $1,000,000, and you employ one or more employees. To qualify for 2020, you must meet one of two alternative tests set forth by the IRS: 1) Your business was partially or fully shut down by government order due to COVID-19; or 2)  There was a significant decline in gross receipts compared to the same quarter in 2019. It is important to note that 1099 workers do not count when you are computing whether you qualify. If you received a First or Second Draw Paycheck Protection Program loan, you could still qualify, but the credit will only be applied to the wages that are not forgiven. A “significant decline in gross receipts” is defined differently for 2020 and 2021. For 2020, your business must have seen a 50% drop in gross receipts when you compared a quarter in 2020 with the equivalent quarter in 2019. 

For 2021, the rules became easier, and you could qualify in more ways.  One of the most common ways to qualify is if for the first three calendar quarters in 2021, there was decline in gross receipts of 20% lower than the same quarter in 2019. 

Once you have determined that you are in fact eligible, you must know how to calculate the credit.  Starting with 2020 tax year, you can potentially receive a credit of up to 50% of each employee’s qualified wages paid, up to $10,000 in wages per employee, with a credit cap of $5,000 per employee for the year. For the 2021 tax year, you could receive a credit of up to 70% of each employee’s qualified wages, capped at $10,000 per quarter for the first three quarters, resulting in a credit of up to $7,000 per quarter per employee, maxing out at $21,000 per employee for 2021. 

An example for both years would help illustrate. For the 2020 tax year, assume Employee A had $2,000 of wages in one quarter and $12,000 in another. This $14,000 total would be capped at $10,000 for the year and the 50% credit would be worth $5,000. In 2021, the credit would be calculated on a quarterly basis, capped at $10,000 in wages per employee per quarter.  The same total credit would thus be $8,400, calculated as follows: $2,000 x 70% = $1,400 and $10,000 x 70% = $7,000. 

To claim the ERC, you will need to file Form 941-X. There is still time to file these for 2020 and 2021. For 2020, the deadline is April 15, 2024, for and for 2021, the deadline is April 15, 2025. It should be noted that with the passage of the Infrastructure Bill under President Biden, the ERC program expired on September 30, 2021. This limits the availability of the ERC in the fourth quarter of 2021 to only business owners who qualify as a Recovery Startup Business and match the criteria listed earlier. You are not allowed to pay current wages to claim the ERC, but you can retroactively claim it by filing the amended tax return.

It is also important to point out that the eligibility rules may differ if you have more than 500 employees.  Most majority owners with living relatives cannot claim their wages. Unlike the PPP loans, if the ERC is taken, you must reduce your deduction for wages by the amount of the credit.  This may mean that tax returns will have to be amended for both years.  As it may be apparent, there are many rules that apply to the ERC credit that go beyond the scope of this article. 

In matters like these, it is always best to seek guidance from a CPA that knows these rules well and can properly advise you. The ERC rules are constantly changing and may even have changed further by the time you are reading this article. CPAs in the profession have noticed an increase in audits related to incorrectly filed ERC forms or credits exceeding $200,000. You would not want to engage with an IRS audit on your own and would be better off avoiding it entirely. It is best to work with a CPA in the profession who monitors this topic and other tax savings opportunities closely. Hopefully you will consider this major tax benefit and use it to your advantage. 

Bryce Kahler and Melinda Bucknam are CPA’s at Bucknam & Conley Tax Advisory & CPA Firm. Visit them at: Saratogacpa.com

Written by

Marc R. Pallozzi, Esq., Matthew J. Chauvin, Esq.

Ianniello Chauvin, LLP | www.iclawny.com

Driving While Intoxicated, or DWI, is a crime in New York.  Most people know that.  In fact, most reading this article probably know someone who has been arrested and charged with DWI.  I once heard it referred to by a police officer as “the common man’s crime.”  And to a great extent, that is an accurate statement.  Most people also associate DWI with the term “drunk driving.”  But a person does not need to be drunk in order to be charged with DWI.  Most people further associate DWI with blowing into a breathalyzer.  But a person does not need to blow into a breathalyzer to be charged with DWI.  Most people think consuming water, or coffee, or food, will help sober them up enough to drive after having a couple drinks.  But – you guessed it – these things do not work either.   

While most people seem to “know” a lot about DWIs, this article is intended to provide facts that most people aren’t aware of.    

WHAT IS DWI:

In its most basic sense, DWI is being intoxicated and driving a car, at the same time.  The term “intoxicated” is defined as consuming alcohol to the point where you are no longer capable of employing the physical and mental abilities expected when operating a car like a reasonable and prudent driver. That’s what Vehicle and Traffic Law § 1192(3) says, but what does it actually mean?  There is no one size fits all formula for becoming intoxicated.  Everyone is impacted differently by alcohol.  And, unfortunately, the only way to know how intoxicated you are is to submit to some type of test, like a breathalyzer.  Nevertheless, a person does not have to submit to a breathalyzer in order to be charged or found guilty of DWI.  In fact, testimony from a police officer about a person’s condition is more than sufficient to secure a conviction at trial.  Was the driver swerving all over the road, or slurring their speech, or stumbling? Did they smell of an alcoholic beverage, did they make admissions to consuming alcohol before driving, were their eyes glassy and bloodshot?  All of these things can be used against a person in a DWI arrest.  Officers are trained to administer field sobriety tests to determine, when coupled with observations like those listed above, in the Officer’s opinion a person is intoxicated.  

WHAT ARE FIELD SOBRIETY TESTS:

Standardized field sobriety tests are a series of three divided-attention tests designed, when properly administered, to accurately determine whether someone is at or above the legal threshold of intoxication.  These tests include the Horizontal Gaze Nystagmus (HGN), the Walk & Turn (W&T), and the One Legged Stand (OLS).  Officers are trained to evaluate performance using a series of clues, or observations about the driver when they perform the tests. Two or more clues on any of the tests is a failing score. The HGN is a test where a police officer holds a pen in front of your eyes and asks you to follow the pen side to side with your eyes and your eyes only.  The officer is looking for nystagmus, or the involuntary bouncing of the eye which can be caused by the presence of alcohol in one’s system.  During the W&T a you’ll be asked to walk a straight line of heel to toe steps, turn around, and walk back.  The OLS requires you to stand on one leg, point your toe on the opposite foot and count to thirty.  While these tests may seem simple, they are much more difficult than they appear.  They are being administered on the side of busy roads, typically at night, often times in the cold, under highly stressful circumstances to the average person.  A driver’s performance on these tests also – to a great extent – determines whether they will be driving home that night or getting a ride in the back of a patrol car. 

WHAT IS A BREATHALYZER:

A breathalyzer as most people understand that term is a handheld device that measures a person’s blood alcohol level by using a breath sample.  You blow into the device and it reads back a number.  This device is usually administered on the side of the road by a police officer.  Contrary to what most people understand about DWIs, though, the reading this device provides cannot be used against a person in a DWI prosecution.  The handheld devices are not calibrated, nor are they that accurate.  What they can be used for, however, is to say “yes, a person had alcohol on their breath,” or “no, there was no alcohol.”  A driver is not obligated to submit to a breathalyzer on the side of the road.  The consequence for not submitting to one is a 2-point traffic ticket.  This is not the same thing as refusing to submit to a chemical test. 

WHAT IS A CHEMICAL TEST:

A chemical test is a calibrated, scientific instrument used to determine the alcohol content of a person’s blood.  This is typically done in one of two ways: a much larger machine back at the police station, or a blood sample taken by a medical professional.  A person arrested on suspicion of DWI may be offered either choice, but only after they have been arrested.  Prior to submitting to a chemical test, a driver will typically be read a series of warnings called DWI Refusal Warnings.  This is because a failure to submit to a chemical test may result in the automatic revocation of your driver’s license, and the law requires you to be made aware of that consequence.

Contrary to popular belief, driving is a privilege, not a right.  When you become a licensed driver through DMV, you agree to be bound by the rules and regulations of DMV, whether you like it or not.  Contained within those regulations are the consequences for refusing to submit to a chemical test, which can be a one-year revocation of your driver’s license. Drivers who refuse to submit to a chemical test are entitled to a hearing in front of a DMV Administrative Law Judge.  If the driver loses that hearing, their license is revoked.  If the driver wins that hearing, their license is reinstated. 

If a driver submits to a chemical test, that result will be used against them, and if that result is a .08 BAC or higher, it results in a separate criminal charge, which does not require any proof whatsoever that the person’s driving was actually affected at all by consuming alcohol or that they exhibited any characteristics associated with being intoxicated.  Yes, you can be convicted of DWI without being drunk.  As stated above, alcohol affects everyone differently. You may “feel” fine, you may even be acting fine, but if your blood alcohol level comes back at a .08 BAC or higher, you are legally intoxicated.  

WHAT ARE THE CONSEQUENCES OF A DWI CONVICTION:

There are serious consequences if you are convicted of a DWI.  As indicated above, DWI is a crime.  A first time offender convicted of DWI has been convicted of an unclassified misdemeanor, which carries with it up to a one-year jail sentence.  Additionally, those convicted of a first-time DWI will typically be required to pay a fine at or around $1000, attend a Victim Impact Panel, participate in a seven-week course through DMV called the Impaired Driver Program, get hit with a $750 assessment fee through DMV, lose their license, and often times lose their auto insurance.  A second conviction in a ten-year window is a Class E Felony.  The consequences of a felony DWI include up to 4 years in state prison, higher fines, and longer revocation periods.  Three convictions in a 10 year window is a Class D Felony, which carries even higher fines, potentially lifetime driver’s license revocation, and up to seven years in state prison. If you drive intoxicated and cause the death of another person, you can receive up to a 25 year prison sentence.  In some extreme cases, you can be convicted of murder and spend 25 years to life in prison. 

WHAT HELPS SOBER SOMEONE UP?

In all our years of searching and training, we have found only one thing that will sober up an intoxicated person.  It is not water, it is not coffee, it is not eating a good meal before consuming alcohol.  Indeed, none of those things will help lower your BAC.  The only thing in the world that will help sober up a person who is intoxicated is time.  Your body needs to be able to process the alcohol that has been consumed, and there is no way to expedite that process.  Your body needs time.  The more alcohol, the more time.  You may help reduce the effects of a hangover by drinking water.  You may give yourself a little bit more energy to focus by drinking coffee.  You may feel less dizzy or tired by eating a good meal.  But you are doing nothing to reduce your BAC.  Time is the only way to bring that number down. 

CONCLUSION: 

DWIs are always complicated.  In fact, they are the most complicated category of criminal cases that exist in this state.  There are many moving parts in the criminal court and with DMV, including both scientific and legal analysis, and the consequences can be severe.  This is why it is important to have the name and number of an experienced DWI attorney saved in your phone.  Experienced DWI attorneys know how to protect your rights and interests before you get charged.  While we hope none of our readers are ever charged with DWI, we are ready and prepared to protect you should our phone ring.   

written by Jordan Dunn

Modern communities are a balancing act. For one to thrive, both day and night, it takes the right equation of established residential and commercial entities.

As consumers of residential properties, many of us readily understand the markets and trends that are connected to this side of community life. However, how many of us truly understand the markets and trends in the commercial (sometimes referred to as industrial) sector?

Where Does Our Region Stand?

With regards to growth and prosperity, Saratoga County remains at the front of the pack in the Empire state. You would be hard-pressed to drive through Clifton Park, Malta, or Wilton without seeing a construction project underway or an existing structure being re-imagined and renovated into a new kind of space. While some may balk our growth, as William S. Burroughs said, “When you stop growing you start dying”.

The Game

From big corporations like Amazon and Logistics One, to smaller 3rd party suppliers and distributors, much of the demand in the area is driven by online commerce trends. But that is where their similarities end. Depending on the company, their requirements range so widely that building the ecosystem to support them is a balancing act.

Some of the variables that come into play include size of the space needed; cost per square foot; availability; zoning policies; and community input. It's a complicated process not for the faint of heart. 

For more insight, we spoke to some local experts in the field.

Size

Depending on the company, these businesses can require anywhere from “15,000 or 20,000 square feet to 150,0000 sq ft.” said Tom Savino of CBRE Albany.

Tom Roohan of Roohan Reality said it can range anywhere from 30,000 sq ft. to 1 million sq ft. “Which is essentially 20 acres under one roof, if you can picture it”.

Regarding pricing, “It depends on the industry,” said Roohan. “As there are so many different kinds of companies utilizing these spaces, price levels depend on what kind of activity will happen in the space.” For example, it would cost more to have a space that is equipped to become a food storage facility than a warehouse that holds plywood and similar products.

Savino echoed the same sentiments.

The bottom line is there is no magic number when it comes to this sector. The needs of companies are so vast that a median cannot readily be identified.

Availability

When it comes to availability, the sector is divided into two categories, existing spaces & ground up construction.

Existing Space

According to Savino “A lot of the existing buildings here are of an older generation.” This is a factor that contributes to the current trend of warehouse owners putting up buildings on speculation (a landlord looking to lease for a tenant). 

Savino commented that “prior to the current demand there wasn't speculative warehouse space that was put up. Buildings are going up now without a specific tenant in mind…This may not last for much longer depending on the eventual flow of inflation that we are currently seeing taking a rise.”

Ground Up Space

So, once the “good products of the old generation are gone, of which many already are, that is when people take a look at building new,” said Savino.

However, when it comes to new construction “costs are high, and financing is becoming more expensive, so as those two affect the market, those will impact an investor or landlords’ incentive to put up the building,” further explained Savino.

Demand

Although there was some pent-up demand during covid, “...as we came out of covid that demand was still there, but now with inflation and what not, it is yet to be seen if that will impact the new construction or speculation rates in the area.” explained Savino. “One thing to keep in mind, is that here in the Capital Region, we are in a real estate area that is usually very stable throughout the years. Unlike big metro areas, it's more of a steady climb or decline.”

Zoning and Community Impact

“A lot of what can hold a space back is infrastructure and preplanning elements,” said Savino.

In the Capital Region, like any place, there are only so many spaces that have the correct zoning, or ones with the right utilities already included. Additionally, even if a place may be correctly zoned, a new build can be impacted if the community is not in favor of the incoming company or planned purpose of the facility.

Bottom Line

“A company that is looking to come into this area, that knows they have to build something specific; they are gonna take a look at zoning, approval process, locations, interstate” said Savino.

It is fair to say that we have only just scratched the surface of all the numerous elements and factors that play into development of Industrial and Warehouse Sectors.

While keeping these key details in mind, we knew it necessary to speak to a few more experts to accurately lay out what this sector may look like in the future. For this we had the fortunate opportunity to speak with two notable members of the development community, the Galesi Group and the DGC Development Co.

Galesi Group

The Galesi Group has been in the business since 1969 in upstate New York and David Buicko, COO has seen over 40 of those. To take advantage of his numerous years of expertise we delved into a bit of Q and A with this long-time member of the Capital Region.

Q: How would you describe the current climate of this sector?

A: It’s one of the strongest I’ve ever seen, with close to 100 percent occupancy rates here in the Capital Region.

Q: What does the portfolio of your own company look like?

A: Our group has over 10 million sq footage of industrial space in our portfolio. This means that we oversee a large percentage of the market share in this region as a whole.

Q: If this sector continues to expand, what will that mean for competitors?

A: In this industry, you will always see new players; meaning there is certainly no monopoly when it comes to developers.. For example there are a lot in Clifton Park and Saratoga that are expanding right now…If a market is strong there will always be growth.

Q: How do you foresee the current inflation numbers we are seeing impacting the industry?

A: Yes, we are seeing prices going up. And, Yes, it costs us more to build the building..And Yes, it may reduce some of the people on both sides of this…Ultimately, though, we are rather confident that the demand in this sector will continue to stay positive.

Q: Are there any future plans or needs that our area will have to consider moving forward in regards to this sector?

A: As a region, as a nation really, we have to continue to invest in our roads and rail infrastructure. Without these, logistics can't happen. Fortunately for the Capital Region, our transportation sector is doing well, but that doesn’t mean we can’t continue to plan for the future and that means we must continue to invest wisely in the now.

DCG Development

For insight on Saratoga County specifically, we spoke to Donald MacElroy, Vice President of the DCG Development Co. DCG has been has been in the business for over 50 years and can be considered a stable player in this sector in Saratoga County, with one of their most notable portfolio pieces being Clifton Park Center, located in the hub of Clifton Park. We were also able to delve into a bit of Q and A with Mr. MacElroy.

Q: How would you describe the county’s development over the years?

A: Saratoga county, on an overall basis, has seen sustained and continuous growth over the years. As a county, it has good taxes, a good approval process and a great local development team with the SEDC.

Q: What do you think has driven some of this long term positive development?

A: I would like to think that the new development of Global Foundries is a good driving force here… Distribution is also certainly of a fair amount of development in the area here at the moment. Exit 16 and 10 are especially seeing a lot of development, which makes sense as they are well positioned for a wide market and I think we will see that continue.

Q: As commercial retail space is a large piece of your portfolio, how would you currently describe the climate in that sector?

A: It’s certainly experiencing some transitions; we saw a lot of that happen due to covid. I think over time, it will shake itself out however…Online business will certainly continue, but Big Box stores are changing modes of operation, and I think because of that they will stick around. They are getting smart about the transition.

Q: Do you have any predictions for this sectors future?

A: I wouldn’t venture to say what anything will look like in the years to come. Everything is changing and reshaping itself right now.

A Sector Worth Watching?

It’s always easier to follow industries and sectors that are important to us, or impact our daily lives directly. The Commercial and Industrial Sectors may not be ones that initially come to mind when we first check out the morning news, but they are sectors that impact our daily lives whether we consciously recognize it or not. In the years to come these sectors will only have an increasing impact as it is a sector that is seeing high rates of demand. Will you be one to follow along with its developments?

written by Jordan Dunn  |  Photo provided

Founded by Charles Amodio, Partner at Ferraro Amodio & Zarecki CPAs, Meeting Point was started with the intention of bringing seasoned professionals in the local area together, in order to help facilitate connections based on specific industries.

“Working in a forensic accounting firm, we get a lot of referrals.
I saw an opportunity to expand and extend the experience I was having at my own office to those in my local communities and beyond.” said Amodio. 

With its first chapter in Albany commencing in the fall of 2019, the group has now added a chapter in Saratoga and another in the Hudson Valley to its ranks. 

Meeting on a regular basis, the group helps local professionals in niche areas of accounting, law and wealth management connect, to learn more about one another and hopefully facilitates lasting professional relationships. Though the group began quite near the start of covid, Amodio said that “the advances in remote working styles and meetings, really helped to get us through that different period of time while still staying connected”. Now that the world has returned to a semblance of normalcy, the groups utilize a mixture of traditional meetings where members are often asked to give small presentations or participate in group discussion and activities, as well as participating in a number of social outings and events throughout the seasons. 

Is Meeting Point Right for You?

We had the opportunity to speak with a member of Meeting Point’s Membership Committee, Ryan Keleher of Bond, Schoeneck & King PLLC who discussed a little bit of the group's credentials when it comes to taking on new members. 

“We really are looking for people who are interested in creating organic, professional relationships with top experts in their fields. This isn’t a business card exchange type of group. This is for those looking to get to know people not just on a professional level, but on a character level as well,” said Keleher. 

In addition to positive intent, the group focuses on bringing in those who have reputable knowledge in a niche area of their industry. Oftentimes this means that the membership committee will strategically identify what kind of areas of focus have less representation in the group and they try to fill them accordingly. 

At this moment in time the chapters are actively trying to fill several membership positions in each of their chapters. There is also no membership fee at this time. 

What does the Future Hold? 

“We are relatively new and still evolving,” said Amodio. “Each chapter is really still at an infancy stage so we are open to whatever potential avenues and opportunities may come our way down the line”.

This take it day by day approach seems to be working positively for the group, if the outlook of one if the opinion of Kaitlin Russitano of ADP, a member of the Saratoga chapter, is any indicator.

“Meeting Point has been a tremendous resource for my career within the Capital District. I found that fellow members were eager to find out more about me and to offer whatever help that was needed.” said Russitano

Russitano continued on to explain how “when it comes to helping my clients I know I have a strong group of highly qualified professionals I’m comfortable sending them to. I truly look forward to the monthly meetings and group events that are planned throughout the year.”

Connect with Meeting Point

Sounds like the right opportunity for you?
Those interested are encouraged to visit meeting-point.us/contact-us for more information.