Industry Alert: Spending bill passed through the House of Representatives

WOTC, EZs, IEC Extension Through 2020; Disaster Relief Included in Tax Title Amendment to Appropriations Bill

Spending bill passed through the House of Representatives and is now at the Senate to be voted on.

[Florence, SC] The House of Representatives voted 297-120 this afternoon to pass a domestic spending package (H.R. 1865) which includes a tax credit package, sending the legislation on for a Senate vote before government funding expires at midnight Friday. This package marks the first step of a bipartisan agreement. President Donald Trump is expected to sign the measure into law.

The bill includes a one year extension through 2020 to the Work Opportunity Tax Credit (WOTC), Indian Employment Credit (IEC), and Empowerment Zones (EZs). The amendment made in Section 51(c)(4) shall apply to individuals who begin work for employers after December 31, 2019.

The spending bill includes a $2.5M increase in WOTC funding for FY 2020. The increase in funding will help with the administration of the Work Opportunity Tax Credit, reduce backlog at the state level, and provide provision of technical assistance and staff training.

Disaster relief for Hurricanes Florence and Michael and the 2018 California Wildfires is also included within the bill, which would provide tax relief to victims and businesses located in federally designated disaster zones. Businesses located within a disaster zone may received up to $2,400 in tax credits per retained employee.

“Synergi Partners is extremely pleased Congress has included WOTC, Federal Empowerment Zones, Indian Employment and disaster relief credits in this legislation. Additionally, Congress made the ones that expired retroactive. We thank the members of Congress, our valued clients, our trade association NEON and our dedicated team at Synergi for everyone’s contribution to this successful renewal effort,” stated Jim Brown, Synergi Partners CEO.

To read the proposed bill in its entirety, click here.

 

About Synergi Partners:

Comprising of tax credit veterans with many years of experience serving clients of all sizes and in virtually all industries, Synergi Partners specializes in helping employers take advantage of federal and state tax credit programs, as well as disaster relief incentives, as well as research and development tax credits.

With an executive team made up of thought leaders who have made significant contributions to the tax incentives industry, Synergi Partners’ main goal is to provide the best service available and to achieve maximum value for its clients.

Media Contact:

Vanessa Tyndall Director of Marketing Phone: (256) 504-5635

vtyndall@synergipartners.com

 

Action Alert: Restaurant Tax Depreciation

[Tallahassee, Fla] The National Restaurant Association and fellow restaurateurs need your help. Over the next three weeks, Congress is finalizing legislative measures they aim to pass by the end of the year. Unintentionally, the 2017 tax reform bill left improvements to your restaurant with a 39-year depreciation period instead of the 15-years Congress intended. They need to hear from constituents how critical it is that those bills fix the restaurant depreciation tax glitch.

Why this is an issue:

Can you imagine eating in a restaurant that hadn’t been upgraded since 1980? What’s more, you are ineligible for one of the biggest benefits of the new tax law: 100% bonus depreciation for improvements from 2018 through the end of 2022. Bills have been introduced in both the House and Senate to fix this mistake. We need you to ask your Members of Congress to include the fix into any legislative package moving by the end of the year.

The solution:

Bipartisan legislation, the “Restoring Investments in Improvements Act” (S.803/H.R.1869), would restore the 15-year improvement depreciation period for “Qualified Improvement Property” (QIP) and also restore temporary bonus depreciation for your restaurant.

How you can help:

Click  to take action and tell your lawmakers to fix this issue by passing the “Restoring Investments in Improvements Act” (S.803/H.R.1869) by the end of this year.

TAKE ACTION

Alert: Save VISIT FLORIDA Funding

[Tallahassee, Fla] As you well know, VISIT FLORIDA must be reauthorized and fully funded in order to ensure that the hospitality industry continues to provide economic benefit the state needs.

The Senate is advancing a bill that would reauthorize VISIT FLORIDA, and Rep. Ponder in the House filed HB 213 to reauthorize VISIT FLORIDA until 2028, but his bill has not been placed on the agenda of the House Workforce Development & Tourism Subcommittee‘s last two meetings. Bills must be heard in both the House and the Senate in order for VISIT FLORIDA to have a chance to be reauthorized.

Unless both the House and Senate bills are passed through their respective chambers, VISIT FLORIDA will cease to exist on June 30, 2020, and Florida’s economic landscape will change forever.

Here’s how you can help:

Click the links below to tweet to Representatives La Rosa and Plasencia and urge them to place HB 213 on the House Workforce Development & Tourism Subcommittee’s agenda. Without a hearing in the house, there will never be an opportunity to demonstrate the value VISIT FLORIDA brings to the state and our communities.

Tweets & Click to Tweet Links for Rep. La Rosa

  • Tourism promotion keeps FL’s taxes low for residents. Visitors generate revenue so residents don’t have to pay more in taxes. Rep. La Rosa (@larosamike) put HB 213 on the House Workforce Development & Tourism Subcommittee agenda. #SaveVisitFlorida
  • Floridians don’t have to pay a state income tax thx to revenue generated by visitors to our state. We need to reauthorize & fully fund @VISITFLORIDA to keep it that way. Rep. La Rosa (@larosamike) put HB 213 on the House Workforce Development & Tourism Subcommittee agenda.
  • No state tourism promotion = loss of state revenue = fewer jobs = raising taxes on FL residents to pay for programs & services in the state budget. Rep. La Rosa (@larosamike), please put HB 213 on the House Workforce Development & Tourism Subcommittee agenda.
  • Without tourism and tourism promotion, every FL household will pay an additional $1,549 in taxes/yr to maintain our current level of services. Rep. La Rosa (@larosamike), put HB 213 on your next agenda. Reauthorize & full fund @VISITFLORIDA!
  • Tourism promotion helps generate $5.5 billion in local tax revenues that our communities use to pay for infrastructure, education, public safety & more. Rep. La Rosa (@larosamike) put HB 213 on the House Workforce Development & Tourism Subcommittee agenda. #SaveVisitFlorida
  • FL visitors mean no state income tax, lower tax base, economic opportunity & 1.4 working Floridians. Tourism & tourism promotion helps to make it happen. Rep. La Rosa (@larosamike) put HB 213 on the House Workforce Development & Tourism Subcommittee agenda. #SaveVisitFlorida
  • Keep powering FL’s economy thru tourism promotion. Tourism brings business & opportunities into the state, which means no state income tax. Rep. La Rosa (@larosamike), please put HB 213 on the House Workforce Development & Tourism Subcommittee agenda. #SaveVisitFlorida
  • 3+ BILLION in state sales tax collection can be directly attributed to purchases made by visitors to FL. We need to reauthorize & fully fund @VISITFLORIDA to prevent a state income tax. Rep. La Rosa (@larosamike) put HB 213 on your subcommittee’s next agenda.
  • Tourism is FL’s top economic driver. Our communities & local businesses rely on out-of-state visitors and the revenue they bring. Rep. La Rosa (@larosamike), let us show you the value and benefits @VISITFLORIDA provides by putting HB 213 on your next agenda.
  • The FL Legislature’s own economist says, “most recent sales tax forecast relies heavily on strong tourism growth.” Tourism growth = tourism promotion = @VISITFLORIDA. Rep. La Rosa (@larosamike) put HB 213 on your subcommittee’s agenda. #SaveVisitFlorida
  • FL’s chief economist says that a heathy Florida economy relies on ensuring that “no events that have significant repercussions affecting tourism” occur. Rep. La Rosa (@larosamike), our state budget revenue relies on @VISITFLORIDA. Put HB 213 on the agenda.
  • FL’s chief economist: “Currently, tourism-related revenue losses pose the greatest potential risks to the economic outlook” of the state. @VISITFLORIDA helps fund our state budget. Rep. La Rosa (@larosamike), please put HB 213 on your subcommittee’s agenda. #SaveVisitFlorida

Tweets & Click to Tweet Links for Rep. Plasencia

  • Tourism promotion keeps FL’s taxes low for residents. Visitors generate revenue so residents don’t have to pay more in taxes. Rep. Plasencia (@CoachP_CHS) put HB 213 on the House Workforce Development & Tourism Subcommittee agenda. #SaveVisitFlorida
  • Floridians don’t have to pay a state income tax thx to revenue generated by visitors to our state. We need to reauthorize & fully fund @VISITFLORIDA to keep it that way. Rep. Plasencia (@CoachP_CHS) put HB 213 on the House Workforce Development & Tourism Subcommittee agenda.
  • No state tourism promotion = loss of state revenue = fewer jobs = raising taxes on FL residents to pay for programs & services in the state budget. Rep. Plasencia (@CoachP_CHS), please put HB 213 on the House Workforce Development & Tourism Subcommittee agenda.
  • Without tourism and tourism promotion, every FL household will pay an additional $1,549 in taxes/yr to maintain our current level of services. Rep. Plasencia (@CoachP_CHS), put HB 213 on your next agenda. Reauthorize & full fund @VISITFLORIDA!
  • Tourism promotion helps generate $5.5 billion in local tax revenues that our communities use to pay for infrastructure, education, public safety & more. Rep. Plasencia (@CoachP_CHS) put HB 213 on the House Workforce Development & Tourism Subcommittee agenda. #SaveVisitFlorida
  • FL visitors mean no state income tax, lower tax base, economic opportunity & 1.4 working Floridians. Tourism & tourism promotion helps to make it happen. Rep. Plasencia (@CoachP_CHS) put HB 213 on the House Workforce Development & Tourism Subcommittee agenda. #SaveVisitFlorida
  • Keep powering FL’s economy thru tourism promotion. Tourism brings business & opportunities into the state, which means no state income tax. Rep. Plasencia (@CoachP_CHS), please put HB 213 on the House Workforce Development & Tourism Subcommittee agenda. #SaveVisitFlorida
  • 3+ BILLION in state sales tax collection can be directly attributed to purchases made by visitors to FL. We need to reauthorize & fully fund @VISITFLORIDA to prevent a state income tax. Rep. Plasencia (@CoachP_CHS) put HB 213 on your subcommittee’s next agenda.
  • Tourism is FL’s top economic driver. Our communities & local businesses rely on out-of-state visitors and the revenue they bring. Rep. Plasencia (@CoachP_CHS), let us show you the value and benefits @VISITFLORIDA provides by putting HB 213 on your next agenda.
  • The FL Legislature’s own economist says, “most recent sales tax forecast relies heavily on strong tourism growth.” Tourism growth = tourism promotion = @VISITFLORIDA. Rep. Plasencia (@CoachP_CHS) put HB 213 on your subcommittee’s agenda. #SaveVisitFlorida
  • FL’s chief economist says that a heathy Florida economy relies on ensuring that “no events that have significant repercussions affecting tourism” occur. Rep. Plasencia (@CoachP_CHS), our state budget revenue relies on @VISITFLORIDA. Put HB 213 on the agenda.
  • FL’s chief economist: “Currently, tourism-related revenue losses pose the greatest potential risks to the economic outlook” of the state. @VISITFLORIDA helps fund our state budget. Rep. Plasencia (@CoachP_CHS), please put HB 213 on your subcommittee’s agenda. #SaveVisitFlorida

Florida ProStart Receives $138,781.94 From Whole Foods Market

[Tallahassee, Fla] Florida ProStart raised $138,781.94 on Oct. 17 in partnership with Whole Foods Market Florida stores. As part of the grocer’s quarterly Community Giving Day, 5% of the day’s net sales were donated to Florida ProStart to better serve high school students in the vicinity of Whole Foods Market stores statewide by furthering their education and training in the foodservice industry.

“This donation from Whole Foods Markets will have a tremendous impact on Florida ProStart students as it will allow us to offer over 50 more scholarships in the Sunshine State,” said Laura Rumer, Director of the Florida Restaurant & Lodging Association Educational Foundation (FRLAEF). “Florida ProStart is in 238 schools around the state, helping high school students get a solid start in an incredible industry filled with opportunity for advancement. We look forward to finding more ways to partner with Whole Foods Markets as we continue to promote hospitality education in Florida.”

Whole Foods Markets hosts several Community Giving Days per year, offering customers the opportunity to make a difference through their regular grocery shopping. Florida ProStart was chosen as the third quarter nonprofit in August of this year, and 29 Whole Foods Market stores around Florida participated in the event. Money raised through the October Community Giving Day will be used to bolster ProStart scholarships as well as for ProStart kitchen grants.

Each year, FRLAEF gives out more than $40,000 in scholarships and awards $80,000 in mini grants to schools throughout the state. Additionally, one school is selected each year to receive a $50,000 kitchen remodel, and the 2019-2020 grant was awarded to Coral Shores High School last month.

Hospitality Industry Workers Honored at FRLA Pinellas ROSE Awards

[Clearwater, Fla] Last Wednesday, Oct. 9, over 160 people gathered at the Sandpearl Resort in Clearwater Beach for the Pinellas Chapter of the Florida Restaurant and Lodging Association’s (FRLA) inaugural ROSE Awards. The ROSE (Recognition of Service Excellence) Awards honor hospitality industry employees in the region dedicated to excellent customer service. Area hotels, vacation rentals and restaurants nominated 33 individuals from Pinellas County to acknowledge those making a difference in the local hospitality community. Last week’s winners each received a bouquet of a dozen roses, an award pin, certificate and a crystal award.

“These incredible men and women represent just a small fraction of the outstanding hospitality employees in the Tampa Bay area,” said Eric Waltz, General Manager of the Sandpearl Resort and ROSE Award Chairman. “Our region’s hospitality workers are what make the biggest difference and keep guests coming back. We are thrilled to be able to honor them and their hard work.”

The 2019 ROSE Award winners are are:

Lina Gomez, Retail Attendant at the Don Cesar Hotel
David Kent, Activities Beach & Pool Attendant at the Sandpearl Resort
Michael Kilmer, Housekeeping: Window Cleaner at the Opal Sands Resort
Amy Scott, Opening Server at Village Inn Restaurant
Danielle Wainwright, Sales System Administrator at the Hyatt Clearwater Beach

For more information about the ROSE Awards, contact FRLA Pinellas Chapter Regional Director, Dannette Lynch at 727-642-3404 or dannette@frla.org.

$15 Minimum Wage: Don’t Believe a Promise that Can’t Be Kept

How $15/hour minimum wage will hurt the people it’s supposed to help.

A $15/hour minimum wage grabs attention. It promises to address exploitative wages, to lift the impoverished into the middle class, and to fight income inequality. And for warm-hearted, well-meaning citizens like you and me, these are good things. There is only one problem: these promises cannot be kept. A $15/hour minimum wage will hurt its beneficiaries more than it will help them.

Full disclosure: my wife and I own a profitable, single-location restaurant with about 30 employees, and so you might think we are biased against a $15/hour minimum wage on principle. If you think that, you are wrong. We sincerely care about our team. We want them to thrive. Our full-time servers earn $50k-$60k annually after tips. The kitchen earns between $10-12 per hour, but overtime allows most to earn about $40k per year. These are not exploitative wages.

As proposed and without other business adjustments, annual income for our servers will jump to about $60k-$75k, and the kitchen will see about $55k. As business owners, we would support a $15/hour minimum wage if it did not hurt the team or put the business at risk. Unfortunately though, there is just not enough money in our business to afford the increase in labor costs. In order to keep the business open and our staff employed, we will be forced to adapt in ways that will ultimately hurt our team. Here are the changes that a $15/hour minimum wage would force upon our business:

 

Overtime will be prohibited.

$22.50 for overtime will just be unaffordable.  With 12 hours of operation daily, most full-time employees will only be permitted three 12-hour days per week. Employees will make more per hour but will make about 20% less per week. To avoid an income reduction, they will probably take a second job, if they can even find one. They will be challenged to juggle the scheduling demands of two employers, and they will lose valuable time commuting between jobs.

 

We will hire more (mostly part-time) employees.

Assuming the economy does not falter, we will need to cover the lost overtime labor. Part-time employees will afford us more flexibility to cover peak hours and to avoid overtime risks. Fewer full-time positions will be available for those who want them.

 

We will move to a tip-included pricing model.

Dining room employees already earn more than our kitchen team, and the current proposal will make it worse. To fix this, we will increase our menu prices to include tips. Customers will then be discouraged from tipping further. Servers will receive a wage above the $15/hour minimum but less than the $25-$35/hour they make now. The difference will be redirected to back-of-house labor costs. Servers will lose all rewards they receive for outstanding service.

 

We will aggressively cut hours during slow shifts.

Today, server income varies according to sales, and we have enough profit to play it safe by not sending our team home too early. After these changes, though, we will be forced to cut shifts earlier and more often, putting further income pressure on employees who will already be earning less.

 

We will increase prices even further.

Our modeling indicates the above measures will hold back about half of the cost increases. The remaining costs are more than our entire profit. So we will need to raise prices further. Unfortunately, customer visits may just decline proportionally, resulting in lower sales and a shrinking labor force.

 

We will delay opening new locations.

We are currently searching for our second location, but the uncertainty of how successful we will adapt to the new business environment of a $15/hour minimum wage gives us pause. We cannot contribute to a growing economy if we are not certain we can make money.

 

 

Admittedly, this entire commentary is an anecdote of a single business, but I assure you our business is not unique. Thousands of others look just like us, and we are all going to face the hard choices I have outlined here if a $15/hour minimum wage happens.

If you still want a $15/hour minimum wage, the truth is, the sky will not fall. Demand for good food will survive this change, and those restaurants with a good head for business will find a way to adapt and survive, and so will the employees. The question is, though, will it be worth the trade-offs?

 


This op-ed was written by FRLA Northeast Chapter member Jeffrey Schofield, who is the Founder, Owner and Operator of Blue Orchid Thai Cuisine in Jacksonville. It appeared on Florida Politics and in the South Florida Sun-Sentinel.

 

For more information about the proposed $15 minimum wage and FRLA’s position on how this will impact the hospitality industry in Florida, please visit our Minimum Wage page.

Late David Burke Inducted Into Hospitality Hall Of Fame

[Orlando, Fla] Representatives from the Florida Restaurant & Lodging Association (FRLA) recognized the commitment and service of the late David Burke in a ceremony held on Sept. 15. The Hospitality Stars of the Industry Celebration honors men and women from around the Sunshine State for their remarkable work in hospitality, and the FRLA chose Burke as the 2019 Hotelier of the Year. This distinction places the recently-passed Executive Vice President and Chief Sales & Marketing Officer for the Breakers Palm Beach in the association’s Hall of Fame, reserved for those who have dedicated decades to providing excellent service and leadership in hospitality.

“David was a highly valued member of the Florida hospitality industry and a dear friend of mine and the association’s. I am honored to induct him into our Hall of Fame,” said Carol Dover, CEO and President of FRLA. “His passion for this industry shined through all the amazing things he did throughout his career and life. He was a beloved friend and will be dearly missed.”

Originally from Bethlehem, Pa., David Burke arrived at The Breakers Palm Beach in 1991 after ten years with Hyatt Hotels & Resorts. His career began after graduating from Florida International University with a Bachelor of Science Degree in Hospitality Management, at the Boca Raton Resort & Club. After two years, he joined Hyatt and worked for a variety of locations including Maui, San Francisco, Lake Tahoe and the Caribbean. While in Hawaii, he oversaw marketing for five of the company’s resorts totaling more than 5,000 rooms. With more than 40 years in the industry, 27 of them at The Breakers, Burke was passionate about hospitality.

David served as a member of the FRLA Board of Directors beginning in 2014, and most recently served as Chair of the 2018 Government Relations Committee. He was also President of FRLA’s Palm Beach Chapter before passing.

Statement on ‘Slave Wages’ Remark

[Tallahassee, Fla] The Florida Restaurant and Lodging Association (FRLA) has issued the following statement from Carol Dover, CEO/President, regarding John Morgan’s remarks at the Tiger Bay Club of Tampa on Friday:

“Mr. Morgan has made his position on minimum wage clear by leading the charge to get a constitutional amendment on the ballot next November. While I respectfully and vehemently oppose his position on this issue, I am deeply offended by his remarks at the Tampa Tiger Bay Club on Friday. By referring to minimum wage as ‘slave labor,’ Mr. Morgan showed us all just how tone deaf he is and how utterly oblivious he is to a very real problem in our state.

“His comments likening his fight for a $15/hour minimum wage to the fight of abolitionists who worked to end slavery are an affront to every man and woman who was jailed, beaten and branded for trying to protect the lives of their fellow humans.

“Furthermore, Mr. Morgan’s statements highlight his ignorance regarding the modern-day slavery we are actively working to stop, human trafficking. This heinous crime is real, and there are men, women and children in the United States who are literally enslaved because of human trafficking. Drawing comparisons between their plight and those who work for minimum wage is disgusting, cold-hearted and insulting to both groups.

“Minimum wage is an important issue facing our state, and the debate should be robust and vigorous, not convoluted with inaccurate and insensitive comparisons to abhorrent crime.”

FRLA Welcomes New Chairman of the Board

[Tallahassee, Fla] The Florida Restaurant & Lodging Association (FRLA) is proud to announce Sheldon Suga as the 2020 Chairman of the Board. Suga, the Vice President and Managing Director of Hawks Cay Resort, began serving as FRLA’s new chairman effective Sept. 15. He presides over FRLA, one of the state’s largest trade associations representing more than 10,000 members in the hospitality industry.

“Sheldon Suga is a demonstrated leader who has devoted his entire career to providing an exceptional lodging experience,” said Carol Dover, FRLA CEO and President. “He is highly regarded in the hospitality industry, and FRLA is extremely fortunate to have a professional of his stature lead our association through the rest of 2019 and 2020. We’re excited at the opportunity to have Sheldon serve alongside our 2020 Executive Committee and confident the Association will continue to flourish under his incredible leadership.”

Suga is an industry veteran with more than 35 years of industry experience. He found a passion for the industry at 16 years old while working as a room clerk in Niagara Falls, Canada, and began his degree of Hospitality Management at Ryerson University. After graduation, he was accepted into ITT Sheraton’s General Management Training program. During his time with Sheraton, Suga served as general manager at properties around the country and as country manager in Tokyo. With vast industry experience, Suga has been overseeing the Hawks Cay Resort, in the Florida Keys, for more than a decade.

“I am proud to have the opportunity to serve as Chairman of the Board for Florida’s premier non-profit hospitality trade association,” said Suga. “It’s a special feeling and I look forward to another year of working with FRLA and seeing an outstanding year for Florida’s hospitality industry.”

In addition to previously serving as the Chapter President of the FRLA Monroe County Chapter and most recent Vice President of the Board, Suga is also a member and past chair of the District III Advisory Committee of the Monroe County Tourist Development Council.

Taco ‘Bout a Cook-Off! Lee County Culinary Students to Serve Up Local Competition

[Fort Myers, Fla] On October 15, join Lee County ProStart high schools for a delicious time at the Florida Restaurant and Lodging Association (FRLA) Lee Chapter’s 2nd Annual Taco Cook-Off in partnership with Uncommon Friends. Hosted at the Burroughs Home & Gardens, local ProStart culinary student and instructor teams will prepare signature tacos and side dishes for attendees and judges, hoping for a chance to be crowned Overall Winner of the Taco Cook-Off. The competing high schools are: East Lee County High School, Estero High School, Oasis Charter High School, Island Coast High School, Lehigh Senior High School and Cape Coral Technical College & Fort Myers Technical College.

“The event is a great way to give students experience in cooking for large numbers of guests and serves up a healthy dose of competition,” explains Melissa Johnson, Teacher on Assignment at The School District of Lee County, who oversees the ProStart/culinary programs locally. “Community events like this cook-off are wonderful for showcasing local student talents, but also helps raise awareness and money for these Career & Technical Education programs.”

The fiesta will begin at 5:30 PM and end at 8:00 PM. In addition to great food, there will be live music, raffles and silent auctions. Guests will not only be able to try the student and instructor’s creations, but they will also lend a hand in the judging process, picking the Fan Favorite Winner. The Overall Winner will be selected by a group of local celebrity judges including ABC7 News’ Simone Cuccurullo, Guy Clarke, James Fraser, FOX4’s Lisa Greenberg, Chef Jay Johnson, Normal Love, Chef Joe Pittman, and many more.

Proceeds from the event will go towards Lee County’s ProStart programs, contributing to student scholarships, classroom supplies and equipment as well as state competitions. In addition, FRLA is partnering with Uncommon Friends to raise money for their scholarship programs, too.

Tickets cost $30 and are available to purchase here.

For more information on the Taco Cook-Off, contact FRLA Southwest Florida Regional Director, Lois Croft at 239-339-7692 or Lcroft@frla.org.