Eyes on 2017

Millennials might be a dirty word to you, but you’ll be hiring them so you better adjust your company accordingly. That was the sentiment from author and business consultant Gene Marks, who spoke to contractors at LANDSCAPES 2016 and GIE+EXPO about business trends for 2017.

Marks said millennials value flexibility more than money, and there will be PTO legislation coming in 2017 or 2018. He said are there some larger companies that have very flexible policies like CarMax which allow employees to choose how many days they need. And one company is even offering pet bereavement days.

“Yes it’s PR, however data is showing that employees are taking less time off the more that you give them,” he said, adding that when you give them a minimal amount that expires, there is pressure to use it.

Marks also touched on wages, healthcare finance and technology during his talk. Here are some trends you should have an eye out for next year, and a few solutions for problems.

Healthcare

With many questions about the Affordable Health Care Act, Marks said contractors have three options.

1. Drop all coverage and pay the fine. From the companies he’s worked with, he doesn’t see this happen all that much.

2. Shift costs to a Bronze package and high deductible plans with a health savings account. Marks said Bronze plans have been very popular along with health savings accounts.

3. Self-insurance and hybrid plans. This is popular in companies with more than 500 employees.

Wages

Wages are going up about 2.7 percent overall, and Marks said a $15 minimum wage will happen. Even if you pay all of your employees more than $15, those who are slightly above that rate may ask for a raise because they are now closer to being paid the minimum.

“Consider the increased wages in your overhead,” she says.

There is also the Department of Labor exemption status. Anyone making more than $24,000 a year, you don’t have to pay them overtime. On December 1, that number changes to $47,476 for anyone who isn’t supervising someone, like administrative employees.

“If they are responding to an email on the weekend, they can claim overtime,” Marks said.

Marks said it would be smart to make a list of the people who fall into the category right now.  

Finances

Marks said these are some of the topics you want to speak with your accountant about right now.

Section 179 – $500,000 deduction for capital purchases per year.

R&D credit – You can receive money for any research and development you are doing associated with your business.

Work opportunity tax credit –  Extended through 2019, a $9,600 credit for hiring a vet, welfare recipient, long-term unemployed for first year’s wages.

Revisit your IRA/401K/retirement plans – Marks says you should put as much as you can into an IRA.

Hiring your kids – You can take a deduction of up to $4,000 if you hire one.

Deductions – Challenge the standard deduction of $6,300/$12,600 with healthcare, charitable, home office expenses

Write off accounts receivable and inventory. You can’t get an exemption for unused inventory until you dispose of it.

Hot tech

Marks also listed the four pieces of technology he thinks will be popular for 2017, and ones he recommends.

• CRM: Marks recommends Insightly. There are a number out there to use for monthly fees.
• Accounts Payable Management: Marks recommends Entryless. You can have a vendor send you an email to an address, it scans and formats the bill for you.   
• Communications: Marks recommends Slack. It’s a database for all of your communications – E-mails, texts, instant messages, etc.
• Facebook live: It’s a free TV station for your business. Once a month, do a show on landscaping, equipment tips, etc., to promote your company, Marks said.