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Trained and happy - are you investing in your staff?

A new report released this June overwhelmingly shows that Canadian companies need to invest in their employees if they want to grow. The Navigator: Made for the Future Report surveyed 2,500 businesses in 14 countries and territories - 200 of them in Canada. The survey found that in Canada: Nearly half of those surveyed plan to boost spending on skills training for their staff in the next two years. 47% said their companies planned to spend more on training employees. 42% said they'd spend more on employee satisfaction and well-being. While 54% of the surveyed Canadian business leaders said their companies would make investments that fall under the category of research, innovation and technology, Dan Leslie, deputy head of commercial banking for HSBC Bank Canada, said the results show that technology is only half the story. "Tech adoption brings improvements but also creates the need for new skills," Dan said. "The priorities have shifted since some of our last surveys away from trade or capital investment and more toward investment around the well-being of their workforce." "Given labour market experts predict that many of the jobs people will hold in the future haven't even been invented yet, investing in adaptable employees is good business sense", Dan said. CBC June 26 How much should businesses be investing? What's the cost of programs and training? Is there a tax benefit or assistance small companies can access to assist with costs? Does location play a factor? There are many questions to be answered, and that's where our experts can help. Andrea Bruley, Senior Manager at Freelandt Caldwell Reilly LLP, is an expert in the areas of owner managed business, mentorship, accounting and not-for-profit accounting. You can contact Andrea regarding this topic by clicking the contact button below. Sources:

Getting the facts on carbon tax for small to medium-sized businesses.

The carbon tax has become an election issue, a matter before the courts and the subject of coast to coast political talk. Each province and federal party are seemingly taking a side and spreading their own messaging on what the carbon tax means for small to medium-sized businesses.  Heading into summer and this year's top issue is the carbon tax. Some owners claim that the rebates are not enough to cover the combined shipping, storage, services or other escalating costs. On the other hand, some are stating that's not the case, in fact, the new incentives are helping them increase business and create jobs. Do you know all the facts about the carbon tax? We have an expert that can help answer how much is it, who is paying and how is it impacting your business in Northern Ontario and across the province?  John Greenidge, Manager at Freelandt Caldwell Reilly LLP, is an expert in the areas of Indirect Tax, Federal Sales Tax (GST/HST), Provincial Sales Tax (PST/RST), Taxation and Accounting services. To contact John, simply click contact John below to arrange an appointment regarding this topic. Source:

Transparency from charities about how funds are used builds trust and increases giving

BLOOMINGTON, Ind. -- Charitable and humanitarian organizations are increasingly tapping into a $30 billion crowdfunding market, not only to raise funds but to build donors' trust by being more transparent, according to research from Indiana University's Kelley School of Business. Certified charities like the American Red Cross regularly use crowdfunding after hurricanes and wildfires. But other, often local, organizations that are quickly created after emergencies can compensate for their lack of government certification by posting frequent updates about how funds are being used. Authors of the paper are Jorge Mejia, assistant professor of operations and decision technologies; Alfonso Pedraza-Martinez, associate professor of operations and decision technologies and Grainger Faculty Fellow; and Gloria Urrea, a visiting scholar of operations and decision technologies. Mejia, the paper's lead author, noted its timeliness in light of several recent fraud cases involving charitable giving, such as the college admissions scandal and questions about the charitable status of politicians' private foundations and religious organizations. "Our paper tackles some of these challenges head on by providing a way to increase the transparency of these organizations online," he said. The paper's findings also have implications for donors, who need to pay attention to how charities are using donations, as shown through regular operational updates and other communication and certification. "Our results indicate that individuals and humanitarian organizations willing to start crowdfunding campaigns benefit from transparency," the researchers said. "As updates have a positive effect on donations, organizations can increase funding by keeping donors informed on a regular basis about the campaign's progress." The process of receiving approval from the Internal Revenue Service as a certified 501(c)(3) tax-exempt organization can take months, long after the immediate needs of a disaster have passed. In the meantime, local organizations accept donations to help with recovery efforts immediately using crowdfunding. "Donations increased both when campaigns provided frequent updates about the work of the charity and when campaigns were certified," the Kelley professors said. "Strikingly, we found that the size of the positive effect derived from operational transparency -- from communications work -- is much greater than the size of the effect of conventional transparency, from being a certified tax-exempt charity. "But not all updates are the same. Operational transparency increases the financial benefits of updates," they added. "Campaign organizers should focus their efforts on posting work-related updates to describe how the campaign is achieving its objective." Researchers collected data from a large online platform for charity crowdfunding and analyzed nearly 108,000 emergency campaigns over a seven-year period. Just over half of the campaigns posted at least one campaign update, and just 9 percent of the campaigns were certified. Each work-related word in updates increased donations on average by $65 per month, while being a certified campaign raised funds on average by $22 a month. The research article, "Operational Transparency on Crowdfunding Platforms: Effect on Donations for Emergency Response," appears online in the journal Production and Operations Management.

2019 Federal Budget Commentary

In brief, the 2019 Budget includes $22.8 billion in new spending over the next five years. The government expects revenues to steadily increase by nearly $60 billion in 2023 and projects program spending to increase by $40 billion that year. Debt payments are projected to increase by $7 billion. Based on these growth and spending assumptions, the government expects the federal deficit to increase to nearly $20 billion in 2019–2020 and 2020–21 and then decline to $9.8 billion at the end of the next five years. Cleo Melanson, Tax Partner, and Rick Bouffard, Principal & Tax Advisory, at Freelandt Caldwell Reilly LLP practice in the areas of tax and owner-managed businesses. You can contact Cleo by clicking here or Rick by clicking here to arrange an appointment regarding this topic. Articles:

Turning disability into accessibility

As communities grow and modernize – are we making the proper accommodations for those with disabilities to live a fulfilling, productive, and independent life? It’s a popular topic and one that we are now seeing being advocated more in many areas of everyday life. Accessibility laws and expectations are now ensuring that all aspects of education, business, transit, and health care are made available to everyone. The concept is sound – but how are we as a community developing reasonable accommodations and community resources that allow all people to participate in the community and successfully live their life? Often, it’s not a matter of intentional exclusion, rather the issue simply hasn’t been considered and no plan exists. And there are costs to not having a plan in place. Not addressing these “social determinants of health” (housing, transportation, etc.) affect healthcare outcomes and raise costs of hospitals, social services, and health care. Addressing these issues and improving accessibility may actually increase societal health, decrease long-term societal healthcare costs, and bolster the tax base. But as we move forward there are a lot of questions in the community about how to approach accessibility: What mechanisms are in place to gather input on needs, identify barriers, and consider requests for accommodation? What types of accessibility needs exist of the people who will use different community settings? (Physical, cognitive, sensory, emotional, developmental, etc.)? What types of accessibility barriers exist (architectural, environmental, attitudinal, financial, transportation, etc.)? How much do different accommodations cost? How can community settings partner with people with disabilities and/or health and human service providers? What specific ways can accessibility improve societal health? And that’s where the experts from CARF can help. Christine M. MacDonell is the Managing Director of Medical Rehabilitation and International Aging Services/Medical Rehabilitation at CARF International. She can address the issue of accessibility as it relates to people who have experienced brain injury, stroke, cancer, amputation, and spinal cord injury. Christine is available to speak with media regarding this topic – simply click on her icon to arrange an interview.

A new year with new changes for how small businesses are taxed.

The only thing surer than death and taxes, might be the annual changes and adjustments to the way small businesses are taxed in Canada. New restrictions, and rates can have positive and negative impact on business owners and their companies. This coming year, changes to Employment Insurance and the Canada Pension Plan could make the bottom line of some small businesses tighter. However, the overall corporate tax rate applicable to many small businesses in Ontario has fallen to 12.5%. We may see more money going back in the pocket of owners or their growing companies. “We know that the average small business owner doesn’t know a lot about these changes.” Bill Moreau, Minister of Finance There are a lot of changes to the current system this year; as small business owners prepare to file, it is in their best interest to contact an expert. The government itself has even admitted that some businesses might not be fully up to speed, that’s where our team can help! Cleo Melanson, Tax Partner at Freelandt Caldwell Reilly LLP practices in the areas of tax and owner-managed businesses. To contact Cleo, simply click here to arrange an appointment regarding this topic. Article: https://globalnews.ca/news/4804039/tax-changes-canada-cpp-ei-small-business/

U.S. economy to remain strong through most of 2019, with output averaging 3 percent

Higher than expected economic growth in 2018 should continue into next year, with U.S. output averaging 3 percent and continued strong gains in domestic job growth. Indiana will continue to outperform the nation, with output growing at a rate of 3.2 percent, according to a forecast presented today by Indiana University's Kelley School of Business. A year ago, members of Kelley's Indiana Business Outlook Tour panel predicted that U.S. gross domestic product would grow by 2.6 percent this year and about 3 percent if tax reform were enacted. Indiana was forecast to see growth of 2.8 percent. Friday's release of GDP data for the third quarter supports their view that 2018 should end up with output growth above those levels. "The tax cut has produced an acceleration in the U.S. economy during 2018 to well above the new normal status quo of 2 percent growth," said Bill Witte, associate professor emeritus of economics at IU. "We expect output growth in 2019 to average 3 percent, but with deceleration as the year proceeds. By this time next year, quarterly growth will be heading toward equilibrium growth at a little below 2.5 percent." The story in Indiana and the greater Indianapolis area is very similar. "The state economy appears poised to see its strongest growth in the first quarter of 2019, after which growth rates are expected to slow but remain strong through the end of the year," said Ryan Brewer, associate professor of finance at Indiana University-Purdue University Columbus and author of the panel's Indiana forecast. "It is most likely Indiana will continue to experience growth across the board -- in jobs, numbers of establishments, income levels, wages as well as gross state product." The Kelley School released its forecast this morning at the Indianapolis Artsgarden and will present it again at 11 a.m. today in Bloomington. The Business Outlook Tour panel also will present national, state and local economic forecasts in eight other cities across the state through Nov. 28. The national labor market has exceeded expectations for two years now. A year ago, the panel felt the U.S. economy would create jobs at a monthly rate of about 175,000 and that the unemployment rate would fall to 4 percent. Instead, monthly job creation through September has averaged nearly 200,000, and the jobless rate has fallen to 3.7 percent. These job creation trends are expected to continue into 2019, with average monthly job gains of 200,000, and the participation rate -- which measures the percentage of the U.S. population that was employed or looking for a job -- remaining flat. "The labor market will be increasingly tight," Witte said. "The unemployment rate could decline a little, but firms unable to find workers will remain an important theme." Risks to the forecast include the effects of political uncertainty, further trade disputes and economic concerns being felt in other parts of the world, including China and Europe. The panel also expressed reservations about the impact of further Federal Reserve interest rate hikes. They expect the federal funds rate to rise above 3 percent by the end of 2019. Kyle Anderson, clinical assistant professor of business economics and author of the forecast for an 11-county area that includes Indianapolis, Carmel and Anderson, said the region is at full employment, and continued job growth will ensure it stays there. Economic growth in the area will average about 2.5 percent. "Communities around Central Indiana are finding it necessary and important to invest in projects that improve quality of life and provide amenities for residents," Anderson said, referring to examples of this in downtown areas of Indianapolis and Speedway and in Carmel. "The message to community leaders is clear: Investing in infrastructure to improve quality of life is necessary to maintain a healthy local economy. "Tax incentives are not sufficient to draw in businesses and residents. Bike trails, community centers and connected neighborhoods were once seen as luxuries, but now are important economic development tools," he added. "This trend will continue, especially if the economic expansion continues nationally." Other highlights from today's forecast: ·      Consumer spending will continue to grow, although at a rate less than in 2018. ·      Business investment will be good, but held back by trade concerns. ·      Housing will resume growth with a small boost from the aftermath of hurricanes Florence and Michael. Elsewhere, including in Central Indiana, 30-year mortgage rates, nearly a full point higher than a year ago, could dampen enthusiasm for new housing and constrain prices. ·      Government spending will be strong early in the year, but growth could slow significantly toward year end.  ·      The trade balance will show increasing deficits. A detailed report on the outlook for 2018 will be published in the winter issue of the Indiana Business Review, available online in December. For more assistance, contact George Vlahakis, associate director of communications and media relations at the IU Kelley School of Business, 812-855-0846 (o) or 812-345-1500 (m), vlahakis@iu.edu.

In Georgia governor's race, women could cast deciding vote

With the 2018 midterm elections looming less than a month away, Georgia gubernatorial candidates Stacey Abrams and Brian Kemp are neck-and-neck according to the latest Atlanta Journal Constitution/Channel 2 poll. In an election year with record voter registration numbers in the Peach State—and amid allegations of voter suppression—women voters could cast the deciding vote. But for which side? To find the answer, says Dr. Mary-Kate Lizotte, associate professor of political science at Augusta University, look to the issues. “Women, in particular Republican and Independent women, differ from men of the same party on the issues of government spending on childcare, public schools, welfare, social security, and aiding the homeless,” Lizotte said. “Women typically favor increased spending on the issues.” Examining data from 1994 to 2008, Lizotte, an expert on gender differences relating to public opinion, found that women are also more liberal than men of the same party on the issues of gay rights, government-guaranteed standard of living, and on the provision of more government services. “For races where these issues have become salient, it might be the case that women would be more likely to be motivated to turn out to vote and to vote for candidates that have liberal positions on these issues,” she said.   That could be excellent news for the Abrams campaign, which has emphasized public education funding. “Women in Georgia who believe in increasing public education funding should be more likely to vote for Abrams,” Lizotte said. “This may also be the case for several House races where the issue of tax reform and tax cuts has become salient.” The confirmation of Justice Brett Kavanaugh to the Supreme Court earlier this month could also sway election results, albeit in less clearly defined ways. Lizotte said the confirmation could either motivate conservative women voters to turn out or, alternatively, dissuade Republican women with Pro-Choice leanings from voting entirely. The expectation is a little more cut-and-dry for liberal women voters. “The Kavanaugh confirmation is just one more reason to expect an increase in voter turnout among liberal women,” she said. “The Women's March in 2017 and 2018 along with the increase in female interest in running for office all indicate that the Trump election and presidency had already galvanized liberal women voters.” Finally, Lizotte said, although white women are divided politically—with college-educated white women swaying Left and those without a college degree favoring the Right—there was no such division among African American women voters. “And as we've seen, African American women turnout at high rates and can influence elections like the Alabama Senate race,” she said. Dr. Lizotte is available to discuss: "Gender gaps" on various issues leading up to the 2018 midterm elections The role of women voters in State and National elections The perception of voters, in terms of public opinion, toward candidates in Georgia's gubernatorial election.

Former U.S. Attorney Available to Discuss Fallout for Trump Administration in Light of Cohen Plea

Wheaton College Professor David Iglesias, a former U.S. Attorney in New Mexico whose areas of expertise include federal prosecutions, is available for interviews regarding the fallout for the Trump administration in light of Michael Cohen’s guilty plea in federal court on 8 criminal counts, including violation of campaign finance laws. “President Trump is now in a place few presidents have ever been,” Iglesias says. “At this point, he is basically an unindicted co-conspirator to federal crimes.” “I wouldn’t call it the beginning of the end, but it’s certainly the end of the beginning.” Iglesias is an associate professor of politics and law and director of the Wheaton Center for Faith, Politics, and Economics. He can discuss topics including: -The process of presidential pardons -How federal prosecutors treat indicted persons who cooperate with information concerning the crimes of other persons, and the quid pro quo for getting an individual to cooperate with law enforcement -Guilty pleas, hung juries, and sentencing in federal court -Impeachment (What Iglesias calls “the nuclear option for removing a sitting President of the United States”), the process, and why it has happened so rarely in U.S. history -Whether a sitting president can be indicted for crimes -The importance of the rule of law (Why is America the world leader for holding all accountable for their actions? What message is being sent if wealthy and powerful people can avoid criminal exposure for their actions?) -Watergate as a precedent, and similarities/differences with the current situation -Rules of federal investigations (How do federal agencies conduct investigations? What is public and what is non-public? Why are prosecutions that are considered "political" so dangerous for law enforcement?) To request an interview with Professor Iglesias, e-mail Wheaton College Director of Media Relations LaTonya Taylor at latonya.taylor@wheaton.edu. Source:

Understanding Trump’s ‘transition tax’ and who wins and who could lose (a lot)

Last December President Donald Trump signed into law sweeping tax reforms – some which had a purpose of discouraging multi-billion-dollar corporations from parking their money outside of the United States. The goal was to incentivise or encourage American-based companies like Apple and Amazon to keep profits local and ideally taxable in the United States. But the impact of these new laws is trickling down and hurting a lot of people. It seems anyone with dual citizenship or any American with interests in Canada may be vulnerable. And for some it is costing a lot of money that’s due very soon. So how much are companies expected to pay? Who is expected to pay and who will be impacted the most? As well, when it comes to taxes – that often means a windfall of new revenue for governments. Is it just Washington that will benefit or will the coffers in Ottawa see some money too? Tax laws are not an easy topic to understand. There are loopholes, complexities and levels of accounting that are beyond most people’s grasp. But that’s where the experts from Freelandt Caldwell Reilly LLP can help. Ed Reilly, Managing Partner and co-founder of Freelandt Caldwell Reilly LLP practices in the areas of tax and owner-managed businesses. To contact Ed directly, simply click on his icon to arrange an appointment regarding this topic. Source: