Doug Houser:
From Rea & Associates studio. This is unsuitable, a management and financial services podcast for entrepreneurs, tenured business leaders, and others who are ready to look beyond the suit and tie culture for meaningful measurable results. I'm Doug Houser and this weekly podcast thought leaders and business professionals break down complicated and mundane topics, and give you the tips and insight you actually need to grow as a leader while helping your organization to grow and thrive. If you haven't already, hit the subscribe button so you don't miss future episodes. And if you want access to even more information, show notes, and exclusive content, please visit our website at www.reacpa.com/podcast and sign up for updates. Rea & Associates continues to advocate alongside the Ohio Society of CPAs to help build a better business climate throughout the state. In fact, because Ohio Society members work closely with the majority of businesses statewide, the society is often tapped for its holistic insight into the business community.
I'm looking forward to having Scott Wiley, the Ohio Society's executive director with us on this episode of unsuitable. Since joining the Ohio Society in 2013, Scott has made huge strides in his effort to strengthen the organization and its mission of promoting stronger businesses and a better regulatory environment throughout the state. In doing so, he continues to help make the Buckeye state more competitive through the promotion of diversity, equity, and inclusion. Today, we will learn how the Ohio Society is furthering its mission over the next year and beyond. Welcome to unsuitable, Scott.
Scott Wiley:
Thanks, Doug. It's great to be back and I'm looking forward to our discussion.
Doug:
Absolutely. Thanks for taking the time today and as a longtime member of the Ohio Society of CPAs and appreciate advocating for all the businesses in the state is as was indicated, ultimately, through the Ohio Society and its members. You touch darn near every business in the state, right?
Scott:
Well, certainly we try to. And CPAs make that a lot easier for us. As Ohio and certainly America's most trusted business advisors, CPAs are called on to do lots of things for lots of clients. And we like to think of ourselves as the most trusted advisors to those most trusted advisors.
Doug:
I love that. I agree having been on the other side of the table myself and been in financial services and banking and other areas, I mean, there's a reason that CPAs over the years have earned that respect. Certainly. So, that's great. So talk a little bit about, obviously, a year ago we were hit with this pandemic, which nobody saw coming, and what the Ohio Society quickly did to help bring resources, to bear for businesses in this state and to try to help advocate for business relief. Talk about how society was involved in a lot of that, what you continue to do.
Scott:
Sure. Well, Doug really Ohio businesses are just beginning to emerge from this unprecedented and quite frankly, disruptive year that the pandemic brought. And our members, particularly including the value guidance that you and the team at Rea & Associates have provided your clients and those you serve, our people stepped up to help advise key legislators and policymakers on what would be the most impactful things to do to keep the doors open and people employed. Quite frankly, because CPAs across our state work with, as I said, literally, every type of business from the smallest of the small to the largest of the large, and CPAs, including those at Rea & Associates provided incredible guidance. Very valuable guidance, if you will, to help businesses as they were not just finding their way forward, but really as they're reimagining their business and operational models. Certainly, so they can remain viable during the period of uncertainty, but so they can thrive as we come out of this period of uncertainty.
Doug:
Yeah.
Scott:
I think a couple of things really come to light for me. The Ohio Society and our members secured a number of pro-business, legislative, and regulatory wins and these initiatives were designed to create a stronger business climate and a better regulatory environment. Just in these last few weeks, we've spearheaded efforts as it relates to tax conformity. So the bill that just was passed in Ohio will allow deductibility of expenses from the paycheck protection program or PPP. It will allow for the exclusion of the 2020 Bureau of Workers' Compensation, Refunds, and Dividends from the BWC. And, those would be excluded from the CAT.
Doug:
Right from the CAT Tax.
Scott:
And we also were able to give the exclusion for the PPP second draw loans from the CAT, as well as to reduce the past or any withholding rates. So we know those issues, any one of them taken alone may not seem like a big deal, but when you look across the volume of Ohio businesses, these are going to make a significant impact on people's opportunities to stay employed, to keep people working and really to reinvest in their business as they find their way forward.
Doug:
Yeah, absolutely. I think that's so hugely important. I think people, we're so focused on some of the federal programs such as you mentioned, PPP and all that, they forget about the impact at the state level as well in terms of potential tax impact or how maybe a relief dollars that are allocated to either states or counties can be taken advantage of and then how they're treated from a tax perspective. So how much of your time or the society's time is spent trying to educate those legislators at say, a state or perhaps even local level, about all those types of issues? Is it a pretty significant amount?
Scott:
It is. A big part of our advocacy focus is helping policymakers and legislators and other can influencers understand the whole of the issue. One of the unique opportunities that we have at the Ohio Society of CPAs by virtue of the profession we represent is that our lens is viewed as one that's trusted, objective, and fair. And that's because of who we represent, CPAs, and how they're viewed as being of high integrity, of understanding the complexities in this, around the issue and not just a one-sided view. Certainly, we have a perspective, we have an agenda, and advocacy agenda, we're trying to advance but because we can come in and walkthrough on the volume of the issues and help folks understand all the sides, it really affords us a level of trust to come in and help those legislators and policymakers understand. But then for them to ask the natural question, which follows which is, what do you think we should do? Let me give you an example.
Doug:
That'd be, I'd love to hear that.
Scott:
Early on in the pandemic, the business community was able to move, some easier than others, their people to a remote work environment. And depending on the nature of the business, others needed to get back into their work environment. Think manufacturers for an example or those who make a product or have to be together to deliver a service, and they needed to get back in their work environment. And there were some complexities associated with that. Once we had some of the health issues better understood PPE, and distancing, and sanitation issues, we really had to think through with those policymakers what those complexities were. And we were able to help secure pandemic-related qualified immunity protection for businesses, as well as healthcare organizations you have in Ohio, earlier than most states in the nation.
And we were able to do that by demonstrating what those complexities were and how we could navigate them. And I think that really helped Ohio and it positioned our state and the economy in our state as able to rebound quicker and find its way forward. And just today I saw an article that talked about some of this quote-unquote second-tier or more Midwestern cities, which are poised for a bigger, stronger comeback before some of these perceived tier one major Metro areas. Another area was, on a broader scale, trying to help the legislature understand some of the issues regarding municipal income tax withholding. Early on the bill that was passed last year, house bill 197, there was a clause in there that allowed for employers to be able to withhold at their principal place of business. So they didn't have to deal with the rate of withholding everywhere.
Well, that was meant to ease the burden on employers. It was not meant to disadvantage their employees or hardworking tax-paying Ohioans for being able to get a refund. And as you well know, many people have been working outside of their principal place of works location, at home, in a suburb, maybe at another location. And so now we've got Ohioans who are due a tax refund and helping legislators understand the impact of that. As we hear a number of cities threatened to say, well we're not going to issue refunds. And now we've got Ohioans who are likely to see a system of double taxation, because if the city where they work or usually work, won't give you a tax refund and they're getting tax where they are working. So we've got to work through that and work that with the legislature and the governor, but it takes a degree of trust and certainly us bringing our people to the table to help folks understand the myriad of issues surrounding this.
Doug:
Yeah. And that's such a complex issue because you look at it from the other side, the large municipalities, particularly large cities can't afford to not have that employee base paying those taxes, but yet you don't want to, as you mentioned, you don't want to penalize individuals and sort of force them to double-dip in terms of paying taxes. So you've got to have some solution that's fair to both sides. It's certainly not an easy thing. I think that's the benefits society has, is that you represent CPAs and firms, that deal with all kinds of businesses throughout the state. It's not specific to any one industry or even anyone size type of business. You get this broad spectrum of information and feedback that you can provide that I think is very useful to legislators when they're trying to make those decisions. In other words, it's less tainted of a viewpoint.
Scott:
Absolutely. And I think that the muni tax issue, that's a great point you make, and we don't want to see Ohio cities crumble, but we also want to make sure we're being fair and reasonable. So we've done our part to support the efforts with our congressional delegation to get the state and those municipalities, the federal funding they're now going to receive. And many of those municipalities are going to receive federal funding equal to their annual budget. So we've done the legwork to make sure we're trying to get this right. It's not easy, but just like many Ohio businesses in this last year have been forced to rethink their own models, we know this pandemic also presents an opportunity and that's to rethink how we do business, even at the government level, how we fund that government business and really to make sure it's returning the level of value and investment to its consumer and its users that those users and consumers will now demand in a completely new and different world.
Doug:
Yeah. And talk a little bit more about that if you can, Scott. In terms of the kind of rethinking the typical business environment or rethinking business as usual, if you were and what some of the topics that you're approaching the legislature and your constituents in that regard.
Scott:
Well, and I think this is really the important part for your listeners and others to understand, about the great value of working with the team of Rea & Associates and CPAs in general, it's not just that these are advisors who understand the complexities of your business and can help you be successful and find your way back. These are counselors who can help you find your way forward. And I think we've all got to get our arms around, it's not about going back to where we were in, so to speak 2019. 2020 was as much about what we anticipated 2025 to be five years later and realizing that time is now. So certainly as I talk with our members around the state and hear what they're speaking with their clients and customers about, there are some critical issues that we know that are out there. The investments in the technology, and certainly that are underpinning the strategy for those businesses going forward.
That's not going away, that's been accelerated. So the conversations we're having at the state level to support the efforts that Lieutenant Governor John Houston is leading, particularly in this technology area, to make sure that all parts of our state have access to broadband, even the most rural, even the most underserved, because we realized in a new economy, having that access is critical and a must. What's happening in our state to attract more venture capital investment? What are we doing to position Ohio as a place that's not just, it doesn't have just a strong manufacturing economy, but one that's repurposed for the next centuries of investment and how we are deploying that in the areas of autonomous vehicle and the electric battery-powered vehicle in places like Lordstown. And so how are CPAs helping those businesses find that way forward.
And then still, when you think about the workforce, we have. One of the things that people aren't talking about that people need to better understand is Ohio. Ohio, one of the states that typically sees a great brain drain was one of the biggest state beneficiaries of migration in this last year of any state in the nation. Right? And so we had students who had gone home, gone to other colleges out of state, returning home to learn. We had people who were working in other locations, choose to relocate back to Ohio to do that work. Many of whom are going to be able to continue to stay that way. These are high-skill wage earners who are now back here contributing to the development of our economy. So there are opportunities that our state has realized. Certainly, there's been pain points. We're trying to help policymakers. We're trying to help businesses understand these issues so they can pivot and make opportunities happen, given their business plan, given their strategies, and given where they see their next opportunity rising.
Doug:
Yeah, I think that's tremendous. And I know when I talked to some of the economic development folks around the state whether it's through jobs, Ohio, or one Columbus or any of that. They echo a lot of those same sentiments and it's, it really, we have a unique opportunity right now to take advantage of this disruption that's happened because it has placed some of the things that Ohio has to offer really at a competitive advantage. So it's an exciting time to hopefully capture some of that opportunity going forward.
Scott:
Well, Doug, if I could, I just want to tell, we just launched a workforce development initiative that I'm really proud of. We're partnering with Franklin university, and this is not just an area where it's focused on the next generation of talent, it's also the current generation. And it's really focused on how can we bridge that skills gap and enhance those essential skills needed, we're focusing on accounting and finance professionals, but really it's a part of a broader strategy to make sure Ohio's workforce has the tools it will need to compete in the next generation. And this is as much about ensuring the next generation has and develops those skills as it is that the current workforce is getting upskilled. And I think this is a really critical point that Ohio needs to take the lead on. That next economy is here now and there are things that the business community can be doing to get ready for it.
Doug:
Yeah. So well said. Hey Scott, before we closeout. I know I want to talk a little bit about diversity, and inclusiveness, and those types of things and what initiatives the Ohio Society has, or is a part of to help further that.
Scott:
Yeah, I think I can't, I can't say it strongly enough. Diversity, equity, inclusivity, accessibility. These are important elements of what we can do to make our state more competitive. A number of studies have shown that I won't recite them all here, people heard these stats, but we're focused on a number of talent management initiatives, as well as advocacy efforts aimed at helping businesses create workplaces where their people can bring the best, their best selves to work, and that provide opportunities to grow and develop. So we're part of a broader coalition of businesses. The Ohio Business Competes, it's a nonpartisan coalition. That's committed to achieving non-discrimination policies at the state level in order to attract and keep the best talent, both from a business to business, business to consumer relationships, and to grow our economy. We've initiated efforts to expand anti-discrimination laws, including gender preference and sexual orientation under the list of protected classes.
We're working on public health policy efforts that focus on ending racism, which is designed to really make sure that we're understanding how it impacts business. We're developing programs and resources to help businesses advance their own understanding and implement implementation. Let me be the first person to say these are difficult conversations. People come at them from all different places in that is okay. No one person, no one organization has got it figured out. We certainly don't and I definitely don't. It's okay to say, let me meet you where you are. We've developed a program crossing bridges that we offer virtually. It focuses on topics related to diversity equity inclusion, and it's designed to bring awareness, but also action related to how do we become a more diverse and inclusive workplace culture.
We're offering firms and businesses, culture assessments, and training programs, as well as consulting services, if needed to assist them on their own journey. At the end of the day, what's important here is no one is where they need or want to be. No one. And we've got a role to play, to help folks get there and to do it in a way that meets them where they are and says, that's okay too as the place to be. But let's talk about where you want to get to and help you find the steps to take. And I'm proud of that work. It's something we're just getting started on. And I'm really proud that this profession continues to lead from the front in this effort.
Doug:
Yeah, that's awesome. So well said, and we've got certainly, as you suggested a lot of work to do, but you've got to take the first step somewhere and that's what it's about and certainly appreciate the society's involvement and advocacy across all of these issues. I mean, we're certainly proud to be supporters of the Ohio Society and I, myself am proud to be a member. So thank you for all. Yeah. We look forward to having you on again sometime soon, Scott, and getting an update. I think this is great information for all of our business owners out there. So thanks again.
Scott:
Doug, thanks for having me, and thanks for all you and the team at Rea & Associates do to make our work that much easier and certainly to make our state that much stronger.
Doug:
Appreciate that. And if you want more business tips and insight, or to hear previous episodes of unsuitable, visit our podcast page at www.reacpa.com/podcast. And while you're there, sign up for exclusive content and show notes. Thanks for listening to this week's show. Be sure to subscribe to unsuitable on Apple podcasts, Google podcasts, or wherever you're listening to us right now, including YouTube. I'm Doug Houser. Join us next week for another unsuitable interview with an industry professional.
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