MARCH | APRIL 2022
Create a sense of belonging with a talent retention strategy
What you should know about SGOs
Meeting employee wellbeing expectations will be crucial
MARCH | APRIL 2022
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Date: July 21, 2022 Time: 8:00 a.m. - 5:00 p.m. CPE Credits: 8 PD
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2 | CPA Voice
CONTENTS MARCH | APRIL 2022
feature
Volume 14, Issue 2 EDITOR: Gary Hunt, CAE – ghunt@ohiocpa.com GRAPHIC DESIGN: Kyle Anderson – kanderson@ohiocpa.com EDITORIAL OFFICES CPA Voice 4249 Easton Way, Suite 150 Columbus, OH 43219
Tel: 614.764.2727 Email: CPAVoice@ohiocpa.com Website: ohiocpa.com
6 Create a sense of belonging as a talent retention strategy Don't let isolation and distrust erode your workforce.
in depth 2 CEO letter 3 Self-assessment exam Free for members!
4 2016 OSCPA Tax Reform Task Force report retrospective Six years after its publication, the report remains an influential guiding force.
10 6 steps to sustainable succession management Don't relegate succession to the back burner.
12 The many levels of volunteering value OSCPA honors its volunteers April 17-23.
14 The regulatory climate for ESG An increasing body of research shows a positive correlation between ESG and financial performance.
18 What you should know about SGOs Scholarship Granting Organizations have been around in other states for many years, but have just come into existence in Ohio.
24 Meeting employee well-being expectations will be crucial to attract and retain talent Finding the right formula to protect and enhance employee well-being has become even more challenging lately.
31 Learning events at a glance
ADVERTISING For our display advertising rates or a copy of our media kit, contact us at sales@ohiocpa.com or by call 614.764.2727. ARTICLE SUBMISSIONS We welcome submissions of analytical articles on issues relevant to Ohio CPAs. Desired length is 800-1200 words. Send an electronic copy with a cover letter to the editor at the email address above. Please note that CPA Voice is not a peer-reviewed journal. SUBSCRIPTIONS/CIRCULATION Members of The Ohio Society of CPAs receive CPA Voice as a member benefit.
Nonmembers may subscribe for $39.95 annually. To update your mailing address or to subscribe to CPA Voice, contact your Member Service Center at 614.764.2727, option 2. REPRINTS To order reprints of CPA Voice articles, or for reprint permission, contact the editor at the address above. CPA Voice is the official magazine of The Ohio Society of Certified Public Accountants. CPA Voice’s purpose is to serve as the primary news and information vehicle for the nearly 26,000 Ohio CPA members and professional affiliates. Articles are reviewed for technical accuracy. However, the materials and information contained within CPA Voice are offered as information only and not as practice, financial, accounting, legal or other professional advice. While we strive to present accurate and reliable information, The Ohio Society of CPAs makes no warranties regarding the accuracy of the information provided herein. Readers are strongly encouraged to conduct appropriate research to determine the accuracy of the information provided and to consult with an appropriate, competent professional adviser before acting on the information contained in this publication. The statements of fact, thoughts, advice and opinions expressed in CPA Voice are those of the authors alone and do not represent or imply the positions, opinions, nor endorsement of The Ohio Society of CPAs or of its publisher, editors, Board of Directors, or members. It is our policy not to knowingly accept advertising that discriminates on the basis of race, religion, gender, age or origin. The Ohio Society of CPAs reserves the right to reject paid advertising in its sole discretion. We do not necessarily endorse the resources, services or products unrelated to The Ohio Society of CPAs that may appear or be referenced within CPA Voice, and make no representation or warranties about those products or services or the accuracy and claims regarding those products and services. Advertisers and their agencies assume liability for all advertisement content and responsibility for all claims resulting from such advertisements made against The Ohio Society of CPAs. The Ohio Society of CPAs does not guarantee delivery dates for CPA Voice and disclaims all warranties, express or implied, and assumes no responsibility whatsoever for damages incurred as a result of delivery delays. CPA Voice (ISSN 0749-8284) is published six times per year by The Ohio Society of CPAs, 4249 Easton Way, Suite 150, Columbus OH 43219, 614.764.2727. Subscription price for non-members: $39.95. Copyright © 2022 by The Ohio Society of CPAs; all rights reserved. No part of the contents of CPA Voice may be reproduced by any means or in any form, or incorporated into any information retrieval system without the written consent of CPA Voice. Permission requests may be sent to the editor at the address above. While care will be given to all materials submitted for publication, we do not accept responsibility for unsolicited manuscripts, and they will not be returned unless accompanied by a self-addressed postage prepaid envelope. Periodicals postage paid at Columbus, OH and at additional mailing offices. POSTMASTER: Send address changes to: CPA Voice, The Ohio Society of CPAs, 4249 Easton Way, Suite 150, Columbus OH 43219.
MARCH | APRIL 2022
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A WORD from our CEO
Make your mark in your community
Never underestimate the impact one person can have. That was my thought recently as I reflected on the life and career of one of my predecessors, Vic Feldmiller, who died Jan. 29 at the age of 94. For 26 years – ending in 1990 – Vic was a tremendous leader for this organization. There is no doubt that CPAs in Ohio still benefit from the groundwork he laid to improve the business climate in Ohio and move the accounting profession forward. Barry C. Melancon, president & CEO of the AICPA, paused to remember Vic as a committed leader. “The Ohio Society has always been a leader, innovative and committed to the profession. That began with the foundation Vic laid then has been built upon by Clarke Price then Scott. One only needs to read Vic’s society contributions to understand the depth and breadth of the man. He helped make Ohio CPAs better.” My predecessor, Clarke Price, joined the Society during Vic’s tenure. “He really cared what the members thought, and the leaders thought, and he looked to them for guidance for the organization,” he said. “He believed that to be successful you had to genuinely care about the organization and members.” Vic’s obituary described him as “a man of few words but boundless wisdom. His life was built on a natural inclination to work hard, to provide for those he loved, and to do the right thing.” Those commitments – to working hard, to looking out for customers, clients and the public, to do the right thing, and to sometimes (but not always!) do it without fanfare – embody characteristics I have seen in many of our members. Those are a lot of people in a lot of places – in Ohio and beyond – who are making a difference.
2 | CPA Voice
We send our condolences to the Feldmiller family, and we are grateful to have had Vic to serve our members for so many years! In your professional life, what are you doing today to make a difference? How could you take it to the next level? And how can OSCPA help you get to that higher level? Let us know!
SCOTT D. WILEY President and CEO
swiley@ohiocpa.com | 614.321.2218 (office) | 614.546.9430 (cell) Twitter: @ScottDWiley | LinkedIn: www.linkedin.com/in/scottwileycae
Self-Assessment Exam
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MARCH | APRIL 2022
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ADVOCACY in focus
2016 OSCPA Tax Reform Task Force report remains invaluable By Gary Hunt, OSCPA director of content strategy & media In January, OSCPA Tax Policy Director Greg Saul, Esq., CAE, testified before state lawmakers. As he often has over the past six years, he came prepared with a document that has served as both a visual reminder and an educational tool about the influence of CPAs. Lawmakers were discussing House Bill 234, which would repeal the state’s commercial activity tax. Saul told them that CPAs have studied the issue closely and determined that eliminating the tax without a replacement could lead to unintended consequences for Ohio’s business environment. “OSCPA has a longstanding position that the CAT is effective if the following criteria remain intact: the rate is low, the base is broad, the exemptions are few, and compliance is simple,” he said, holding up a copy of the Society’s 2016 Ohio Tax Reform Task Force report. Six years after its publication, the report remains an influential guiding force, both
4 | CPA Voice
for legislators and for the direction of accounting profession advocacy in Ohio. “As I held it up, I told them, ‘I know many of you have seen our report over the years and it's been a guidebook,’” Saul said later. “Some of the legislators were looking at it as I testified.” OSCPA in 2015 formed the Ohio Tax Reform Task Force, a group of seasoned CPA tax professionals who advised or worked for businesses across every sector in the state. The group spent a year studying Ohio’s tax policies before bringing their collective knowledge together into key recommendations. As OSCPA President & CEO Scott Wiley, CAE, wrote at the time, the initial goal of the resulting report was to inform the state government’s 2020 Tax Policy Study Commission via OSCPA’s “recommended approach of moving toward a simpler, more competitive tax structure while minimizing the effects or pain on any particular segment.
“We are pleased to present these recommendations to the Ohio 2020 Tax Policy Study Commission and stand ready to assist Ohio in making our state a model for excellent tax policy,” Wiley wrote in the introduction. Lawmakers have adopted – in part or in full – several of the recommendations in the report: Reduce the income tax brackets from nine to preferably three, but no more than five. Such a move, the task force wrote, would bring greater simplicity to the personal income tax structure and make Ohio more competitive with surrounding states. The state’s 2021 budget bill continued a reduction trend begun in 2017 when Ohio had nine brackets by consolidating further from five to four, bringing Ohio’s top rate down to 3.99% on 2021 income greater than $110,650; and increasing the income level at which the first tax bracket begins, from $22,150 to $25,000. These steps have saved Ohio
taxpayers an estimated $2.7 billion, Saul said. Streamline sales and use tax on employment services. Ohio’s biennial budget bill passed last year exempted employment and employment placement services from Ohio tax beginning Oct. 1. Employers’ projected savings are $300 million through June 30, 2023. Collecting tax from remote sellers. The U.S. Supreme Court agreed with this rationale with its 2018 decision in South Dakota v. Wayfair, which found that states can generally require an outof-state seller to collect and remit sales/ use tax on sales to in-state consumers even if the seller has no physical presence in the consumer’s state. Ohio lawmakers in 2019 updated state law to be consistent with that decision. Municipal income tax reforms. The 2017 budget bill enacted, effective as of Jan. 1, 2018, both the option for business filers to have their net profits tax administered by the Ohio
Department of Taxation, and the elimination of the throwback rule for the sales apportionment factor. Of course, some battles are never truly over. Another idea that surfaces periodically at the Statehouse is expanding the sales tax base to additional professional services. On that issue the report is clear: such a move will drive away business. “That's something that we continue to defend against,” Saul said, “and in fact other states are considering it, including our neighbors Kentucky and Indiana. You can chalk it up as a victory for us for now, but it’s always a potential threat.” The full impact of the Ohio Tax Reform Task Force report is hard to measure, because many of its recommendations are healthy accounting practices that lawmakers should do in perpetuity.
the report continues to be a valuable and effective tool for encouraging good financial practices in state government, and for educating new legislators about the history and impact of Ohio’s major taxes. “It was a huge undertaking, and many of the remaining recommendations we are still pursuing to get enacted,” Saul said. “I think there's an appetite to still do some of these things. “With term limits, it’s challenging because there are several new legislators every year that we need to get familiar with it. But it’s helpful to get it in front of them and get them to focus on some of these issues.” Scan the QR code to view the Ohio Tax Reform Task Force report:
“Some are not accomplishments so much as they are habits,” Saul said. However, for that reason – plus the continuing turnover in the legislature –
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FEATURE
By Tiffany Crosby, CPA, CGMA, MBA, OSCPA chief learning officer
Create a sense of belonging as a
TALENT RETENTION STRATEGY 6 | CPA Voice
When I talk to business leaders about their top challenges, they often raise two issues: where to find talent and how to keep their current employees engaged. While there are no silver bullets to fix the talent issue,
Increase self-awareness
business leaders can increase employees’ intent to stay by
Encouraging leaders to slow down and providing
increasing their sense of belonging. Ninety-three percent of respondents to Deloitte’s 2020 Global Human Trends Survey agreed that a sense of belonging drives organizational performance, and 79% responded that developing a sense of belonging was important to organizational success over the next 12-18 months. "According to Better UP, belonging significantly increases job performance and decreases employee turnover risk, while a single incident of “micro-exclusion” has an immediate, negative effect on an individual’s performance on a team project. Economic uncertainty, political instability, and polarization were already contributing to the increasing prioritization of belonging before the pandemic. Worker isolation and deepening social distrust and division have further elevated the issue of belonging in the workplace. Belonging – that feeling of being accepted for who you are and valued for what you contribute to the team – taps into a basic human need that transcends all cultural and diversity dynamics. Diversity and inclusion may help bring everyone to the table and ensure they have a voice. However, belonging helps them stay engaged and contributing over time. The business case for diversity and inclusion has long been established. Research has shown that diverse and inclusive teams are stronger problem solvers, are more innovative and make better decisions 87% of the time. Yet, 64% of organizations surveyed by Korn Ferry identified building diverse and inclusive teams as a key challenge. The Great Resignation has intensified this challenge and empowered employees to exercise agency at increasing
opportunities for them to look inward and increase their self-awareness are critical actions for promoting belonging. Leaders must be comfortable identifying their biases, acknowledging how their biases affect their interactions and decision-making, and questioning their assumptions and reactions. Leaders can then use their self-awareness to listen with empathy and understanding and create space for challenging conversations. Numerous assessment tools are available to help leaders better understand their tendencies, strengths, weaknesses and blind spots. Whether DISC, MBTI, multi-rater, 360 reviews or other tools are selected is less important than taking the step to facilitate team and group conversations that promote both self-awareness and understanding of others. Mutual understanding is the goal; the tool is merely an instrument.
Practice open communication Open communication practices encourage employees to raise issues related to company structure or culture with an expectation that authentic, transparent dialogue will occur and issues will be addressed. To be successful, your plans for open communication must incorporate employees’ personality types and provide varied engagement opportunities to accommodate different relational styles and comfort levels. Individuals experiencing social inclusion, whether extroverted or introverted, might feel comfortable with forums, roundtables and town halls. However, introverts who feel social exclusion might only feel comfortable expressing those concerns in anonymous surveys.
levels. Organizations that take responsibility for creating an
Empower employees
authentic and caring workforce that fosters belonging have a
Create a psychologically safe environment that encourages
competitive advantage in the talent war. Given the urgency of
employees to engage in positive voice behaviors.
the talent issue, here are five steps can you take as a leader
Psychological safety exists when individuals can confidently
to foster a sense of belonging:
say their team will not embarrass, reject, ridicule or think less
1. Increase self-awareness
of them for speaking up. For psychological safety, the tone at the middle matters as much as, if not more than, the tone
2. Practice open communication
at the top. Team leaders set the tone for group interactions.
3. Empower employees
Team leaders who approach conversations with an open
4. Prioritize connection 5. Practice inclusive behaviors
mind, listen to understand, and consider how their views reflect their own background and experiences but might not be representative are better prepared to model healthy,
MARCH | APRIL 2022
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inclusive dialogue. Team leaders should also set baseline
Practice inclusive behaviors
expectations on group conduct and quickly intervene should
Inclusion and exclusion often coexist in the workplace, with
personal attacks or negative characterizations of individuals with dissenting opinions enter the conversation. Additionally, team leaders should display situational awareness, paying attention to what is happening in the environment around them to identify and avoid potential threats and unwelcoming situations. Sometimes just scanning the room for social exclusion cues will provide the necessary feedback for leaders to shift the climate.
Prioritize connection Personal relationships drive a sense of belonging. Employees who have strong, trusted relationships with their leaders can share their insecurities, issues, and concerns without fear of humiliation or punishment. Leaders must schedule
employees shifting between the two states based on the situation. Inclusive leadership requires a steady investment of time and energy to decrease distance and fully engage associates in every encounter. Conceptually, inclusion is easy to grasp. But entrenched habits, the need for expediency, a fear of the unfamiliar and blind spots can make inclusion hard to practice consistently. Fortunately, leaders can cultivate curiosity and humility expressed as open-mindedness, a passion for learning, a desire for exposure to different ideas and willingness to acknowledge limitations. Curious and humble leaders can build affinity across diversity dimensions by developing and understanding of other cultures and intentionally seeking out different perspectives.
time to get to know and connect with each team member to
Employees who feel devalued, dismissed, or ignored for
help employees feel accepted and supported. Go to lunch,
the unique qualities they bring to the table are more likely
grab coffee, schedule a one-on-one, talk a walk break,
to leave an organization. By cultivating an environment that
or whatever other creative way is available to you to slow
creates a sense of belonging, leaders can build a culture that
down and listen. During these conversations, pay attention
both attracts and retains talent. Embedding self-awareness,
to the relationship dynamics that are shared during the
open communication, employee empowerment, internal
conversation. Determining how comfortable and connected
relationship building and inclusive behaviors into the culture
employees feel with their team and other colleagues and with
requires the long-term commitment of leaders at every level of
leadership is a barometer for inclusion. During meetings, take
the organization. The potential rewards are worth the effort –
note of who engages in the informal conversations and who is
a greater likelihood of retention, collaboration, and innovation.
excluded. Likewise, look at the names routinely brought forth for projects or internal initiatives and think about the relational patterns that could be contributing to that outcome. Map out relational networks within your team and make a plan to connect employees who are disconnected.
Tiffany Crosby, CPA, CGMA, MBA, is the chief learning officer of The Ohio Society of CPAs and leads the Society’s diversity equity and inclusion strategy. She can be reached at tcrosby@ohiocpa.com or
SIDEBAR
614.321.2255.
8 | CPA Voice
Is the culture at your organization headed in the right direction? One way companies can start creating a vibrant and welcoming workplace is by getting a baseline measurement with OSCPA's culture and inclusion assessment. Our team has worked with diversity, equity and inclusion experts to develop a question bank that allows your organization to quickly begin measuring how your employees or members feel about the culture at your organization. Learn more by emailing Tiffany Crosby, CPA, CGMA, MBA, at tcrosby@ohiocpa.com.
of Thought Leads to Bold Innovation
OSCPA invites you to connect with learning that helps you tap the benefits of a diverse and inclusive workplace culture. From learning how to recognize and neutralize bias to inclusive collaboration and team building, OSCPA’s Crossing Bridges courses provide valuable insight for wherever you are in your DE&I journey.
Learn more at:
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9
TALENT management & human resources
6 steps to sustainable succession management By Robert Traphagen, CPA, CGMA, Traphagen CPAs & Wealth Advisors
You can't spell "succession" without "success." So why is succession often such a challenge for CPA firms? CPAs prioritize providing quality services to foster client
a sense, is viewed more often as an end game by many firms
relations and grow their firms; however, they relegate
rather than a critical component of firm management.
succession to the back burner. According to the 2020 Succession Planning Survey conducted by the AICPA Private Companies Practice Section and Succession Institute LLC, more than half of multi-owner firms (55%) said they are currently experiencing succession challenges, up from 26% in 2016, the last time the survey was conducted. Succession, in
10 | CPA Voice
It is imperative to focus on the future of the firm by adopting a strategy that builds sustainability. This will add value and allow a firm to be in a position of strength to determine its own destiny — through a sale, merger (upstream/ downstream), acquisition or internal succession supporting a legacy approach.
Here are six steps to creating a best-practice sustainability plan.
1. Identify the firm’s culture Karl Nelson, a 1986 New York Giants Super Bowl winner,
•
Use periodic performance management to provide feedback.
•
Invest in entrepreneurial development (e.g., emerging leaders conferences, Dale Carnegie seminars).
•
Delegate and empower others.
•
Implement performance-based compensation.
said the following when asked how the Giants won that year: “Each player on that team knew their role as well as each other’s role on the team. We knew who we were as a team, and where we were going.” Every firm should know, live and breathe its culture. Ask and answer the following questions: •
What is the firm’s mission statement? What does the firm actually do?
•
What is the firm’s vision? Where is the firm going?
•
What are the firm’s core values? Who is the firm and how does it operate?
2. Build infrastructure Every structure or entity starts with a strong foundation. The following initiatives can help firms develop a pipeline of talented, tech-savvy young professionals to nurture and grow with the firm:
5. Invest in technology Accountants will need to step outside their comfort zone as the profession evolves and new job-changing technologies emerge. As David Ben-Gurion says, “It’s not enough to be up to date, you have to be up to tomorrow.” Consider the following actions: •
Leverage technology.
•
Review and update systems.
•
Develop IT specialization within the firm.
•
Facilitate technical upskilling at all levels.
6. Client transition
•
Offer a college ambassador program.
A successful transition should give clients peace of mind
•
Develop an onboarding process.
in knowing there is continuity to meet their business
•
Provide training and coaching.
•
Promote professional networking for lateral growth.
3. Identify leadership Identifying emerging leaders is an essential component of any successful organization. Historically, many very successful small-to-midsize firms were founded by partners who left larger firms in part because they were not looked at as
and personal needs without disruption. According to the Succession Institute, “Orderly succession is about creating a system that supports change without change; organizational changes should always come from strategy redirection, not vacancies.” Sustainability is a success strategy, a most rewarding and exciting one; it allows a firm and its team members to change and grow. Components of this include the following:
leaders. Focus on the firm's leaders by using the following
•
Developing a team service
approach:
•
Having a “build-a-village” versus “eat-what-you-kill” mindset
•
Building brand loyalty versus partner loyalty
•
Redefining roles and responsibilities
•
Develop a firm competency model using existing frameworks as examples and communicate competencies that are needed for success.
•
Establish a career path.
•
Provide a road map for partner criteria.
•
Offer alternative leadership roles such as non-equity partners and developmental managers.
4. Professional development The best firms invest in their staff’s professional development. Firm success is dependent upon having a system to monitor goals and commitments. Firms that maximize the abilities of
Succession is a process that can take years, and it is never too early to start planning. Robert Traphagen, CPA, CGMA, is the managing partner of Traphagen CPAs & Wealth Advisors. He is a past president of the NJCPA and is a trustee of the NJCPA-PAC. He can be reached at robert@tfgllc.com.
their members have a competitive advantage. Management is a learned skill. Employ the following tactics:
MARCH | APRIL 2022
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VOLUNTEER appreciation week
The many levels of volunteering value OSCPA honors its volunteers April 17-23 By Gary Hunt, CAE, OSCPA director of content strategy & media
Volunteer work is a gift to others – and to oneself. And when it’s done in the service of the accounting profession, there is also the realization that you’re helping peers advance their business community. National Volunteer Week is April 17-23,
a significant grasp on the subject matter in an area that will
and OSCPA is taking that opportunity to
only continue to grow and explained it in a ‘Plain English’ way.
thank its many volunteers from this past
Keep bringing him back as this area continues to evolve.”
year, who in total donated more than 2,000 hours. Among them is Nick Ward, CPA, CBP, who works from Cleveland as manager of blockchain and digital
Ward discovered that speaking before an informed and motivated audience of CPAs has prompted him to hone his expertise.
assets at the San Ramon, Calif.-based Armanino LLP, and
“Getting ready to present forces you to really prepare and
who has spoken for OSCPA events since 2018.
drill down on topics,” he said. “I enjoy it, plus that process
OSCPA staffers learned of Ward’s expertise in bitcoin, blockchain and cryptocurrency, and Amber McAuliffe, CPA, the Society’s director of learning engagement, approached
has been very beneficial to me, because you have to understand things thoroughly and try to think of questions people will ask.”
him about speaking at a session of the Ohio Accounting
Since then, Ward has also become a member of The
Show. It was an offer he accepted readily.
Ohio Society’s Young CPA Committee. In addition to his
“First, huge kudos should go to the Ohio Society learning team for embracing these topics,” Ward said. “CPAs are likely to continue seeing these topics, because as interest increases in the public, more businesses are going to have to accept cryptocurrency.” Attendees loved Ward’s first presentation, praising his enthusiasm and preparation. “Nick was simply outstanding,” wrote one attendee. “He has
12 | CPA Voice
enjoyable experiences and motivation to learn, he credits his volunteering efforts with OSCPA for bringing him client referrals, valuable professional connections and even his current job with Armanino LLP, where he began work in April 2021. Are you interested in volunteer opportunities at OSCPA? Visit www.ohiocpa.com/volunteer to learn more about how you can play a role in advancing the state of business!
OSCPA Board of Directors Lori Kaiser, CPA, MBA, CGMA – Chair Keenan Cooper, CPA, CISA Michael Elliott, CPA Crystal Faulkner, CPA, CExP, MAFF Richard Fedorovich, CPA Chris Igodan, Jr., CPA Nancy Juron, CPA Lori Kaiser, Chair, CPA, MBA, CGMA Craig Marshall, CPA A'Shira Nelson, CPA Aaron Swiggum, CPA/PFS, CFE Amy Vetter, CPA, CGMA, CITP Ellen Wisbar, CPA, CGMA Julie Wozniak, CPA Jessie Wright, CPA, CGMA, CVA Jonathon Zavislak, CPA, CGMA Kaiser Consulting LLC Grant Thornton LLP Camp and Park Accounting LLC MCM CPAs & Advisors Bober Markey Fedorovich & Company Nationwide Insurance Deloitte LLP Kaiser Consulting LLC Ernst & Young LLP Apple Growth Partners William Vaughan Company The B3 Method Institute CBIZ, Inc. NiSource Inc. Schroedel, Scullin & Bestic LLC Thrasio Accounting & Auditing Committee Jami Blake, CPA – Chair Mark Batey, CPA William Bauder, CPA, CITP, CGMA Brett Burns, CPA, CGFM Amr Elaskary, CPA Ruth Peake, CPA Matthew Rosen, CPA Cohen & Company Apple Growth Partners Whalen & Company CPAs Perry & Associates CPAs A.C. Clark, Schaefer, Hackett & Co. Envision Pharmaceutical Services Inc. Barnes, Dennig & Co., Ltd. Accounting & Auditing Public Companies Committee Lauren Stuntebeck, CPA – Chair Stephanie Binford, CPA Lea George, CPA Jacqueline Moak, CPA Lauren Tonetti, CPA Franklin Templeton BDO USA LLP Marathon Petroleum Corp. LP Standard Bariatrics, Inc. Nationwide Insurance CPA/PAC Trustees Mark LaPlace, CPA – Chair Jeff Brooks, CPA, CGMA Ann Gabriel, Ph,D., CPA, CGMA Ranjan Manoranjan, CPA Jake Nix, CPA, CISA Jane Pfeifer, Treasurer, CPA Owen Wyss, CPA Matt Yuskewich, CPA, PFS GBQ Partners LLC – Retired Apple Growth Partners Ohio University – Retired 3SG Plus, LLC RISC Point Advisory Group Clark Schaefer Hackett & Co. Complete General Construction Company Winterset CPA Group Diversity, Equity, & Inclusion Taskforce Libby Cullins, CPA, MBA Patricia English, CPA Craig Marshall, CPA
Taylor McGowen, CPA Malven Rumhungwe, CPA Julie Sherwood, CPA Alison Strohm, CPA Ellen Wisbar, CPA, CGMA Julie Wozniak, CPA JPMorgan Chase Cardinal Health, Inc. Ernst & Young LLP Nationwide Insurance Deloite & Touche LLP American Electric Power Ernst & Young LLP CBIZ, Inc. NiSource Inc. Federal Tax Committee Michael Bowman, CPA – Chair Christopher Axene, CPA Eric Chaimowitz, CPA, CFP Benjamin DiGirolamo, CPA Robert Horstman, CPA Stephanie Lewis, CPA Seth Moody, CPA Colten Oakley Timothy Oatney, CPA, MT Mark Patrick, CPA Gary Pogharian, CPA Robert Roll, CPA Jeffrey Tubaugh, CPA Robert Woolley, CPA, MST Matthew Yuskewich, CPA, PFS Schneider Downs & Co., Inc. Rea & Associates, Inc. Truepoint Wealth Counsel HBK CPAs & Consultants RSM US LLP Fisher College of Business Plante Moran PLLC Oatney & Associates CPAs Inc MJ Patrick Inc. PricewaterhouseCoopers LLP GBQ Partners LLC BDO USA LLP Plante Moran PLLC Winterset CPA Group Foundation Board of Trustees Jay Moeller, CPA, CGMA – Chair Chris Barrett, CPA David Brockman, CPA Candice Declark Peace, CPA, JD Robert Fay, CPA, PFS, CGMA Chris Igodan, Jr., CPA Ebonie Jackson, CPA, CITP, MBA, CGMA Bill Miller, CPA Alison Strohm, CPA, PHR RSM US LLP Crowe LLP Sikich LLP Clark Schaefer Hackett & Co. Sole Practitioner Nationwide Insurance Lucas County Children Services KPMG LLP Ernst & Young LLP Foundation Development Committee Robert Fay – Chair, CPA, PFS, CGMA Alex Anthony, CPA David Brockman, CPA Libby Cullins, CPA, MBA Paul Etzler, CPA, CGMA, GACP Chad Frush, CPA, PFS, CGMA Jay Moeller, CPA, CGMA Roger Neefe, CPA Jacob Nix, CPA, CISM, CISA Rob Roll, CPA Sole Practitioner Path Robotics Sikich LLP JPMorgan Chase JLP CPAs LLC Frush Consulting, LLC RSM US LLP Capstone Financial Consultants Inc CPAs
RISCPoint GBQ Partners LLC Foundation Scholarship Selection Committee Megan Brocker, CPA, MBA Ann Gabriel, Ph,D., CPA, CGMA Teresa Haught, CPA Cindy Kula, CPA Sharon Reisman, CPA Robert Wardega, CPA Cassandra Wenman, CPA HBK CPAs and Consultants Ohio University – Retired The Jewish Foundation of Cincinnati Retired/Consultant Schneider Downs & Co., Inc. Billings & Company CPAs Rehmann Government Relations Advisory Council Michael Bowman, CPA Walt Eckert, CPA Crystal Faulkner, CPA, CExP, MAFF Richard Fedorovich, CPA Brett Fogle, CPA Nancy Juron, CPA Mark LaPlace, CPA Gregory Long, CPA Craig Marshall, CPA Michaela McGinn, CPA Jake Nix, CPA, CISA Amy Vetter, CPA, CGMA, CITP Schneider Downs & Co., Inc. Blue & Co., LLC MCM CPAs & Advisors Bober Markey Fedorovich & Company CliftonLarsonAllen LLP (CLA) Deloitte LLP GBQ Partners LLC - Retired Gregory A Long, CPA Ernst & Young LLP Rea & Associates, Inc. RISC Point Advisory Group The B3 Method Institute Peer Review Committee Mark Welp, CPA, CGMA, CFE – Chair Jodey Altier, CPA, CFF Kelli Bernstein, CPA Sandra Comer, CPA Jeffrey Harr, CPA Adele Jasion, CPA, CGMA, CRMA George Malachin, Jr., CPA Christopher McCurdy, CPA Michael Muniak, CPA Robin Ring, CPA George Sparks, Jr., CPA, PFS Chad Welty, CPA Holbrook & Manter, CPAs Inc. Perry & Associates CPAs A.C. Meaden & Moore LLP Manning & Associates CPAs LLC BHM CPA Group, Inc. Gilmore, Jasion, Mahler, Ltd. Linc, Malachin & Dennis, Inc. McCurdy & Associates, Inc. HW&Co. RL Ring & Associates, LTD Barnes, Dennig & Co., Ltd. Rea & Associates, Inc.
HBK CPAs & Consultants Maloney + Novotny, LLC CBIZ, Inc. SALT Committee Adam Garn, CPA, J.D., MT – Chair Daniel Bialek, CPA Megan Durst, CPA, CVA, MS, ABV Geoffrey Frazier, CPA Scott Gill, CPA, MT Chad Isler, CPA Alisa Kruse, CPA Ashley Matthews, CPA Diane Merk, CPA Jessica Morgan, CPA Stephen Palmer, CPA Bryan Paumier, CPA Joseph Popp, J.D., LLM David Reape, CPA Mark Rossetti, Keya Warfield, CPA Heather Wensinger, CPA Plante Moran PLLC Schiciano Johnston & Bialek LLC McLain Hill Rugg & Assoc Inc CPAs BDO USA LLP City of Grandview Heights 415 Group Inc Owens Corning Crane Group Clark Schaefer Hackett & Co. Ernst & Young LLP Plante Moran PLLC Victoria's Secret Stores Rea & Associates, Inc. HW&Co Bober Markey Fedorovich & Company Deloitte Tax LLP Big Lots Stores Inc Women's Initiatives Committee Lori Kaiser, CPA, CGMA, MBA – Chair Marie Brilmyer, CPA Kaitlin Newkirk, CPA Annette Rader, CPA Kathleen Schnieber, CPA Wendy Tietz, CPA, CMA, PH.D Kaiser Consulting LLC Cohen & Company Xavier University William Vaughan Company Clark Schaefer Hackett & Co. Kent State University Young CPA Leadership Board Keenan Cooper, CPA, CISA – Chair Joe Bernstein, CPA Brandon Hickey, CPA Courtney Holloway, CPA Justin Knight, CPA Derek Koester, CPA Hannah Nowak, CPA Grant Thornton LLP GBQ Partners Grant Thornton LLP Ernst & Young LLP Plante Moran Flagel Huber Flagel The Anderson's Inc.
Professional Ethics Committee Matthew Juengling, CPA – Chair Stephen Fifolt, CPA Barry Garvin, CPA Angela Lewis, CPA Paul McEwan, CPA, AIFA, Mtax Michelle Roseberry, CPA Allen Waddle, Jr., CPA, MBA Ellen Wisbar, CPA, CGMA Mellott & Mellott PLL Ernst & Young LLP Hobe & Lucas CPAs Crowe LLP Rea & Associates, Inc.
MARCH | APRIL 2022
| 13
FINANCIAL accounting, reporting & analysis
The regulatory climate for ESG By Laura Hay, CPA, CAE, OSCPA executive vice president
Environmental, social and governance (ESG) reporting is on a rapid rise because of investor interest and an increasing body of research demonstrating a positive correlation between ESG measures and financial performance. Enterprises are realizing that ESG reporting is an effective
reporting focuses on value creation across resources and
approach for communicating purpose, connectivity and
capitals that contribute to thriving and self-sustaining
impact, as well as their capacity for long-term value creation.
organizations.
So, the potential is not limited to reporting current information about management’s activities and plans for addressing risks related to ESG matters as part of assessing the financial
International integrated reporting Global harmonization in value reporting and its integration
position of the organization.
with traditional financial reporting has risen to an economic
In a world of significant change, businesses are driven to
announced that the Value Reporting Foundation (VRF) and
provide more information, and investors and employees are
the Climate Disclosure Standards Board (CDSB) would be
seeking more accountability, creating an opportunity for
consolidated into the IFRS Foundation this year. Supported
both internal and external financial advisers to contribute to
by the G7, G20 and International Organization of Securities
long-term organizational success. The concept of integrated
Commissions, the consolidation’s goals include developing
14 | CPA Voice
imperative. In November, the IFRS Foundation announced
a shared understanding of how enterprise value is created,
ESG reporting in the United States
preserved or eroded over time.
In the United States, the SEC requires public companies
A combination of three VRF resources have been adopted
to disclose certain ESG information if it is material to an
in more than 70 countries:
understanding of the business. Such disclosures include
1. Integrated Thinking Principles
climate and human capital risks. In 2010, the SEC issued guidance on how U.S. securities laws and regulations may
2. Integrated Reporting Framework
require disclosures of climate-related information.
3. Sustainability Accounting Standards Board
In July, SEC Chairman Gary Gensler said he wants mandatory
(SASB) Standards The IFRS Foundation is forming a new International
disclosures of climate risks and diversity, and that he wants the agency to move with urgency on these directives.
Sustainability Standards Board (ISSB) to develop a
The SEC proposals, on the regulatory agenda for early 2022,
comprehensive global baseline of high-quality sustainability
may address:
disclosure standards. An independent body, the ISSB will work in close cooperation with the IASB to provide
•
The entity’s plans to address climate risks and governance.
•
Climate targets and progress toward achieving the targets.
•
Greenhouse gas emissions.
•
Workforce and board diversity.
comprehensive information to investors and providers of capital. The ISSB will develop IFRS Sustainability Disclosure Standards, with the objective of high-quality, transparent, and globally comparable sustainability disclosures that are compatible with the financial statements and specialized for various industries. They will build upon the existing frameworks, so companies may continue using the VRF and CDSB frameworks and guidance.
As many entities consider how to incorporate new measures of value in traditional financial reporting, upcoming standards are responding to these disclosures and the auditor’s consideration of the overall environment in which the entity
MARCH | APRIL 2022
| 15
operates. The following Statements on Auditing Standards (SASs) are effective for audits of financial statements for periods ending on or after Dec. 14, 2023:
CPAs advising boards have recommended/asked: •
Keeping a spot on the agenda for ESG risks and opportunities.
SAS No. 143, Auditing Accounting Estimates and Related Disclosures
•
SAS No. 144, Amendments to AU-C Sections 501, 540 and 620 Related to the Use of Specialists and the Use of Pricing Information Obtained from External Information Sources
Is the finance function integrated in connecting the requirements of stakeholders with relevant metrics and disclosures?
•
Does the organization have the data it needs to assess how ESG is affecting the business?
•
Is there appropriate assurance regarding the reliability of that data?
•
Is the board interpreting the data to provide insight and foresight?
•
Is the organization clear on its ESG strategies and how it
SAS No. 145, Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement The AICPA has issued other guidance on ESG in the Financial Statements Practice Aid, to assist in evaluating how ESGrelated matters may affect the financial statements. The practice aid addresses:
will measure success? Policy responses to valuation, obsolescence, supply chain
• Responsibilities of Management – including assessing industry, regulatory and entity-specific factors in the context of the overall environment in which the entity operates.
and increasing costs of insurance are only some examples
• Responsibilities of Those Charged with Governance – including obtaining information about management’s assessment of ESG-related risks, its plans for mitigating those risks and future risks and opportunities.
We can no longer have a compliance mentality – in
of changes in the regulatory landscape, pointing to an everincreasing need for the profession to engage with lawmakers and regulators and continue to drive transformational change.
an environment of enduring change the profession is demonstrating agility in anticipating, recognizing and responding to new risks and possibilities.
• Responsibilities of the Auditor – ESG risks may affect the auditor’s determination of materiality, the auditor’s understanding of the entity’s environment and internal controls, and the risk assessment.
Laura Hay, CPA, CAE is executive vice president of The Ohio Society of CPAs and staff liaison to the Accounting Auditing and Professional Ethics Committees. She can be reached at Lhay@ohiocpa.com or 614.321.2241.
THREE THINGS reporting is on the rise and 1. ESG an increasing body of research
IFRS Foundation is forming 2. The a new International Sustainability
the U.S, the SEC requires 3. Inpublic companies to disclose
shows a positive correlation
Standards Board (ISSB) to
certain ESG information –
with financial performance.
develop a comprehensive
including climate and human
Furthermore, investors are
global baseline of high-quality,
capital risks – if it is material
interested in it, and enterprises
transparent, and globally
to an understanding of
are seeing that ESG reporting
comparable sustainability
the business. In July, SEC
is a good way to communicate
disclosures that are compatible
Chairman Gary Gensler said he
purpose, connectivity and impact.
with the financial statements and
wants mandatory disclosures of
specialized for various industries.
climate risks and diversity.
16 | CPA Voice
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MARCH | APRIL 2022
| 17
BUSINESS management & strategy
What you should know about SGOs By Randall W. Luecke, CPA, CMA, CAP, and Dennis A. Linden, CPA
Never heard of an SGO? You’re forgiven; they’re brand new in Ohio. Scholarship Granting Organizations (SGOs) have been around in other states for many years, but they're finally coming to Ohio, beginning September 30, as part of the biennial budget approved last year by Ohio's Legislature. What is an SGO? Scholarship Granting Organizations are remarkably simple.
Do the SGOs in other states work the same way?
They are religious or nonreligious 501(c)(3) nonprofit
No. Numerous states have SGOs, but they work a little
organizations that do two things: (1) raise scholarship funds
differently in each state. In Indiana, for example, where SGOs
from donors, and (2) disburse scholarship funds to students,
have existed for more than nine years, the tax credit for a
primarily from kindergarten to grade 12. Students from low-
donation is only 50 cents on the dollar, but for an unlimited
income households who attend public schools receive priority
amount. That means a taxpayer in Indiana could make
when scholarships are awarded.
a $5,000 contribution to an SGO and receive a $2,500
How do they work?
tax credit.
Contributions up to $750 to an SGO are eligible for a dollar for dollar nonrefundable tax credit on the donor’s State of Ohio
What is the process for establishing an SGO?
tax return. A tax credit to a charitable contribution is superior
To establish an SGO, an existing 501(c)(3) organization needs
from a tax-paying standpoint because it reduces the income tax liability of the tax donor.
18 | CPA Voice
to complete an application and file it with The Ohio’s Attorney General’s Office. In the event that a new organization is being
formed to become an SGO, it would first need to incorporate
donation on the client’s federal tax return instead of a
with Ohio’s Secretary of State’s Office by:
nonrefundable tax credit on client’s State of Ohio return.
•
Applying for a federal tax identification number with the IRS
•
Filing Form 1023
•
Applying for Recognition of Exemption with IRS to be deemed a 501(c)(3) organization
•
Filing the application with Ohio’s Attorney General’s
Here are the tax implications of such an error: Scenario
Scenario
Scenario
I
II
III
Tax savings attributable to charitable donation on taxpayer’s federal return
$-0-
$90
$-0-
Savings on State of Ohio return due to tax credit
$-0-
$-0-
$750
$-0-
$90
$750
Office to be approved as an SGO. The application must be accompanied by the following documents: 1. A copy of the organization’s bylaws; 2. A copy of the organization’s formation documents;
Total tax savings on federal and state returns attributable
3. Documentation that it gives priority to low-income
to $750 donation to the SGO
students when processing awards for scholarship; 4. Documentation showing that it primarily gives academic
In Scenario I: the tax preparer didn’t realize that the donation
scholarships to primary and secondary students when
to the SGO was eligible for an Ohio nonrefundable tax credit,
processing awards for academic scholarships; and
and assumed it was a charitable donation. But since the client
5. A notarized statement indicating how the scholarship granting organization meets the requirements to be certified by the attorney general under this section.1
How many SGOs will there be in Ohio? It is impossible to predict how many SGOs there will be in Ohio. It will depend on how many nonprofit organizations apply and how many are approved. In Indiana there are only seven SGOs.
Why should my client use an SGO?
did not have sufficient deductions to itemize, the tax preparer used the standard deduction for the client, and the charitable donation had no impact on the federal return. In Scenario II: the client had sufficient deductions to itemize, so the charitable deduction on the federal return generated a $90 tax savings (the client was in the 12% tax bracket). In Scenario III: because an acknowledgment letter indicating that a donation was made to the SGO was issued, the tax preparer did not take a federal charitable deduction and instead claimed a dollar for dollar tax credit on the client's
If your client – an individual or business – wishes to support
Ohio tax return that yielded a tax savings of $750.
academic scholarship, especially among low-income tax credit on their Ohio income tax return, as opposed to a
How do I manage my client’s contribution to an SGO?
charitable contribution deduction on their federal return. Tax
First, if your client made the donation by check, make
credits reduce the taxpayer’s income tax liability dollar for
sure that it was made payable directly to an SGO – not a
dollar, whereas the charitable deduction is worth only cents
participating school. Second, ensure your client’s check was
on the dollar, only in the event that the taxpayer itemizes on
deposited (or online donation was made) before Dec. 31 to
their federal return.
take the tax credit on the current year’s tax return. Third,
students, a contribution to an SGO results in a nonrefundable
Will SGOs in Ohio issue receipts or letters acknowledging donations?
make sure that the donation was to an SGO approved by the Attorney General’s office (you can check the approved SGOs on the Attorney General Office’s website). If the donation
It is imperative that SGOs issue a receipt or a letter
meets these criteria, the donation may be taken dollar for
acknowledging the donation and specifying that the donation
dollar up to $750 as a nonrefundable tax credit against
is eligible for a State of Ohio tax credit under section 5747.73
your client’s state tax liability. If the donation exceeds $750,
of the Ohio Revised Code. In the absence of this information,
the excess can be taken as a charitable deduction on your
the tax preparer might think that the donation is a charitable
client’s federal tax return.
MARCH | APRIL 2022
| 19
What impact will an SGO donation have on my client’s state tax liability?
Taxpayer liability before applying tax credits
Scenario
Scenario
Scenario
I
II
III
$2,425
$645
$-0-
These scenarios illustrate that the individuals for whom the SGO donation does the most good, from a tax payment standpoint, are those individuals with a State of Ohio tax liability in excess of $750.
Do SGOs only accept cash? That depends on the Gift Acceptance Policy of the SGOs that are formed in Ohio. In other states, the SGOs accept a wide variety of non-cash donations including appreciated stock,
Nonrefundable tax credit for SGO donation
$750
$750
$750
precious metals, land, grain, and cattle. Only cash donations will result in the Ohio nonrefundable tax credit up to $750; the other forms of donations will result in a federal charitable
Taxpayer owes the State of Ohio
contribution deduction. $1,675
$-0-
$-0-
In Scenario I: the tax credit for the donation to the SGO decreases the tax liability and the credit is fully utilized.
How do SGOs distribute scholarship funds? SGOs can either award and distribute scholarship funds directly to students, or distribute scholarship funds to participating schools with which the SGO has an agreement.
In Scenario II: the taxpayer applies the nonrefundable tax
In either event, the SGO or the participating school must have
credit (after using other tax credits such as the joint filing
a scholarship application process, must approve scholarships
credit or the retirement income credit) to completely eliminate
after verifying the household income of the student, and must
the tax liability of the taxpayer. Because the taxpayer has
prioritize scholarships for students of low-income households
only used $645 of the nonrefundable tax credit to eliminate
(currently defined as 300% of the federal poverty level).
their tax liability, the remaining amount can be taken as a
Records must be maintained for all donations received and all
charitable deduction on their federal tax return.
scholarship amounts awarded.
In Scenario III: the taxpayer was already going to receive a
Conclusion
refund. As a consequence, the donation to the SGO yields no
If the Ohio experience with SGOs matches that of other
benefit from an Ohio income tax perspective, but the entire
states that have established them, SGOs will serve to raise
$750 donation can still be claimed as a charitable deduction
significant scholarship dollars that will primarily be awarded
on the client federal return.
20 | CPA Voice
MARCH | APRIL 2022
| 21
to students, kindergarten through grade 12, prioritizing
Thank you, again, for your donation, and for your
students from low-income households. This may position
support in meeting the educational needs of Ohio
a significant number of students to now be able to afford
students from low-income households.
a nonpublic school of their choosing. Individuals and businesses who value nonpublic education alternatives should take advantage of lowering their state income tax liability by donating the maximum amount ($750) to
Sincerely, John Smith Executive Director
an Attorney General Office-approved Scholarship Granting Randall W. Luecke, CPA, CMA, CAP, is executive director of the Lutheran Scholarship Granting Organization of Ohio. He has 13 years of public accounting experience, and more than 30 years of C-suite experience with a variety of
Organization. Here is a sample acknowledgement letter for use by an SGO to position the tax preparer to manage the federal and state tax implications of a donation:
nonprofit organizations. He is a former editor of the Ohio
Dear Donor: Thank you for your $XXX.XX donation to the (Ohio SGO). Your donation will be used to grant scholarships, primarily to students in kindergarten to 12th grade,
CPA Journal and has authored more than 70 articles in numerous accounting trade journals including the Journal of Accountancy. He can be reached at rluecke@clhsa.org.
in participating elementary, middle and secondary
Dennis A. Linden, CPA, is a director
schools throughout the State of Ohio. Scholarship
for CBIZ MHM in its Northeast Ohio
awards will be prioritized for students of low-income
Accounting, Tax & Advisory practice.
households, currently defined as households under
He has more than 40 years of public
300% of the federal poverty threshold.
accounting experience with a focus on tax
Your donation may be taken as a dollar-for-dollar nonrefundable tax credit, up to $750, under Section 5747.73 of the Ohio Revised Code.
planning and compliance for closely held businesses, individuals, trusts and estates. He currently serves on the local board of directors of the Society of Financial Service Professionals.
Should you or your tax preparer have any questions with regards to the eligibility of your tax credit, or how it should be applied on your next state income tax return, please do not hesitate to contact the undersigned.
THREE THINGS which became possible 1. SGOs, in Ohio Sept. 30, are nonprofit
1
and businesses 2. Individuals who value nonpublic education
is important for accounting 3. Itprofessionals to understand
organizations that raise
alternatives should take
the state requirements
scholarship funds from donors,
advantage of lowering their state
regarding SGOs, as well as their
and disburse those funds
income tax liability by donating
potential benefits for taxpayers
to students, primarily K-12,
the maximum amount ($750)
and nonprofits.
prioritizing students from low-
to an Attorney General
income households, who attend
Office-approved Scholarship
participating nonpublic schools.
Granting Organization.
State of Ohio, Attorney General’s Office, Charitable Law Section: “Amended Draft Rules – Scholarship Granting Organizations – 109:1-8-01.
22 | CPA Voice
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MARCH | APRIL 2022
| 23
CAREER center
Meeting employee well-being expectations will be crucial to attract and retain talent By Alison Stevens, director of HR Services, Paychex
24 | CPA Voice
Many employers understand the importance of increasing wellness in the workplace. Not only does it influence employee retention and productivity, but it can also ultimately affect business success. Now more than ever, meeting employee expectations for supporting their well-being is essential for employers to compete for talent. But, given the changes sparked by the pandemic and the Great Resignation, finding the right formula to protect and enhance employee well-being has become even more challenging.
What defines employee well-being?
Key findings: How employee well-being needs are changing #1 Six out of ten employees surveyed say well-being benefits are a top priority when looking for a new job.
The term “employee well-being” might evoke deskbound employees getting up and tracking their steps, or employers offering healthier options in the breakroom vending machine. But in reality, it goes far beyond physical health: it’s about nurturing the vibrancy and growth of individuals within your organization, including their emotional, social, financial and career wellness. To understand what workers need to remain healthy and thrive in the current work environment, we conducted a
Workplace benefits are a key deciding factor for the majority
survey of 603 full-time employees. The participants were all
of individuals when job-hunting — this was found to be true
living in the U.S., working at small to mid-sized businesses
regardless of whether employees work in-person, remotely, or
(20-500 employees), and aged 18-74 years old.
a hybrid of both.
Overall, how employees rated their well-being fell dramatically
Almost half of employees feel that their current company
in 2020 at the height of the pandemic. Since then, employees
prioritizes their overall well-being. However, significantly
say their well-being has rebounded, but it has yet to return
fewer Baby Boomers (30%) felt so compared to Gen X (48%),
to pre-pandemic levels, and the state of their well-being
Millennials (50%), and Gen Z (55%).
differs by generation. For example, older employees (Baby
Those in smaller companies were also more likely to think their
Boomers and Gen X) report their overall well-being as better
overall well-being was prioritized by their employers. Fifty-two
than younger employees (Millennials and Gen Z), but younger
percent of respondents in businesses with 20-49 employees
employees report feeling more supported by their employers
and 50% of respondents in businesses with 50-149 employees
when it comes to their well-being.
thought it was a priority compared to just 36% of respondents
Participants reported struggling with financial and emotional
whose employers have 250-500 employees.
well-being the most, but well-being priorities differed based on generation and company size. A few key data points from the study which this article will expand on include: •
More than 6 in 10 employees say well-being support programs/benefits will be a top priority when applying for their next job.
•
Financial well-being is the #1 concern for employees.
•
Additional time off was rated as the most important way that employers can improve employee well-being.
MARCH | APRIL 2022
| 25
#2 Employee well-being has improved since the height
Nearly one-third of the respondents rated financial wellness
of the pandemic, but younger generations are struggling
as their number one worry. This included factors like overall
more than others.
compensation, retirement planning, and financial wellness programs. Gen X (32%) was significantly more likely to report struggling with their financial well-being than Gen Z (19%). Twenty-four percent of employees rated mental and emotional wellness as their top struggle at work. This is because they say they lack benefits such as flexible work scheduling, or access to employee assistance, mental health, and wellness programs. After that, physical (17%), social (17%), and career (13%) wellness were ranked as additional top struggles for them at work, respectively.
Sixty-nine percent of our survey respondents rated their well-being as "good" or "very good" before the COVID-19 pandemic. At the height of the pandemic, however, only 43% of employees rated their well-being as being good/very good. At the time of this survey (Nov. 2021), 59% of employees rank
Employees in companies with 50-149 employees (19%) reported they are significantly more likely to struggle with physical health as compared to those with 150-249 employees. And Gen Z (25%) reports having significantly
their well-being as being “good” or “very good.”
more trouble with physical health than Millennials (14%).
Surprisingly, despite the fact that younger generations
#4 Additional time off is the best way to support
were more likely than older generations to report that their
workplace well-being
employers prioritize their well-being, Millennials and Gen Z were significantly more likely to rate their well-being (18% and 19%, respectively) as "poor" or "very poor" compared to Gen X (12%) and Baby Boomers (8%). #3 Financial and emotional well-being are top needs for employees
Employees reported that additional time off is the number one way for employers to support their overall well-being (35%). Mental health support (29%), adequate staffing (28%), better health insurance (28%), and financial wellness training (27%) were ranked as the next best tactics for providing the support employees need. Additionally, Gen Z (30%) are significantly more likely to prefer childcare or aging parent benefits than Baby Boomers (9%), Gen X (12%), and Millennials (18%).
How to make workplace well-being work (as reported by employees) 1. Understand that employee well-being is a key criterion for recruiting and retaining employees. Our survey found this to be true regardless of industry or work environment (remote, in-person, or hybrid). While overall
26 | CPA Voice
See What's Ahead for Ohio's Largest EBPA Event
Employee Benefit Plan Audit Virtual Conference No matter if you’ve been in the EBPA world for eons or you’re an eager rookie—this conference will get you up to speed for what’s on the horizon for employee benefit plan audits. • Accounting and auditing standard update • Retirement legislation and economic update • Financial statement and disclosure refresher • Cybersecurity and fraud in EBPAs • U.S. Department of Labor update • Risk assessment enhancements and nuances • Employee benefit plan audit bootcamp— a great learning opportunity for staff new to the EBPA world!
Learn more at
ohiocpa.com/EBPA22
April 29, 2022 8:30 a.m. – 4:30 p.m. 8 credits AU
or call 614.764.2727.
Check off on your OSCPA dues statement for The Ohio CPA Foundation
Your support welcomes the next generation to our profession Your dues check-off contribution ensures that students understand the benefits of becoming a CPA through programs like ACAP-Ohio, Student Ambassadors and High School Accounting Career Days. When you pay your OSCPA membership dues, please check off for The Ohio CPA Foundation. Or, contribute now at www.OhioCPAFoundation.org. Your gift will make a difference!
For more information or to make your contribution online, please visit www.ohiocpafoundation.org. MARCH | APRIL 2022
| 27
employee well-being appears to be rebounding after a
3. Take a regular pulse of your benefits offerings. While
slump at the height of the pandemic, workers now view
there might not be a one-size-fits-all benefits solution,
support for their mental, physical, and financial well-being
there is an opportunity for employers to launch regular
as an important part of their benefits package. As part
surveys and segment the data to uncover what types of
of their employee wellness programs, employers need to
well-being benefits are desired by their employees. By
be clear as to which benefits are offered, how they are
surveying employees regularly, employers can segment
communicated, and how they can be accessed. The key
the data by generation, work environment (in-person,
attributes to implementing a mental health program for
remote, or hybrid), and gender to identify where there
your employees include 1) openly communicating the
might be benefit gaps and opportunities. Creating an
importance of talking about mental health, 2) providing
inclusive benefits package that meets the needs of
educational resources on mental health for employees to
various segments of workers can provide employers with
easily access, and 3) developing and deploying mental
a competitive advantage in today’s marketplace when it
health training for managers.
comes to attracting and retaining top talent.
2. Understand the importance of financial wellness
Alison Stevens is director of HR Services
and be clear about what your business offers. Many
at Paychex, where she leads a team
employees surveyed said that receiving better health
of more than 600 human resources
insurance from their employers is a key way to support
professionals in providing strategic advice
their well-being, along with better financial compensation
to clients.
and easy access to financial wellness education and training. Our research found that employee struggles related to financial well-being differ among generations, with Gen X and Baby Boomers having the most difficulty.
28 | CPA Voice
Land the perfect professional connection Whether you’re still basking in the glow of passing your CPA exam, a mid-level manager who needs a change, or a seasoned CFO who wants top talent, the OSCPA Career Center is your one-stop-shop to uncover rewarding careers and discover untapped talent.
Employers:
Job Seekers:
• Post jobs
• Search for jobs
• Review resumes
• Customize your job alerts
• Screen candidates
• Post resumes anonymously
• Expand your reach with enhanced posting options
• Save resumes and cover letters on your dashboard
• Explore our recruitment and retention resources
• Access videos and articles on interviewing, resume writing and more • Get free interview coaching via email or more personalized coaching for a fee
For more info, visit
ohiocpa.com/career-center MARCH | APRIL 2022
| 29
MEMBERS in motion
Keith A. Arner, CPA, CVA
Karen M. Brenneman, CPA, MT
Danielle M. Colby
Barbara Danner
Brian C. Miller, CPA, MT
Nick Roell, CPA, MBA
Andrew Somich, CPA
Sarah Stefaniak
Dow Wolfe, CPA
Ron Wollett, JD
AKRON
COLUMBUS
Dow Wolfe, CPA, was recently elected partner in the tax
Sara Goldhardt, CPA, has been named a partner at Ohio
team at Sikich.
CPA Proud firm GBQ.
CANTON
Ron Wollett, JD, has joined Ohio CPA proud firm Schneider
Keith A. Arner, CPA, CVA, has been elected managing
Downs as tax shareholder.
partner at Ohio CPA Proud firm Hall, Kistler & Company LLP. As part of the firms ongoing succession plan, previous Managing Partner Karen M. Brenneman, CPA, MT, will remain with the firm as a partner and continue serving clients. Danielle M. Colby has been promoted to senior accountant at Ohio CPA Proud firm Hall, Kistler & Company LLP.
HAMILTON Nick Roell, CPA, MBA, has been named a partner at Kirsch CPA Group.
MENTOR Andrew Somich, CPA, president & CEO at Somich & Associates Inc., was recognized by Crain's Cleveland Business as one of the Notable Entrepreneurs and was
Barbara Danner has joined Ohio CPA Proud firm Hall,
also a recipient of the Lake County United Way Emerging
Kistler & Company LLP as a supervisor, while Sarah
Leaders 4 Under 40 Award.
Stefaniak has joined the firm as office manager.
MAUMEE
Brian C. Miller, CPA, MT, has been promoted from tax
Gilmore Jasion Mahler, LTD announced the addition of a
manager to tax partner at Ohio CPA Proud firm Hall, Kistler
new partner and several team members. Ryan Leininger,
& Company LLP.
CPA, CVA, joined the firm as a consulting and assurance
CINCINNATI Bryan Gayhart, CPA, Laura Hunter, CPA, Lauren Huster,
partner; Matthew Alic, CPA, joined as tax manager; and Robin Maas joined as an associate.
CPA, and Brad Sack, CPA, have been named directors at
Dana Lumbrezer, CPA, has been promoted to assurance
Ohio CPA Proud firm Barnes Dennig.
manager at Gilmore Jasion Mahler, LTD.
30 | CPA Voice
LEARNING events at a glance 06/15
8:30 a.m. – 4:30 p.m.
Not-For-Profit Virtual Conference
8 credits
06/16
12:00 p.m. – 1:00 p.m.
Town Halls 2022
1 credit
06/23
8:00 a.m. – 11:15 a.m.
Virtual Ohio Professional Standards and Responsibilities 3 credits
RE
06/23
8:30 a.m. – 12:00 p.m.
Real Estate & Construction Half-Day Virtual Conference
4 credits
TX
07/21
8:00 a.m. – 4:00 p.m.
Women, Wealth & Wellness Conference
7 credits
PD
08/15
8:30 a.m. – 4:30 p.m.
Financial Institution Virtual Conference
8 credits
MULTIPLE
09/23
8:30 a.m. – 4:30 p.m.
Fall CPE Day Virtual Conference
8 credits
MULTIPLE
10/19
8:30 a.m. – 4:30 p.m.
Health Care Virtual Conference
8 credits
MULTIPLE
10/26-27
8:30 a.m. – 4:30 p.m.
October Accounting Show
16 credits
MULTIPLE
11/16-17
8:30 a.m. – 4:30 p.m.
November Accounting Show
16 credits
MULTIPLE
Hot Topics for CPAs Virtual Conference
MULTIPLE
MS
Employee Benefit Audit Virtual Conference
Apr. 26 & May 25
Apr. 29
8:30 a.m. – 4:30 p.m. | 8 credits
MULTIPLE
8:30 a.m. – 4:30 p.m. | 8 credits
AICPA On-Demand: Advanced Controller and CFO Skills
Spring Advance
MULTIPLE
Managing Stress
Complimentary for Members
May 10, 13, 18, & 23 3 credits
On-Demand 8 credits
SK
On-Demand 1.2 credits
FI
PD
COMPETENCIES Financial Accounting
Audit & Assurance
Business Management
Technology
Ethics & Professional Standards
Tax
Risk Management & Fraud
Essential Skills & Prof. Development
Talent MGMT & Human Resources
Multiple
CREDIT TYPE AC
Accounting
RE
Regulatory Ethics
BL
Business Law
AG
Accounting (Government)
BE
Behavioral Ethics
TX
Taxes
AV
Auditing (Government)
CA
Computer Software & Applications
EC
Economics
PR
Production
BM
Business Management & Organization
CM
Communications & Marketing
ST
Statistics
HR
Personnel/ Human Resources
SK
Specialized Knowledge
Information Technology
AU
Auditing
MS
Management Services
FI
Finance
PD
Personal Development
MULTIPLE
IT
Register today + find more events at
ohiocpa.com/Events22 Explore OSCPA competency framework at ohiocpa.com/CBL
MARCH | APRIL 2022
| 31
Advertisers Index Kathy Brents CPA CBI Broker, Managing Member
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32 | CPA Voice
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THE OHIO SOCIETY OF CPAs 2021– 2022 BOARD OF DIRECTORS CHAIR OF THE BOARD
Lori Kaiser, CPA, MBA, CGMA Kaiser Consulting Columbus
CHAIR-ELECT
Craig Marshall, CPA Ernst & Young Plain City
PAST CHAIR
PRESIDENT AND CEO
Crystal Faulker, CPA, CExP, MAFF Mountjoy Chilton Medley Cincinnati
Scott D. Wiley, CAE The Ohio Society of CPAs Columbus
VICE CHAIR, FINANCE
Chris Igodan, Jr., CPA Nationwide Insurance Columbus
DIRECTORS Keenan Cooper, CPA Grant Thornton LLP Cincinnati
A’Shira Nelson, CPA Apple Growth Partners Cleveland
Julie Wozniak, CPA NiSource (Columbia Gas) Columbus
Michael J. Elliott, CPA Camp and Park Accounting, LLC Burton
Aaron Swiggum, CPA/PFS William Vaughan Company Maumee
Rick Fedorovich, CPA Bober Markey Fedorovich Akron
Amy Vetter, CPA, CGMA, CITP The B3 Method Institute and Drishtiq Yoga Mason
Jessie C. Wright, CPA, CGMA, CVA Schroedel, Scullin & Bestic, CPAs and Strategic Advisors Canfield
Nancy Juron, CPA Deloitte LLP Windermere, Fla.
Ellen Wisbar, CPA CBIZ Cleveland
lately
Jon Zavislak, CPA, CGMA Thrasio Westerville
and wherever you get your podcasts!
on the pocast The Ohio Society of CPAs podcast “The State of Business” releases new episodes on Wednesdays, covering the latest news impacting accounting professionals. Episode title: Cybersecurity practices to follow in 2022 From the episode: “The bad guys only have to be right one time. We have to be right all the time, but an attacker could slip in. And once they slip in, it's all over.” Damon Hacker, President & CEO and a founder of Vestige Digital Investigations, a digital forensics company with headquarters in Cleveland
ohiocpa.com/Podcast
MARCH | APRIL 2022
| 33
Transforming Through Education, Advocacy, News & Connections
No matter where you are in your career or role in your organization, OSCPA has what you, your team (and maybe even your boss) need to excel. MEMBERSHIP and growing; together we transform careers, business, legislation, and lives.
LEARNING attended and connected through Town Halls and Advance to stay current on hot topics in the profession.
NEWS were delivered twice a week through Takeaways and LegUp to keep you in the loop on the ever-changing business and tax environment.
Renew today by calling 614.764.2727 or going to
ADVOCACY to taxpayers through OSCPA-backed income tax bracket reductions and rate cuts.
PIPELINE to The Ohio CPA Foundation, which allowed us to create one of the largest student pipelines in the nation!
MEMBERSHIP of complimentary learning/CPE included with your membership to keep you current on the topics that matter most.
ohiocpa.com/Renew22
