MARCH 2018
Late News EnviroStar completes acquisitions of AAdvantage Laundry Systems, Sky-Rent MIAMI — EnviroStar Inc. has completed the acquisitions of Zuf Acquisitions I LLC, dba AAdvantage Laundry Systems, a Dallas-based distributor of commercial laundry products and a provider of installation and maintenance services, and Sky-Rent LP, a Dallas-based provider of commercial laundry rental solutions, the company reports. “AAdvantage represents EVI’s first investment in the southcentral region of the United States,” says Henry M. Nahmad, EnviroStar’s chairman and CEO. “This investment is consistent with our plan to build North America’s largest commercial laundry distributor delivering a comprehensive product offering, world-class installation and maintenance services, and advanced technologies that deliver on our pursuit of growth.” EnviroStar is a distributor of commercial, industrial and vended laundry products and industrial boilers, including related parts and supplies. ALN
Tax reform and the laundry/linen industry analyst at The Tax Institute at H&R Block, to offer a first look at what TCJA will mean for laundry and linen service businesses.
A look into what the Tax Cuts and Jobs Act means for laundry/linen service providers
Q
Overall, what are some of the key changes in the Tax Cuts and Jobs Act?
BY MATT POE, EDITOR CHICAGO — At the end of 2017, the U.S. Congress passed, and President Donald Trump signed into law, the Tax Cuts and Jobs Act (TCJA). The Act cuts taxes on individuals and businesses in hopes this will stimulate the economy and create jobs. It’s the first major overhaul of the tax system in more than 30 years, which means everybody will experience changes in taxes starting this year. American Laundry News was able to get a few minutes at the start of the busy tax season with Mike Slack, lead tax research
Slack: The reduction in the tax rate for C corporations, the elimination of the corporate AMT (alternative minimum tax), and the new 20% deduction from business income for pass-through businesses are likely the most Slack impactful TCJA provisions for business. One of the more significant new law provisions cuts the tax rate for C corporations to a flat 21%. Before the TCJA, the tax rates for C corporations were graduated, starting at
15% for taxable income up to $50,000, with rates at 25% for income between $50,001 and $75,000, 34% for income between $75,001 and $10 million, and 35% for income above $10 million. The TCJA also eliminated the AMT for corporations starting in 2018. That being said, businesses with AMT credit carryforwards may continue to partially use those through 2021. For businesses that are not operated as C corporations (i.e., sole proprietors, partnerships and S corporations), the TCJA establishes a 20% deduction of their net income. This deduction is essentially a 20% “haircut” off the top of a business’ otherwise taxable profit, as it requires no additional capital outlay on the business to be eligible. The deduction becomes limited once income levels exceed $157,500 ($315,000 for joint return filers). See TAX on Page 2
Countering sexual harassment in the workplace Five-step plan to protect employees, business BY MATT POE, EDITOR ALEXANDRIA, Va. — Barely a day has gone by in the last few months when a public figure hasn’t been newly accused of engaging in sexual harassment. These accusations are coming to light because of a movement known as #metoo. The public movement is exposing disturbing activity and is making its presence felt in the workplace. Laundry and linen service providers need to take action now to protect employees and the company from this type of activity. Sexual harassment claims are costly, timeconsuming and embarrassing. Volume 44, Number 3
INSIDE Columnist at Large In this issue, Eric Frederick examines the importance of learning laundry basics.
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(Image licensed by Ingram Publishing)
Joe Shelton, a partner in the Atlanta office of the Fisher Phillips law firm, recently presented a five-step plan to help avoid harassment claims in a webinar titled Sexual Harassment—An Old Problem Under a New Spotlight, presented by TRSA, the associa-
www.americanlaundrynews.com
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HLAC Names Board Members HLAC has elected three new members to its board of directors for the 2018-20 term.
tion for linen, uniform and facility services. UP-TO-DATE POLICIES
The first step, according to Shelton, is for a business to make sure its policies match See 5 STEPS on Page 6
The Newspaper of Record for Laundry & Linen Management
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