How are you doing on your employees right now? Are you struggling to hire new employees? Well, I’ve got some ideas for you, I know it’s a tough battle right now and unemployment is paying a lot of money to compete with the actual fact of working to earn a living.
So, just to let you know, the unemployment pandemic unemployment assistance, that is the extra $300 a week is scheduled to end on September 6th. So keep that in mind in your hiring as well. Also, if you qualify for the employee retention credit, which basically means your revenue’s down 20% over where it was in 2019 at the same time.
You could get your employees at 70% off. So perhaps you could be able to pay more for an employee if that’s what it takes to get a good one and get a credit back of 70%. So breaking it down in the numbers terms, if you pay an employee $10 an hour, you should be getting $7 an hour back through your payroll processing on your 941 if you qualify for the employee retention credit.
So, even if you had to bump that up to $15 an hour right now, that means your net costs would only be $4.50 if you’re eligible for the employee retention credit. You might be able to offer a subsidy for a specific period of time, or you might be able to hire a higher end employee and see if they can really generate what it takes to give you a return on investment on that employee.
If you have the employee retention credit in place, and you’re able to again, meet those criteria of the 20% down, you should be able to keep that employee retention credit in place until December 31st of 2021 right now. So, give that a shot and see if that works. Let me give you a couple of other ideas of things we’ve heard happening in the industry to work, to get people, to actually just take a look, fill out an application. Who would have thought we’d have to beg for employees, but we do right now.
A couple of things I’ve heard is offering some gimmicks. You know, sometimes it’s not the money that motivates people, It’s outside fun factors. So perhaps every week that they work at least 20 hours, you give them a grub cub card for 20 bucks or 50 bucks as an incentive to work and give them a good, good dinner for night okay, that’s one idea.
Another idea I’ve heard is having an interview party, basically having people come in at a certain time and offering them free dinner or free desserts from your studio, making sure that they have the opportunity to get something in return for looking at becoming an employee. Think about how colleges market to students and getting them to just come in and see what they have and fill out the application. You might want to take some of those vibes and see if you can turn that into a hiring opportunity.
So, let us know what’s working for you or what troubles you’re having, and we’ll be happy to help you try to get those resolutions and expand on those things that are working. I’m Donna Bordeaux, with Sweet Tooth CPAs. Please follow us on our YouTube page and our Facebook page to make sure you stay up to date with the latest and greatest news.
Donna Bordeaux, CPA with Sweet Tooth CPA
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.