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Current Edition of the HOTLINE
A publication of the Arkansas Hospitality Association JUNE 2003 HOTLINE AR FORD DEALERS BIG BASS BONANZA The 2003 Arkansas Ford Dealers Big Bass Bonanza is scheduled to take place on June 27—28 along the Arkansas River from Fort Smith to Dumas. This event is the country’s largest amateur bass tournament and is produced by the Arkansas Hospitality Association. Thanks to the Arkansas Game & Fish Commission and the Corps of Engineers for their cooperation again this year.
by Montine McNulty The legislative session and the first special session are over. Despite a really tough session, in many ways our industry was very successful. To review some of the major issues and the results: LEGAL Q & A Q. We are a small business and place a year expiration date on our gift certificates. However, many guests want to use them after the expiration date. Is it illegal not to accept expired gift certificates? ENDORSED SERVICES Employment Practices Designed exclusively for the hospitality industry and helps protect businesses from employment practices lawsuits. Workers’ Compensation Insurance Focuses on restaurants and lodging members. Features low premiums, focused loss prevention, aggressive management of claims, and a direct return of excess premiums. Credit Card Processing and Check Guarantee Service AHA members get lower rates for processing bankcards and access to a worldwide provider of electronic commerce products and services that cost-effectively manage and speed the processing of funds. Provider offers a check guarantee service that allows businesses to increase sales and profits. Payroll/Tax Pay Receive discounts on payroll preparation, payroll taxes, and filing of quarterly and annual returns. Package Delivery Receive $1.25 off each UPS Next Day Air Letter, 10% discount off UPS Next Day Air Paks and UPS Next Day Air Packages and a 20% discount of UPS Worldwide Express Letters and Packages. Tax Credits & Incentives Many businesses that have hired within certain targeted groups are eligible for tax credits. TaxBreak can help members retrieve significant savings. Retirement, Financial and Offers low-cost, high-quality financial services. Members have access to retirement, financial and estate planning services – 401Ks, Simple IRAs and executive retirement plans from the top rated companies in America at approximately 50% less. Long-Term Care Insurance Offers members the flexibility to design a policy to meet individual needs and budget. The plan includes nursing home care, assisted living facilities, home-based care, adult day care and respite services for caregivers. Voluntary Limited Benefit Medical Plan A customized medical plan offering three affordable options for health benefits are available for employers to offer their employees. This plan is commonly used for hourly paid employees who traditionally are not offered health insurance.
by Renee Borchert
Employers: Train your employees with no expense to you except for the time the employee is actually in class. The curriculum is FREE through this grant with the Arkansas Workforce Investment Board. If you are interested in registering your employees for classes or if you want to host a training in your facility, contact Renee Jeffery at (501) 760-4155 or at RJeffery@gccc.edu or or Karen Trevino at (501) 376-2323 at AHA. HOSPITALITY UNIVERSITY CLASS SCHEDULE
Roughly nine out of ten restaurants participate in community activities. Whether they are supporting programs to fight hunger, participating in mentoring programs, or sponsoring a Little League team; restaurateurs are doing what they can to be great neighbors. This fact inspired the National Restaurant Association (NRA), along with American Express, to create the "Restaurant Neighbor Award," an annual award that highlights outstanding restaurants in the field of community service and involvement. NRA also will award the "Cornerstone Humanitarian of the Year" award to an operator who has personally made an impact on their community. The Arkansas Hospitality Association will receive nominations from its membership and local AHA chapters through July 1. Applications are available by calling Renee Borchert at (501) 376-2323. In mid-August, the national judging panel chooses two winners and a "Cornerstone Humanitarian of the Year" from the pool of state winners. The Arkansas Hospitality Association will receive a plaque to present to its state winners. There will be three "national winners" that will receive $5,000 each to support a favorite charity or community project. Nominees must be members of the Arkansas Restaurant Association. * * * The restaurant industry employs an estimated 11.7 million people, making it the nation’s largest employer outside of government. In addition, providing job experience for persons who are relatively inexperienced or unskilled, the restaurant industry is an important employer of new workers and immigrants. * * * The American Hotel & Lodging Association (AH&LA) has been working with the new Department of Homeland Security (DHS) to find a balance that will ensure our nation’s safety while minimizing the security hassles imposed on travelers. AH&LA’s governmental affairs department was closely involved in the process of creating the DHS, lobbying for provisions that would guarantee that the new department will work to ensure the country’s economic security as it protects our national security. Specifically, AH&LA worked closely with Congressional leaders to expand the official mandate of the DHS to include our nation’s economic security, and to establish a Special Assistant within the office of the Secretary of Homeland Security whose responsibilities would include advising the Secretary on the economic impact of proposed policies and serving as a conduit for private sector input. * * * The NRA applauded the efforts of Reps. Wally Herger (R-CA) and John Tanner (D-TN) for reintroducing the "Tip Tax Fairness Act." The legislation was originally introduced during the 107th Congress in response to a June 2002 Supreme Court ruling which granted the Internal Revenue Service (IRS) authority to conduct employer-only audits and assessments to determine the amount of FICA taxes owed on allegedly underreported tips. "This legislation remains crucial to the nation's 200,000 restaurants with tipped employees. We believe it is clearly the IRS's responsibility - not a restaurant operator's - to enforce tip reporting laws and to determine which employees failed to report tips before the IRS goes after the employer," said Steven C. Anderson, president and chief executive officer of NRA. "The 'Tip Tax Fairness Act' simply clarifies the original intent of Congress and shifts the burden of tax collection back where it belongs-to the IRS." While the original Supreme Court case in question, United States of America v. Fior d'Italia, focused on one small business owner, it has ramifications for every business with tipped employees, including hotels, taxi cab companies and beauty salons. "By holding employers liable when employees allegedly fail to report all of their tips, the IRS forces restaurants into the untenable role of the 'tip police,'" added Anderson. Under current law, employees are required to report all tips to their employer. The employer then submits this information to the IRS, along with the employer and employee shares of FICA taxes. If the IRS believes that the amount of tip income reported by employees is inaccurate, the agency conducts an "employer-only" audit and uses an aggregate method of assessing the amount of tax owed. The IRS's "employer-only" audit approach puts the burden of enforcing tip reporting laws on employers, rather than on the IRS. It places on employers the unique burden of disproving that employees underreported tips or the amount by which they were underreported. Additionally, this method results in a wind fall tax for the IRS since they use an aggregate estimate to collect the employer's portion of the FICA taxes, but never credit the employee's Social Security wage history. * * * According to the Travel Industry Association of America (TIA), Americans will take 275.4 million leisure person-trips during June, July, and August. The Summer 2003 Forecast states that this is an increase of 2.5 percent over last summer. A person-trip is one person on one trip traveling 50 miles or more from home, one way. Air travel will be up about one percent this summer, primarily due to leisure travelers. The upturn may well signify the beginning of a recovery for the airline industry. Auto travel will continue to be stronger than air travel, up more than two percent. RV travel is likely to remain very strong this summer. Americans expect to stay away an average of 7.9 nights on their longest pleasure trip, down slightly from last year. Travelers continue to watch their pennies, planning to spend an average of $1,055 on their longest pleasure trip this summer, stable from summer 2002 but still down nine percent from the $1,172 in 2001. Americans’ longest summer trip will likely be spent outside of their home state (72%), while more than one quarter (26%) will spend their longest summer trip within their home state. Trips with children will be more popular this summer with 43 percent of travelers taking their kids on their longest trip, compared to 31 percent in 2002. Scenic drives, the beach and visiting friends and relatives prove to be the most popular summer activities. Consumers still favor the all-American road trip, with 70 percent of travelers saying they plan to take a drive along a scenic road. Other popular planned activities are: visiting cities/urban areas (60%), visiting small towns/rural areas (59%), visiting national parks or forests (49%), visiting historic sites (45%), traveling close to home (37%), camping, hiking or climbing (36%), visiting museums (35%). fishing (34%), and visiting theme parks (33%). * * *
My name is David Flis. I own several Burger Kings in Central Arkansas. I am also a Trustee for the Arkansas Hospitality Workers Compensation Trust. I have been a member of the Trust since it began in 1993. As a businessman, I am constantly comparing my costs and trying to manage them so my business can make a profit. Doesn’t that sound a lot like what you do in your business? 2003 CALENDAR OF EVENTS JUNE 10 Texarkana Chapter Meeting, 4:00 p.m. JULY 21 Finance Committee Meeting, 1:30 p.m., AHA Office |
Arkansas Hospitality Association
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