GRA Weekly

August 18, 2022

This week's newsletter is brought to you by GRA Corporate Partner, UnitedHealthcare.

RESTAURANT LEGAL SUMMIT

Early bird registration open for Restaurant Legal Summit

Registration is open for the 6th Annual Restaurant Legal Summit, Wed., Oct. 26–Fri., Oct. 28, 2022, at the Westin Buckhead in Atlanta. Keynote addresses will touch on recent developments, decisions, and enforcement priorities at the National Labor Relations Board (NLRB) and will be led by The Honorable Marvin Kaplan, NLRB member, and The Honorable Jennifer Abruzzo, general counsel (invited). Session topics cover artificial intelligence, food safety laws, employee relations, wage/hour regulations, labor policies, and ethics.

Attendees located in Georgia also receive a special registration discount. Contact Katie Jones, GRA Director of Administration, for information.

GRACE US WITH YOUR PRESENCE!

GRACE us with Your Presence!

Our 14th Annual GRACE Awards gala is an event you do not want to miss! Join us for an evening filled with amazing food, refreshing drinks and mingling with the industry's finest. Interested in sponsorship opportunities, please contact Sarah Thorson.

September 27 | Georgia Aquarium

SAVANNAH KITCHEN CABINET MEETING

Upcoming Kitchen Cabinet Meeting!

The Georgia Restaurant Association looks forward to meeting with Congressman Buddy Carter in Savannah on Wednesday, August 24. To get more details about the Savannah Kitchen Cabinet Meeting or want to host a meeting in your area, reach out to our Director of Advocacy Daniel New.

2022 DEI SURVEY REPORT

2022 DEI Survey Report

There’s a gap between how hospitality enterprises view their diversity and inclusion policies and how their employees actually experience them. This new diversity, equity, and inclusion (DEI) report measures the awareness and perceived effectiveness of DEI practices among employers and employees in the restaurant industry.

This research, conducted in collaboration between the National Restaurant Association, the National Restaurant Association Educational Foundation (NRAEF), the Multicultural Foodservice & Hospitality Alliance (MFHA), and Cornell University Nolan School of Hotel Administration, measured the DEI environment in the restaurant and foodservice industry to understand how DEI strategies impact foodservice workers’ job satisfaction.

This report reinforces the critical importance of effective DEI policies in driving employee engagement and retention in the restaurant industry.

Download this free report today.

LABOR UNIONS: WHAT RESTAURANTS NEED TO KNOW

Webinar Recap - Labor Unions: What Restaurants Need to Know

On Wednesday, August 10, the Georgia Restaurant Association hosted Pat J Hill, employment law expert with Smith, Gambrell, & Russell LLC, who shared her expertise on the history of labor and employment law, the role of labor unions, and best practices for employers faced with unionization efforts in their own restaurants. You can read a full recap and access a recording of this webinar here.

GA STATE INCOME TAX UPDATE

Alert: Georgia Pass-Through Entities Now Allowed to Deduct State Income Tax at the Entity Level

Last year, Georgia Governor Brian Kemp signed into law H.B. 149, which allows pass-through entities in Georgia to pay state income taxes at the entity level on behalf of its owners and claim a full deduction on their federal income tax return. This election will be available beginning with the 2022 tax year.

Read more for details on how these regulations may impact Georgia restaurant owners.

LOCAL GRANT + LOAN PROGRAMS

Policy Webinar- Depreciation & Amortization: How Congress Could Help Restaurants Expand & Rebuild

As interest rates continue to rise, restaurants are struggling with access to capital and the cost of debt financing. Congress is considering changes to the U.S. tax code, specifically by restoring depreciation and amortization to the formula for calculating interest on business expenses. When restaurants have the ability to deduct more in taxes, they gain financial flexibility to expand operations, finance equipment and refurbishment expenses, and continue rebuilding their workforce.

Join Aaron Frazier, Association Vice President, Public Policy to learn why the Permanently Preserving America’s Investment in Manufacturing Act, as well as undoing restrictive changes to the “Earnings Before Interest, Taxes, Depreciation, and Amortization” (EBITDA) calculation, are critical for restaurant development and growth.

Wednesday, August 31 | 2:00PM

FEDERAL UPDATES

Inflation Reduction Act Signed Into Law

President Biden signed the Inflation Reduction Act of 2022 into law this week, leaving out several major tax measures that the National Restaurant Association long advocated against. In a coalition letter to congressional leaders last Thursday, the Association opposed the legislation, arguing it does nothing to address inflation and recent negative economic growth but increases the tax burden on small and family-owned businesses.

What this means for restaurants: Since the House did not make any changes to the Senate-passed version, the same tax provisions from the Senate bill will take effect next year. Only restaurants with more than $1B in financial statement income and that pay less than a 15% effective tax rate will be subject to a new corporate alternative minimum tax (CAMT) beginning in 2023. Additionally, publicly-traded companies will be subject to a 1% excise tax for stock buybacks beginning in 2023.

Congress continues to press IRS on processing delays

Nearly 100 members of Congress are pressing the agency to continue suspending automated collections, extend the pause on automated notices, and maintain surge teams until it has fixed its hiring shortages to adequately address processing delays. Recent data show that the backlog increased in recent months. Contact Association VP, Public Policy Aaron Frazier for more details.

What this means for restaurants: Although the letter doesn’t specifically touch on the Employee Retention Tax Credit, it addresses the need to expedite paper return processing, which is a big part of the delay with the ERTC program. The Association hopes congressional pressure on the IRS will speed restaurants’ tax credits.

FTC Commences Rulemaking Process on Commercial Surveillance and Data Security Practices

The Federal Trade Commission (FTC) issued an Advanced Notice of Proposed Rulemaking (ANPRM) regarding commercial surveillance and data security practices. The agency’s press release and accompanying fact sheet are available here and here. We are monitoring closely as our partners at the National Restaurant Association plan to submit comments on behalf of the industry to the FTC before the mid-October deadline.