It’s hurricane season, which is just one of several weather emergencies companies may face, depending on location. Tornadoes, floods and wildfires also pose serious threats. According to the Federal Emergency Management Agency (FEMA), about 25% of businesses never reopen after a major disaster. And many that do reopen struggle to recover.
To lower the risk of closure and improve your chances of a strong recovery, establish a comprehensive emergency plan before disaster strikes. FEMA recommends the following multi-step approach to help safeguard your business.
Set goals and assign responsibility
Start by carefully defining the goals of your disaster plan and identifying who’ll create, manage and execute it. Your priorities will likely include:
- Protecting employees and customers,
- Minimizing damage to assets, and
- Resuming operations as quickly as possible.
For legal and financial risk management, consider adding an attorney and an insurance professional to your team.
Craft your plan
Begin by identifying and prioritizing the risks your business may face. These will likely include physical injuries to employees or customers. Also important to consider are business interruption, revenue loss and damage to property, equipment, inventory or vital records.
Your plan should address:
Employee roles. Assign responsibilities to staff with relevant skills for different weather emergencies.
Evacuation procedures. Develop clear evacuation routes and protocols.
Safety equipment. Define needs for items such as first aid kits, fire extinguishers and sprinkler systems.
Data protection. Secure vital records and documents by means such as remote backups and physical copies.
Communication strategy. Establish how you’ll keep employees and customers updated as to status and recovery timeline.
Inventory and supplier list. Keep a current list of critical equipment and replacement suppliers.
Operational continuity. Create contingency plans to run essential functions remotely with a minimal team.
HR and payroll policies. Set guidelines for compensating nonexempt employees who can’t work during downtime.
Keep your plan thorough but manageable to ensure it’s practical, updatable and easy to follow.
Put the plan to work
To implement your plan, inform employees of their roles, assign responsibilities and provide any necessary training. Ensure that all essential emergency equipment is readily available and that your insurance coverage is sufficient to meet your needs.
Identify possible infrastructure gaps and address them promptly to ensure safety. An example would be inadequate emergency exits.
Do run throughs
Regular practice strengthens preparedness. Conduct drills to ensure safe evacuation procedures are clear and compelling. Verify that safety equipment, data backups, and other safeguards function as intended.
Be proactive. Don’t wait for a real emergency to discover weaknesses.
Monitoring and tweaking
With a solid plan in place, relax, but not too much. Review and update your plan at least annually to reflect changes in staff, operations or layout.
Incorporate feedback from various sources, such as test results, employee input and new risks you’ve discovered or lessons learned. Adapting and refining your plan regularly will maintain its effectiveness and help keep your assets, especially your human assets, safe over time.
Assurance
Your business may never be directly impacted by a severe weather event. But having a solid emergency preparedness plan can still offer tangible benefits, such as lowering certain business insurance costs. More importantly, it brings peace of mind that allows you to stay focused on running and growing your business, rather than worrying about the possibilities. Contact the office for guidance tailored to your situation.
3 Family-friendly Tax Benefits In The One, Big, Beautiful Bill Act
The One, Big, Beautiful Bill Act (OBBBA) brings a wide range of tax changes, with several key updates designed to support families. Among the many provisions, here are three with the potential to lower your tax bill.
- Boosted Child Tax Credit with a new rule
Beginning in 2025, the Child Tax Credit (CTC) increases to $2,200 per qualifying child under age 17 (up from $2,000). It will be adjusted annually for inflation starting in 2026. The refundable portion (the part you can receive even if you owe no tax) is locked in at $1,700 for 2025 and will also adjust for inflation moving forward.
The modified adjusted gross income (MAGI) thresholds for the phaseout of the CTC remain unchanged and permanent at:
- $200,000 for single and head of household taxpayers
- $400,000 for married couples filing jointly
Beginning in 2025, you must include valid Social Security numbers (SSNs) for both the child and the taxpayer claiming the credit. For joint filers, at least one spouse must have an SSN to qualify.
- The $500 Credit for Other Dependents lives on
Previously set to expire after 2025, the $500 Credit for Other Dependents (COD) is now permanent. The nonrefundable COD applies to dependents who don’t qualify for the child tax credit, such as college-aged children or elderly parents. The dependent must be a U.S. citizen, national or resident alien and must have a valid Social Security number or Individual Taxpayer Identification number.
The income-based phaseouts are the same as those for the CTC.
- Adoption credit gets a refundable benefit
For 2025, the maximum credit is $17,280 per adoption. But the credit phases out at higher MAGI levels than the CTC and COD:
- Begins phasing out at $259,190.
- Fully phases out at $299,190.
These amounts apply to all filing statuses.
Under the OBBBA up to $5,000 of the credit is now refundable, offering more immediate financial help to some adoptive parents. The nonrefundable portion can be carried forward; the refundable portion cannot.
Your tax advisor can offer more information about the tax side of adoption.
Questions?
These are just three highlights from the OBBBA’s roughly 870 pages of tax updates. Some families stand to benefit, but as always, contact the office to make the most of what’s available to you.
