Vine Solutions Presents: Every Day Value, The Restaurant Accounting and Operations Blog » Restaurant Accounting

HR Corner-

Vine Admin — Mon, 25 Jul 2011 21:57:02 +0000

As with most HR Audits we perform, there are always areas where even the most well-informed restaurants fall short. While these oversights can seem minimal and insignificant, they can more often than not, result in extremely costly violations if not rectified. Below details the top 3 infringements we see when performing audits for our clients. If you have any questions or would like us to review your restaurant’s compliance, please call Paula Brannon at ext. 122 or email her at pbrannon@vinesolutions.com

Improper I-9 record keeping

Ø Undocumented workers could result in fines from $250 to $5,500 per worker depending on the prior history of violation.

Ø Each mistake or missing item on a form can result in a $100 penalty up to $1000 for each form.

Ø A missing form would automatically be assessed at $1000.

Ø ICE (Immigration and Customs Enforcement) can issue fines for poor record keeping as they see fit. (Recently fined a large retail firm 1 million dollars for poor HR record keeping practices)

Wage and Hour

Mis-Classification of Jobs: Exempt vs Non-Exempt

Ø Mis-classification of jobs could result in back pay for overtime, missed meal period penalties, and missed breaks. Look back period of 3 years.

Meal and Break Violations

Ø For each workday you fail to provide an employee a rest break and/or meal break as required, you owe the employee one additional hour of pay at the employee’s regular rate. (3 Year Statute of Limitations).

Ø Possible Class Action Law suit

Final Payment of Wages: Final wages are due immediately upon terminations that are involuntary, or where more than 72 hours notice was given. If less than 72 hours notice is given, wages are due within 72 hours of termination.

Ø Waiting time penalty. The penalty is measured at the employee’s daily rate of pay and is calculated by multiplying the daily wage by the number of days that the employee was not paid, up to a maximum of 30 days.

Workplace Safety

Absence of an Injury and Illness Prevention Program (IIPP)

Ø The absence of an Injury and Illness Prevention Program (IIPP) ranks among the most frequent Cal/OSHA (California Occupational Safety and Health Administration) citations against businesses. Fines for the failure to have an IIPP are upwards to $7,000

HR Corner…

Vine Admin — Tue, 10 May 2011 23:01:01 +0000

HR Corner

Are you in compliance? California requires Employers provide the following pamphlets:

Title	Employers must provide to
Paid Family Leave	New employees and when leave of absence is taken for a covered reason.
State Disability Ins.	New employees and when employees take a nonwork-related disability leave.
Unemployment Ins.	Any given employee being terminated, laid off, or given a leave of absence.
Workers Compensation	New employees with the following information: 1. Name of the company’s current compensation carrier. 2. The location and telephone number of the nearest information and assistance officer.
Sexual Harassment	New employees.

Immigration and Customs Enfrorcement

Regarding the Increase of I9 Audits:

Audits can be based upon leads generated through tips and on a random basis. Penalties can be very costly. We encourage you to review the I-9’s of your employees to make sure the forms are properly completed and signed. Keep I-9’s in a separate folder and do not keep photo copies of employee identification. If you need more information, or would like assistance with getting your I-9s compliant VineHR can help.

Did you know that Vine Online offers a Online Manager’s Log (OML) similar to that of a “redbook” to document important day-to-day operational information? The OML is broken down into 6 categories; Sales Figures, Tasks, Events, Messages, Staffing, and Log.

The user has the option of typing in a day that he/she may want to see in the date textbox. There is also a second box near the top of page which will list different locations that the user has access to. When using these two boxes, after you have entered your selections, click on the ‘Show’ button to display the desired date.

In addition, the OML also tracks which users have viewed a particular day by displaying a green check next to their name. If the user has not viewed the OML for that day, a red ‘x’ will appear next to their name. This allows users to keep track of who has and has not viewed the details of a particular day.

Vine HR Services

Vine Admin — Tue, 10 May 2011 22:56:46 +0000

Introducing VineHR

If the Department of Labor Shows Up at your restaurant…

Will You Be Prepared?

Our restaurant HR specialists are here to assist you with the core issues that all restaurants face.

California Wage and Hour Issues
Benefits Planning and Management
Safety and Compliance
Meal Period and Rest Break Compliance
I-9 Employee Issues
Job Mis-Classifications (exempt vs. non exempt)
Harassment Prevention

Interested in learning more?

Contact Paula Brannon, Vine HR

415-927-3308, ext. 122

pbrannon@vinesolutions.com

Read More

Important Notifications

Vine Admin — Tue, 10 May 2011 22:52:04 +0000

Form 1099/Form W9

The IRS requires companies to submit Form 1099 for all payments aggregating $600 or more in a calendar year to a single payee for services received, including rent. In order to ensure that we obtain necessary information to complete your filings, you will be receiving a letter from Vine Solutions regarding Form 1099 along with a copy of Form W-9, the form used to gather payee tax information. Look for the letter in your return packet from us in the coming weeks.

Keep in mind that the scope of 1099 filings are due to expand in 2012 to include payments for goods and payees who are corporations. Currently, the House of Representatives passed a bill which would repeal the expanded Form 1099 information reporting requirements and the bill is before the Senate for consideration. Until the Senate passes any repeal of the expanded requirements and the President signs such a change into law, you should continue to obtain and maintain the necessary records.

If you have questions regarding Form 1099, the IRS has information posted on their website: http://www.irs.gov/pub/irs-pdf/i1099msc.pdf.

571 Forms

With tax season well under way, please do not forget about property taxes! Many counties have already sent out business property statements. The returns are generally due April 1. Please be on the lookout for 571 forms and send them along with your weekly packet!

San FranciscoBusiness Registration Renewals

Beginning with the 2011 – 2012 fiscal year, Business Registration Renewal fees will be due on or before May 31, 2011 rather than February 28, 2011. The Tax Collector will be sending you payment and filing information in April 2011 regarding your business registration renewal. Please send any communications you receive in your weekly packet.

Vine Press Release; Changes to Our Management Team

Vine Admin — Tue, 22 Mar 2011 21:55:09 +0000

Vine Solutions

Tel: (415) 927-3308

khevia@vinesolutions.com

PRESS RELEASE – FOR IMMEDIATE RELEASE 2/23/2011

February 2011; THE MANAGEMENT team at Vine Solutions

CORTE MADERA, CA (2/24/2011)—Edward N. Levine, CEO and Founder of Vine Solutions, Inc. (“Vine”) is pleased to announce the appointment and promotion of several key executives effective immediately:

Takashi Nikaidoh has been appointed Director of Accounting and a member of Vine’s Executive Committee. Takashi brings to Vine Big Six audit and accounting experience garnered during his four year tenure with Grant Thornton, LLP. Takashi was engaged in year- end audits for restaurant clients serviced by Grant Thornton’s San Francisco office. Takashi is a Certified Public Accountant licensed in California and is chartered with further enhancing Vine’s robust accounting processes and reputation for industry leading restaurant information systems. Takashi has an MBA with an emphasis in Accounting from San Francisco State University and a Bachelor of Arts from the University of California, Berkeley. Prior to attending graduate school, Takashi was General Manager and Wine Buyer of Citron restaurant in Oakland for four years. Edward Levine indicated that Takashi would add further rigor to Vine’s processes and prepare the Company to execute growth plans to expand to other markets throughout the United States.

John Priest has been promoted to Executive Vice President. John is an eleven year veteran of Vine and has assumed increasing responsibility throughout his career with the Company. In addition to overseeing the expansion of the business into additional markets and accommodating Vine’s 30 percent annual growth during the past three years, John implements new technologies, strategies and controls to enhance the information services provided to our clients. This helps Vine clients compete much more effectively and has enhanced their profitability through the challenging economic downturn of the past two years. John received his MBA with a focus in Accounting and statistics and prior to joining Vine in 1999, he was the Controller of the legendary Star’s restaurant in San Francisco.

Elissa Phillips has been promoted to Vice President, Southern California. Elissa joined Vine Solutions in January 2007 as Director of Southern California Operations with the objective of pioneering the Southern California market for Vine’s proprietary restaurant financial information and consulting services. Over the past four years, Elissa has successfully developed the market and currently the Vine team provides services for over sixty restaurants in Southern California. Prior to joining Vine, Elissa developed and owned her own restaurant in Beverly Hills. Her academic credentials include an MBA from New York University’s Stern School of Business and a Masters in Accounting and a Bachelor of Business Administration from the University of Michigan. She is also a Certified Public Accountant.

About Vine Solutions:

Vine was founded in 1991 and incorporated in 1996. The Company is the leader in providing proprietary financial management and consulting services to restaurants. Vine supports over one hundred and fifty restaurants throughout California, Nevada, Arizona, Utah and Washington State. The Company is headquartered in Corte Madera, CA with satellite offices in Los Angeles. Vine also supports an affiliated operation in Philadelphia, Pennsylvania. Representative Clients include Left Bank brasseries, Bacchus restaurants, Bottega Louie, Brick and Bottle, Tavern, Lucques, AOC, Poggio, Icon LLC, Tender Greens, Wayfare Tavern, La Mar Cebicheria, Blue Water Grill, Chow, MacArthur Park, Musso and Frank Grill, Sam’s Chowder House. Beretta, Delarosa, Starbelly, Ubuntu, Wilshire and many others.

# # #

If you would like additional information, please contact Karsson Hevia at 415-927-3308 ext. 102 or khevia@vinesolutions.com

Small Business Health Care Tax Credit

Vine Admin — Tue, 22 Feb 2011 21:23:29 +0000

In an effort to help small businesses afford the rising cost of health insurance, the IRS has created a new 35% tax credit on the health insurance they provide to their workers as part of the new Patient Protection and Affordable Care Act (PPACA).

Those who are eligible, according to the new credit requirements, must provide a minimum coverage of 50 percent towards the cost of an individual’s plan. The business must also have less than 25 full-time employees and report an average annual wage of less than $50,000.

For more information on how to take advantage of this government subsidized tax relief as well as the appropriate forms for which to fill out, click here.

The Coupon Craze

Vine Admin — Wed, 05 Jan 2011 19:23:22 +0000

The Coupon Craze;

Can Internet Coupons Cut it?

There’s no need to explain what Groupon is, as the company’s omnipresence has spread like wildfire creating the most utilized discount concepts known to the Internet. Therefore, it’s no wonder why it’s become so successful among bargain seeking-consumers. The question critics raise, however, is can business owners afford to engage in a coupon promotion which more often than not is less profitable?

Groupon, along with thousands of other copycats worldwide, base their fundamental selling principal around a very specific business model; attract as many consumers to the coupon deal-a-day (currently sitting at a hefty 17 million subscribers), and in turn, create a successful 50/50 split transaction for themselves and the merchant. However, what companies like Groupon are failing to consider, is the what and how of the coupon redemption.

Many small businesses who have participated in the Internet coupon advertising, have purported being disenchanted with the false consumer base. Often times the customer isn’t the type of individual the company is specifically targeting, finding that they often will purchase only the amount indicated on the coupon. In addition, 9 times out of 10, the consumer not return unless, that is, if another coupon accompanies. As Denver Business Journal’s Ed Sealover explains, “[this] illustrates the conflicting views that businesses have about participating in the new wave of cut-rate Internet discounts that could fill a business without necessarily increasing its profits.”

According to an article by Brad Stone in Bloomberg Buisnessweek, restaurants account for nearly half of all businesses advertised on Groupon’s site, and yet an astounding 40% said they wouldn’t participate in a coupon promotion again. In addition, a study performed by Rice University’s marketing professor, Utpal Dholakia, which polled 150 businesses in 19 cities from June 2009 to August 2010, reported that restaurants represented the least successful businesses that took part in Groupon’s coupon promotions.

All too often, restaurants and food establishments have chronicled the difficulty juggling the rush of business that coupons momentarily provide. At the end of the day, it can create a disastrous backlash of disgruntled employees with little or no tips to show for it. In order for restaurants and other companies alike to benefit from the influx of traffic while still reporting a profit, Dholakia suggests modifying the way in which they present coupons. ”Instead of a $30 coupon, give three $10 coupons and allow only one per visit. And/or discount your less popular items rather than offerings that you will sell anyway.” He also impresses upon restaurants, the importance of capturing the email address of each coupon recipient. This way, you can include them in your social media networking as well as work towards establishing a long-term relationship with each client, as opposed to a fleeting one.

The Small Business Bill equates Huge Victory

Vine Admin — Wed, 05 Jan 2011 19:22:38 +0000

In recent years, it’s been no secret the difficulty small businesses have faced just to stay afloat in the strained economy. Yet, a recent bill signed by the House of Representatives might be exactly what is needed to give these companies a new lease on life.

The National Restaurant Association has been watching closely as the Small Business Jobs and Credit Act was first introduced to President Obama as a way of providing assistance to ailing restaurants and other small companies through financial recovery. In laymen terms, the approved bill enacted September 27, 2010, will extend tax reliefs and incentives for renovation purposes as well as to provide access to additional capital.

Under Section 179 of the tax code, businesses are now permitted to write off $500,000 of capital expenses as opposed to the current $250,000, through 2011. “That means restaurant operators could write off $500,000 of equipment costs, such as new point-of-sales systems the year they bought the equipment, rather than recovering all of the cost over a multi-year depreciation schedule”, according to The National Restaurant Association. In addition, as part of the proposed $500,000 limit, a restaurateur can expense $250,000 of the improvement costs the same year they were completed or purchased, through December, 2011.

The Small Business Jobs and Credit Act will also provide incentives to small, local banks who provide capital to small businesses by way of a proposed $30 billion Small Business Lending Fund. The bill includes the expansion of SBA, or Small Business Administration loans, by increasing loan amounts from $2 million to $5 million while reducing or even eliminating the fees incurred when applying for them, through 2010.

Newly Enacted Food-Handler Card Law

Vine Admin — Wed, 05 Jan 2011 19:20:07 +0000

Up until now, each county in the state of California had the ability to self govern when regulating the standards for food safety in restaurants and state law required that only one owner or manager per restaurant be certified in food safety. However, the SB 602 Food Safety measure signed into legislation by Governor Schwarzenegger has enacted a law standardizing all restaurants state-wide.

New law mandates ALL food handlers hired before June 1, 2011 receive a certification card from an approved food-safely examination such as the National Restaurant Association’s ServSafe Starters® California Food Handler Training Program by July 1, 2011. Those hired after June 1, 2011, have 30 days after their hire date to pass the food-handler exam and obtain their card. A food handler is defined by law as a person who works in a food facility or temporary food facility and performs any duties that involve the preparation, storage, or service of food in a food facility or temporary food facility.

Since the exam is the sole responsibility of the applicant (employee) for employment and NOT the restaurant (employer), the law requires at least one accredited exam be available for $15.00 or less, making it affordable for all. It is, however, the responsibility of the restaurant to keep all certifying examination documents for ALL it’s food handlers. Additionally, restaurants must maintain re-certification paperwork every 3 years upon card expiration.

For more information visit: http://www.calfoodhandler.com/calfoodhandler/

Important Law Updates for 2011

Vine Admin — Wed, 05 Jan 2011 19:18:02 +0000

Minimum Wage

San Francisco minimum wage will increase from 9.79 per hour to 9.92 per hour, effective January 1, 2011. The ordinance requires employers to display an updated poster with the new wage information. This must be displayed in area readily accessible to employees and must be in English, Spanish, Chinese and any other language spoken by at least 5% of the workforce. The ordinance further provides that a notice containing the employer’s name, address and telephone number must also be given to every employee at the time of hire. The state minimum wage stays at 8.00 per hour-no action required.

Healthy San Francisco-San Francisco’s Health Security Ordinance

On January 1, 2011, employer contribution rates will increase. Employers with 100 or more employees rates will increase to $2.06 per hour and the new rate for employers with 20-99 employees will increase to $1.37 per hour.

Mileage Reimbursement

Mileage reimbursement rates increase from .50 per mile to .51 per mile beginning January 1, 2011.

Organ and Bone Marrow Donor Leave

California employers with 15 or more employees must now provide the following paid leaves to employees who choose to donate organs or bone marrow:

Organ donors – must be provided a 30-day (workdays) leave of absence in any one-year period
Bone marrow donors – must be provided a leave of absence up to five workdays in any one-year period

The statute says that such leave does not run concurrently with the Family and Medical Leave Act (FMLA). However, state law cannot override federal law. Therefore, leave for the purpose of donating bone marrow or an organ may run concurrently with FMLA if the employer is a covered employer and the employee is eligible for FMLA.

Workers’ Compensation Posting Requirements

The posting and notice requirements were amended in 2010 to require additional information about Managed Professional Networks (MPNs). Employers with MPNs that provide treatment for workers’ compensation claims must display the required workers’ compensation poster (Notice to Employees – Injuries Caused by Work) as well as additional information about the MPN(s) the employer uses. The workers’ compensation pamphlet must also include information about MPNs.

Heat Illness Regulations Revised
A revised heat illness standard went into effect November 4, 2010. In addition to revisions related to shade and other safety precautions, the new standard includes changes to training requirements for both supervisory and nonsupervisory employees. Such training is now required to be given before employees begin work that “should reasonably be anticipated to result in exposure to the risk of heat illness.”

New Year Reminders

Employee Handbooks should be reviewed and updated to reflect new laws, policies and procedures
Post your updated 2011 law posters
Inform your employees of the 2011 rules for 401(k) plans
AB 1825 (Sexual harassment prevention training) is current for all supervisors and managers.