AZ CPA December 2018

AZ CPA December 2018

Protect Your Company from Extinction

Training for Leadership Jessica Iennarella’s Story

Free Speech in the Workplace?

The Arizona Society of Certified Public Accountants y www.ascpa.com

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AZ CPA DECEMBER 2018

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AZ CPA The Arizona Society of Certified Public Accountants President & CEO Editor Advertising

Accounting & Assurance Conference January 9, 2019 Black Canyon Conference Center — 8 a.m. to 4:20 p.m.

Also offered as a webcast Gain insights on practice management, accounting updates and the latest innovations impacting your workplace. The Accounting & Assurance Conference will delve into cutting edge topics like blockchain, cybersecurity, AI and more.

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AZ CPA is published by the Arizona Society of Certified Public Accountants (ASCPA) to provide information, news and trends to the accounting profession. It is distributed 10 times a year as a regular service to ASCPA members. The ASCPA, its members, board of directors and administrative staff assume no responsibility for advertisements herein. The ASCPA and the above people also assume no liability for business decisions made by readers in reference to statements and/or claims in articles or advertisements within this publication. Opinions expressed by contributors are not necessarily those of the ASCPA. Arizona Society of CPAs 4801 E. Washington St., Suite 180 Phoenix, AZ 85034-2040 Telephone (602) 252-4144 AZ Toll-Free (888) 237-0700 www.ascpa.com

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AZ CPA DECEMBER 2018

Volume 34 Number 10

AZ CPA

December 2018

Features

12 HIGHER WAGES

How to Protect Your Company from Extinction If you are staying the same, you are actually falling behind — find out ways you can move forward to save your organization.

by M.J.Clark, M.A., APR

14

Training for Success

Learn how the AICPA Leadership Academy changed one ASCPA member’s life.

by Jessica Iennarella, CPA

17

Columns & Departments Chair’s Message by Michael T. Allen, CPA

6

Member News

7

A Dash of SALT by James G. Busby, Jr., CPA

9

ASCPA Board Minute Highlights

20

Quick Quiz

21

Classifieds 22

What Speech is Protected in the Workplace?

Can employees really say what they want at work. After all, it is a free country, right? Find out the answer.

by Emily Franchi

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Who Uses a CPA? The Arizona Society of CPAs commissioned a poll to study voter support for Proposition 126, income tax conformity, and to determine who uses a CPA.

Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 180 Phoenix, Arizona 85034-2040 www.ascpa.com

DECEMBER 2018 AZ CPA

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ASCPA Chair’s Message

Next-Generation Leadership I work with a significant number of organizations that are engaged in some sort of leadership transition. Like most of you, my experience with these transactions is based on the financial consulting I provide in support of an ownership change. More frequently, the value that we bring to these transactions occurs when we are able to look beyond our financial expertise and focus on those elements that will ultimately determine the transaction’s success.

by Michael T. Allen, CPA This next generation of leaders is hungry for the chance to prove themselves and ready to be kicked out of the nest.

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AZ CPA DECEMBER 2018

The key element to the success of many of these situations is the transition of leadership. The next generation is poised to assume the exciting changes ahead in our profession in ways that many of our current leaders are not prepared to do. The investment necessary to master the changes before us is hard to justify for many current leaders. The time to gain a return on their investment is short and may indicate the time for leadership transition is now.

As our profession is changing, the needs of the organizations we serve are requiring us to apply skills beyond those of the traditional CPA. Critical thinking will become a core skill of the CPA and will require the application of emerging tools in the areas of technology, psychology and business management. In order for CPAs to continue to influence decisions, the next generation will require a broader base of training. I have included a discussion about the science of influence as an example of the type of skills they will need to gain. (https://www.influenceatwork. com/principles-of-persuasion) Our public accounting firms are changing into CPA-led firms, with many of the key employees trained in skills different than traditional public accounting. Private sector, government and not-for-profit CPA leaders have been experiencing this for a long time and find themselves increasingly engaged in discussions at the C-suite and board level where the expectation is that they have a broad understanding of all the changes ahead of us.

I believe our next generation of leaders is well equipped to take on these leadership roles and steward our organizations to even greater success. While some generational biases may exist relating to certain generations having a tendency to be less motivated, non-competitive or having a poor work ethic, this is not what I see from many of the individuals who are preparing to take on these nextgeneration leadership roles.

The ASCPA sponsors an incredible Emerging Leaders training series where young leaders can interact and learn from each other while receiving training from their peers already in leadership roles. This next generation of leaders is hungry for the chance to prove themselves and ready to be kicked out of the nest. Given the opportunity, they will thrive as we did when we were given our chance to lead, and our peers were counting on us to be successful.

The labor market is extremely tight, and the best and brightest of our profession are in high demand. Engaging these young people early in the skills and responsibilities of leadership will help to retain them and ultimately benefit our organizations, as these young professionals prepare themselves to assume these leadership roles much sooner than we ever did. Let’s not underestimate their influence. n

Member News Conover Asay CPAs, PLLC, has hired Janeen Butler, CPA, CCIFP, as a tax manager.

Mack & Rohwedder, P.C. (M&R), has joined REDW LLC effective Nov. 1. As part of this merger, Barbara Rohwedder, M&R’s managing partner, and Claire Oddo, senior accountant, have joined the firm as tax senior manager and tax senior accountant, respectively.

Paige Insalaco, CPA, CFO of Trapp Technology was named 2018 CFO of the Year by the Arizona Chapter of Financial Executives International.

In Memoriam Craig Raymond McEntee, founder of McEntee & Associates, died on October 13, 2018.

Support the Future of the Profession The Arizona CPA Foundation for Education & Innovation supported 14 students with a total of $23,000 in accounting scholarships for the 2018-19 school year. You can support accounting students by making a donation to the Arizona CPA Foundation for Education & Innovation.

Make your donation at www.ascpa.com/foundation. Donations of $50 or more received by December 31, 2018 will be listed in our March/April 2019 AZ CPA magazine.

James L. “Jim” Johnson, founder of Johnson Stevenson & Co., died on October 28, 2018.

Gail Horne, co-founder of Henry & Horne, died on Nov. 5, 2018 at the age of 97.

Xavier College Prep Visit

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Arizona Society of CPAs

ASCPA President & CEO Cindie Hubiak (left) spoke to the accounting class at Xavier College Preparatory about careers in accounting and the CPA designation. The class is taught

by Barbara M. Bond, CPA, MBA, (right) and is sponsored by the AICPA.

DECEMBER 2018 AZ CPA

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A Dash of SALT

Arizona’s 2018 Government Property Lease Excise Tax Reforms In this month’s state and local tax (SALT) column, Busby explains recent changes to Arizona’s government property lease excise tax, which applies to certain government-owned properties leased to private parties. In particular, the changes may affect the ability of some buildings to qualify for the eightyear tax abatement available to qualifying buildings located in designated slum or blighted areas in established central business districts.

Some Arizona municipalities use their property-tax-exempt status to persuade businesses to locate in their jurisdictions by taking title to buildings that the businesses construct on government-owned land and then leasing them back to the businesses.

Arizona’s Government Property Lease Excise Tax In 1996, the Arizona Legislature enacted an excise tax referred to as the government property lease excise tax (GPLET), which applies to the use or occupancy of some of some government-owned properties. In particular, every city, town, county and stadium district that holds title to one or more buildings located on land that it or another political subdivision of the state owns that are available for use for any commercial, residential rental or industrial purpose must levy GPLET, generally at a particular rate per square foot — unless an exemption or abatement applies.

The Eight-Year Abatement Period Qualifying properties located in statutorily defined “slum or blighted areas” within the designated “central business district” of a city or town may qualify for a GPLET abatement for eight years from issuance of the certificate of occupancy.

by James G. Busby, Jr., CPA

James G. Busby, Jr., CPA, is a state and local tax attorney at The Cavanagh Law Firm. Busby previously worked in the SALT departments at Arthur Andersen and Deloitte & Touche. Before entering private practice, Busby was in charge of all transaction privilege (sales) tax audits at the Arizona Department of Revenue.

If you have any questions, please contact the author. He can be reached at (602) 322-4146 or JBusby@CavanaghLaw.com.

The 2018 GPLET Changes The Arizona Legislature recently amended some of the definitions used to determine whether properties qualify for GPLET abatement, and it will soon require cities and towns to periodically review and renew, modify or terminate their designations of areas as slum or blighted.

New Limitations on Central Business Districts Arizona law requires that central business districts must be “geographically compact,” and limits their overall size. Per this year’s amendments, which went into effect on August 3, central business districts may not exceed the greatest of (1) the existing total land area of the central business district of the city or town as of January 1, 2018, (2) 2.5 percent of the total land area within the exterior boundaries of the city or town, or (3) 960 acres.

Until this year’s amendments, Arizona’s GPLET statutes did not define “geographically compact.” Under this year’s amendment, central business districts formed

DECEMBER 2018 AZ CPA

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before January 1, 2018, automatically qualify as geographically compact. Cities or towns that form or expand central business districts after that must satisfy new, arcane criteria in order for them to qualify as geographically compact.

Periodic Reviews of Slum or Blighted Area Designations

Governmental Accounting Conference February 8, 2019 Hyatt Regency Phoenix at Civic Plaza 8 a.m. to 4:30 p.m.

Also Offered as a Webcast

• • • • • •

Arizona’s Future Growth Prospects Leading the Auditor General’s Office Through Change Anatomy of a Fraud GASB Update and In-Depth GASB Report AZ Future Growth Prospects Thinking the Unthinkable: Real World Lessons From Actual Disaster Discovery Recovery Scenarios

• Yellow Book Update • Integrating Multigenerational Workstyles

Thank You to Our Platinum Sponsor:

This year’s amendment requires each Arizona city and town to review each area that they designated as slum or blighted within a central business district before September 30, 2018, on or before September 30, 2020. They must either renew, modify or terminate the designation at that time and do so again every 10 years for those that they renew, modify, or designate as slum or blighted after September 30, 2018. Otherwise, the slum or blighted designation automatically expires five years from the time that the city or town was supposed to review it. Grandfather provisions protect certain planned or existing improvements within areas whose designation as a slum or blighted area gets terminated or expires.

Moratorium on GPLET Reforms While opponents successfully lobbied for significant GPLET reforms over the last several years that have weakened GPELT as an economic development tool for some future projects, they claim that they reached a truce with GPLET advocates during this year’s legislative session. Thus, for now, GPLET remains a viable economic development tool, albeit not as generous as it otherwise would have been for some future projects. n

And Gold Sponsors: CLA (CliftonLarsonAllen) Fester & Chapman, PLLC Heinfeld, Meech & Co., P.C. REDW LLC The Pun Group, LLP

Learn more at www.ascpa.com/gac19 10

AZ CPA DECEMBER 2018

James Busby will be speaking at the ADOR Tax Luncheon on Dec. 10.

Register at www.ascpa.com

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DECEMBER 2018 AZ CPA

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Work on the Business, Not Just in the Business

How to Protect Your Company from Extinction

by M.J. Clark, M.A., APR “Change or die.” That’s what I tell most of my clients.

We get so stuck in what we’ve always done because it’s always worked that we are reluctant to try new things, take risks, and change to match our evolving role, company and industry. Other companies are changing and growing, so if you are staying the same, you’re actually falling behind. Here are ways you can move forward to save your organization (and yourself) from extinction.

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AZ CPA DECEMBER 2018

You probably entered the business doing tactical things, and as you rise in the ranks, you are expected to do more thinking than doing. As a leader, you must “get on the balcony” every now and then to look down on your role, team and business to determine how things are going and what should come next. Thinking about the business instead of just putting out fires all day allows you the space to be creative and to find permanent solutions to problems instead of reacting to them one at a time. Taking time to create a strategic plan with your leadership team, for example, creates alignment and focus, which leads to company productivity and longevity.

Think Beyond Number Crunching Being skilled in your profession is only half the equation. Most people with a very high IQ tend to have a lower EQ (emotional intelligence). According to a UCLA study, people who possess EQ social skills, such as sincerity, transparency and capacity for understanding others outperform those who don’t by a large margin and also are seen as highly likeable.

The very cornerstone of EQ is selfawareness. You know the things you should work to improve, but there are additional perceptions people have of you and are reluctant to share. As an executive coach, I use a 360-degree assessment that provides anonymous feedback to help clients understand the opinions others have of them and how those opinions contrast with their selfperception. This is a very powerful tool.

If you can become aware of, accept, and work to change those behaviors that are damaging to relationships, you will be more productive and successful.

Take Time to Develop Others You might think you don’t have time to coach and develop your subordinates. This time spent can often feel unproductive because mentoring and coaching don’t result in a tangible product. What you are doing is investing in

people now for a future payoff, which I call “leadership time spent.” Some of my clients do not regularly meet oneon-one with individual team members and some don’t have regular team meetings or even annual evaluations. I hear things like “Meetings are unproductive,” or “Everything’s fine, so why take the time?” This is time spent investing in your team, strengthening relationships, assessing any concerns and simply showing each individual that you care.

It’s critical for the development of an effective, interdependent team.

Become a Trusted Adviser Trust has been called the “new workplace currency” and is linked to higher productivity and engagement, according to Human Capital Institute.

A great book about how to build trust, called The Speed of Trust by Stephen M.R. Covey explains that low trust can result in organizational “taxes” and high trust can lead to organizational “dividends.” Some of the low-trust taxes include redundancy, bureaucracy, politics, disengagement, turnover, churn (percentage of employees leaving over a specific time period) and fraud. High-trust dividends include increased value, accelerated growth, enhanced innovation, improved collaboration, stronger partnering, better execution and heightened loyalty.

You build trust, according to the book, by being both highly competent and of high character. In the past, you have probably worked with someone who you liked as a person, but who couldn’t do the job effectively, meaning he or she had high character and low competence. Compare him or her to someone who is highly knowledgeable about the job, but nobody can stand to work with because they have low character. If you are low in one of the areas of character or competence, you’ll have difficulty serving as a trusted adviser. Remember to take time to consider self-trust. Do you do what you commit to yourself to do? That’s truly where trust begins. If you can’t trust yourself, you’ll have difficulty believing in others.

Empower Future Leaders Millennials, those born roughly between 1980 and the late 1990s, are often maligned for needing constant feedback, not taking care of their own conflicts and behaving in an entitled way. This stereotype overlooks the generation’s great strengths that can be leveraged in the workplace. Millennials: • Have an abundance of selfconfidence • Are team-oriented • Are motivated to achieve and are hard workers • Value health and fitness • Want work and life integration (not balance) • Are technologically savvy • Are passionate about values (including company values) • Want an “experience” • Care about the world beyond your business Those who are considered Gen Z, born roughly between the late 1990s and 2014, make up 24.3% of the U.S. population, according to U.S. Census estimates for 2016. That’s more than millennials (22.1%), more than Gen X (19%) and more than baby boomers (22.9%). Although they are considered cynical, private and technology-reliant, they also are entrepreneurial.

In fact, 72% of current high school students want to start a business. This innovative desire makes them great at brainstorming creative ideas and solutions. They are also realistic, independent and tech-savvy multi-taskers.

If you stop focusing on generational deficiencies and start paying attention instead to what these generations do well, you might find they can be key components in keeping our companies from extinction. The people in these generations are the future of our business. Empower and motivate them by: • Offering career coaching: Discuss career paths so they can picture how they will progress.

• Providing learning and training opportunities: Offer options such as tuition reimbursement, and put them in charge of their own clients or projects.

• Allowing space for creativity and flexibility: Let them figure things out and do it their way.

• Asking their advice: Many are technology experts and have a unique perspective on the industry.

Plan for Ownership and Management Succession Succession planning is an evolving, dynamic process that adapts over time to meet an organization’s needs and challenges. It’s not just about planning.

It takes effective execution and followup over an extended period of time.

For both ownership and management succession, I suggest the following for all high-potential future leaders: • Taking a comprehensive 360-degree assessment • Coaching based on those results and observed behaviors through an executive coach • Mentoring through someone who can offer them insightful guidance • Training in the struggle areas • Assessing individual roles (assess abilities, find gaps, plan for future needs) Instead of doing things the way you’ve always done them, you should consider taking a step back and objectively assessing what action steps are necessary in your company and career for the future. Invest time in bettering yourself, empowering your people and planning to achieve your vision. You don’t want to wake up one day and find you’ve been left behind. n M.J. Clark, a senior leadership consultant for Integrated Leadership Systems, helps business owners and senior level directors/managers become more emotionally aware and communicate more effectively to grow their business, plan for succession and become more effective leaders. She is the author of Shut Up and Lead: A Communicator’s Guide to Quiet Leadership. For more information, visit www.integratedleader.com. This article was first printed in the July/August edition of CPA Voice

DECEMBER 2018 AZ CPA

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Training for Success In October 2016, I graduated from the AICPA Leadership Academy. The experience absolutely changed the course of my life, both professionally and personally. The purpose of this article is to help educate Arizona CPAs on why they should want to attend, and why they should want to send their most promising staff to this program.

Initial Sell

by Jessica Iennarella, CPA

My life has never felt more well-balanced.

I believe that balance comes from changing my personal definition of success from reaching the top of a narrow road, to reaching a very high pinnacle (but not necessarily the top) on a very wide road.

Iennarella will be on a panel at the ASCPA Accounting & Assurance Conference on January 9.

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AZ CPA DECEMBER 2018

The AICPA’s Leadership Academy is an annual selectionbased program for leadership-focused CPAs between the ages of 25 and 35. The year I attended, approximately 150 candidates applied and 38 were selected to attend. The AICPA deliberately sets out to split each class between male and female candidates, as well as between practice area, firm/ company size, ethnic background, geographic location and age. This results in opportunity to interact with one a most diverse group of professionals. The program runs for four days, and you will spend literally all day with your fellow classmates. You have the opportunity to interact directly with the senior leadership of the AICPA. My participation in Leadership Academy was my first opportunity to interact with Barry Melancon (president & CEO), Eric Hansen (chair of the board of directors) and Mark Koziel (executive vice president).

I wanted to attend Leadership Academy because, as a natural introvert, I struggled to connect easily with others. I also wanted to develop my professional footprint outside of the work performed for clients.

Major Takeaways The majority of Leadership Academy graduates leave with a changed perspective on the profession and the role they want to play in it. The changes are different for everyone.

Some changes are immediate, and some fall into place years after attending. One of the most unique parts of attending Leadership Academy is experiencing how the information learned, and the connections made, compound over time.

Because Leadership Academy is a unique experience, it is a difficult task to quantify why attending is so beneficial.

All I can do is share my two biggest takeaways to date (I am very confident more are to come).

1. Success Is a Personal Definition Prior to attending Leadership Academy, I defined success as reaching the top of the company ladder, which I think is common for many ambitious, young CPAs. But I was not as excited about that prospect as I should be. I love forensic accounting and can’t envision practicing in another area of accounting, but did success have to be defined as becoming managing partner? After completing the personal evaluations and exercises, and talking to my fellow classmates, I realized the answer is resoundingly no.

There is absolutely nothing wrong with wanting to be “THE” person in charge. However, there are also upper management positions in need of passionate and talented professionals, and aspiring to those positions is an equally worthwhile goal if done for the right reasons. In realizing that maybe a secondin-command type position might suit me best, I also took a leap of faith and expanded my goals beyond just those tied to promotion at my firm. I now sit on multiple committees for both the ASCPA and the AICPA, and I spend time working on an event planning committee for the Arizona Humane Society.

My life has never felt more well-balanced. I believe that balance comes from changing my personal definition of success from reaching the top of a narrow road, to reaching a very high pinnacle (but not necessarily the top) on a very wide road.

2. Connecting With Others Is One of the Best Parts of a Career Leadership Academy deliberately sets out to be a group of diverse people, yet the most surprising part of attending was how accepted I felt. While we come from different backgrounds and have different approaches to solving the problems currently facing our profession, we are, for the most part, startlingly similar in our passion for promoting and bettering our profession. Leadership Academy graduates form an affinity group that has bonds just as strong as those created in more traditional affinity groups (I would argue stronger than some).

The best part of Leadership Academy for me is not just the connection with my classmates from the 2016 graduating class, but the immediate connection to graduates from classes before and after mine. Leadership Academy graduates from different years bond over the shared experience, and the passion for the profession that seems present in all graduates.

Most graduates, especially those that become and continue to be active within the profession after graduating, leave with a nationwide network of other up-and-coming CPAs who they can turn to for honest and educated advice.

Having mentors and advisors within your firm and local community is an excellent first start toward building your personal network. However, in my experience, there is additional value to be had from hearing from those in different geographical spaces, different practice areas and from backgrounds much different from yours. Leadership Academy provides you with an opportunity to form unusually close bonds within a very short period of time, and gives you access to a pool of talent and thought leadership which is invaluable as you navigate your way forward.

Conclusion The application process can be daunting. Because of the deliberate mix in the backgrounds of each year’s selected class, you may have to apply for multiple years to be accepted.

Once you are accepted and you realize how vulnerable you will have to be in front of 37 strangers, you may feel in over your head. Acknowledge those feelings and do it anyway. I don’t know exactly how Leadership Academy will change your life, but I am confident that it will. I am happier, more productive, and more focused in my career than ever before.

You can be too, if you allow yourself the opportunity.

I am always happy to answer questions about Leadership Academy, so please feel free to reach out to me. I hope to see some more Arizona graduates join the list (and congratulations to our newest alumni, Benjamin Field)! n Jessica Iennarella, CPA, is a manager at HSNO Accountants, P.C. She is an ASCPA Champion and is on the Emerging Leaders Comittee. Contact her at jiennarella@hsno.com. For information on the program, contact: LeadershipAcademy@aicpa-cima.com.

Next Emerging Leaders Event: January 26 “In It For the Outcome, Not the Income” Community Service Event with Free Arts (Recommended CPE: 1 hour)

DECEMBER 2018 AZ CPA

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HIGHER WAGES

What Speech is Protected in the Workplace?

by Emily Franchi

Can employees really say what they want about what they believe when they’re at work? After all, it is a free country, right? The answer is yes. And no.

Many employees believe their right to free speech under the First Amendment protects them from adverse employment actions taken against them when they speak their mind about personal beliefs (such as religious beliefs, political beliefs, etc.) in the workplace. While the First Amendment does protect a person’s freedom of speech, the protection is to prevent the government from suppressing a person’s right of speech or restricting what a person can or cannot say in a public forum.

Unless the government is the employee’s employer, the First Amendment does not apply the same way in a work environment.

An employer does have the right to ask employees to focus on their work while in the office and to refrain from discussion that could lead to an emotionally charged conversation. Employers should be careful, though, to apply the rules uniformly and not favor one employee and his or her opinion or beliefs over another. Discrimination based on religion or political affiliation is illegal, but an employer always has the right to request that employees refrain from discussion that is not appropriate in the workplace. Employers also have the right to require employees to remain civil toward each other, and conversations about politics or religion can often spark an argument or a heated discussion.

NLRA-Protected Activity Employees are free to discuss wages, working hours and conditions with coworkers, as those types of conversations are considered protected activity, not under the First Amendment, but rather under the National Labor Relations Act (NLRA).

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Employees should be able to participate in such conversations without the fear of retaliation, provided they are not bullying, harassing or discriminating against one another in the course of their discussions, and they are engaging in “concerted activities” for their “mutual aid or protection.” Employees participating in these conversations should be mindful to avoid suggesting that they are speaking on behalf of others.

Imagine a situation in which a CPA firm employee found a spreadsheet on the copier with information relating to post-tax season bonus payments.

Understandably, he would be upset if he realized that his co-worker, who had far less seniority and had consistently not worked the extra hours that season, earned a substantially higher bonus. Suppose that he shared the confidential payroll information with others in his department and then took to his Facebook page, claiming that the firm had unfair pay practices and that the partners had allowed the higher bonus because his co-worker had engaged in an affair with one of the married partners. Finally, suppose that he shared the information on the firm’s Facebook page.

Suppose that, while this incident ultimately resulted in the firm revising its bonus payout criteria, the firm also terminated the employee. If so, he would not have been terminated for raising the issue, but rather for how

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AZ CPA DECEMBER 2018

he went about it, for making unauthorized edits to the firm’s Facebook page when he did not have administrator rights. Therefore, the NLRA would not have offered protection for his behavior. Had he stopped at sharing the information with other employees and then approached management as a group, his actions would have been protected under the NLRA.

The Google Case: Protected or Harmful Speech?

Just this past summer, an engineer for Google was fired for expressing his beliefs about women in the tech world. After he posted a 3,000-word memo titled, “Google’s Ideological Echo Chamber” on a company internal meme network, Google’s response clearly expressed that the opinions of the employee did not mirror those of the company and were completely against the ideology supported by Google. Regardless, the question remains: Did the employee have the right to share his beliefs with the entire organization?

There are those who believe that the memo highlighted the concerns the employee had about Google’s diversity program, which he thought resulted in exclusion versus inclusion, and ultimately reverse discrimination.

Let’s not forget that the NLRA provides protection for employees participating in conversations about wages, hours and working conditions, provided

the conversations are for “mutual aid or protection.” Certainly, in this case, one could argue that this employee’s concerns about reverse discrimination could very well fall into that category.

Ultimately, the tech giant terminated him for crossing the line by advancing harmful gender stereotypes. In January, the engineer filed a class action lawsuit against Google, claiming the company unfairly discriminates against white, conservative men. Employers should note how this case plays out, since the decision may have wide ranging implications on employee speech in the workplace. Staying ahead of the game is critical. Creating policies that outline boundaries is paramount, and more importantly, it’s imperative that management “walk the walk” and model appropriate workplace behavior. n Emily Franchi is a loss prevention specialist for employment practices with CAMICO (www.camico.com). She provides CAMICO firms that have Employment Practices Liability coverage with support on a variety of human resources management issues, focusing on employee relations and legislative compliance for the workplace. Franchi works with firms to reduce exposure to potential employment practices claims, and she provides education and assistance in creating professional work environments.

Who Uses a CPA? In early September of 2018, the Arizona Society of CPAs commissioned a poll to study voter support for Proposition 126, income tax conformity and to determine who uses a CPA. Arizona voters were asked: “When it comes to the preparation of your annual tax return, which of the following best describes how you handle this?”

The Arizona Society of CPAs found that 54.3% of voters said they use a professional, such as a CPA or an accountant to prepare them, while 18.8% said they use an online tax service, and 21.7% said they prepare them on their own. Interestingly enough, the remaining 5.2% basically said they don’t know how their taxes get done!

When broken down by party affiliation, 58.3% of Democrats use a professional, compared to 51% of Republicans and 54.3% of Independents.

Independents were found to be the biggest users of online tax services — at 21.9% — compared to 16.7% of Democrats and 17.6% of Republicans. Republicans choose to do their own tax returns more than their Democrat and Independent counterparts, with 25.2% of Republicans, 19.4% of Democrats and 20% of Independents preparing them without the help of a professional or online tax service.

Voters were further asked to differentiate between the professionals who prepare their taxes. Voters overwhelming use the services of CPAs, with 57.7% stating that they use a CPA, 31% stating that they use an accountant, while the remaining 11.3% did not know. When broken down again by party affiliation, it was interesting to see that 44.7% of Independents use an accountant compared to 28.6% of Democrats and 18.7% of Republicans, while 66.4% of Republicans use a CPA compared to 65.7% of Democrats and 42.1% of Independents.

The Arizona Society of CPAs also found that of those who own their home, 60.8% use a CPA, 28.3% use an accountant, while the remaining 10.9% said it varies, or they didn’t know.

Polling Methodology: The results of the poll are based on 600 interviews with likely voters throughout the state, balanced by party registration, region of the state, age and gender. Professional interviewers at a state-of-the-art Computer-Assisted Telephone Interviewing facility conducted all interviews. Interviewers worked under the direct supervision of experienced supervisory personnel, who randomly monitored interviews for quality control purposes. All interviews were conducted by telephone, using an equal mix of landlines and cell phones. No data in this study was derived from online survey methodologies. The overall sampling error for this survey is approximately +/-4.1% at the .95 confidence interval. n

DECEMBER 2018 AZ CPA

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Highlights of October Board of Directors Meeting Among other actions at its October 17, 2018 meeting, the ASCPA Board of Directors reviewed the following:

board approved the recommended changes to the strategic plan and beginning the branding project.

Strategic Plan Update Cindie provided an update on the Society, including advocacy activities and PAC contributions. Mike and Cindie provided an update on the opening of the ABV credential to non-CPAs by the AICPA. The board concluded there is still no action to take.

Consent Agenda

Revenue Science Summary

The consent agenda, which included the board minutes, financial statements and member changes from Life to Honorary category, was approved.

Mike Allen initiated a discussion on the science of revenue generation project. Cindie summarized the sessions and discussed potential investment opportunities.

Ginny DeSanto and Sami RaynesHouseknecht each shared a view of the challenges and joys they experience in their life and job.

Revenue Science Next Steps

Other Business

Report From Life & Honorary Selection Committee Molly Montgomery chaired the committee, which included Mark Landy, Peggy Ullmann and Cindie Hubiak. Debra Davenport was approved as a Life Member by the board.

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AZ CPA DECEMBER 2018

Cindie reviewed revenue science outcomes and asked the board to approve recommended measurement changes as well as a budget for branding research and implementation. The

A Day In the Life

No other business was conducted.

If you have questions or would like additional information, please contact Cindie Hubiak at (602) 324-2888; AZ toll free at (888) 237-0700, ext. 203; or chubiak@ascpa.com.

AZ CPA Quick Quiz You’ve Read It, Now Get Credit Take this quiz on AZ CPA content online or submit this hard copy.

Receive a score of 70 percent or more and earn one hour of CPE credit in specialized knowledge. It’s that easy!

Fees: Members: $25 Nonmembers: $40 Online Access Go to www.ascpa.com/quickquiz to access links to all active quizzes. Once a quiz is purchased, a link and password will be emailed to you. Your results will be sent immediately after completion, and certificates are emailed within two business days.

Hard Copy Please select one answer for each question. Fill out registration/payment information below and mail or fax to the Society office. Quiz results and certificates will be emailed to the address provided on the registration form. *This quiz will be available until December 2019. Please note that users have three attempts to pass the quiz with at least a 70 percent score.

December 2018 Issue of AZ CPA* 1. The topic of ASCPA Chair Mike Allen’s column is: m Succession Planning m Next-Generation Leadership m Investment Strategies 2. In James Busby’s SALT column, what does GPLET stand for? m G ove r n m e nt Po l i c y L a t e Extension Timetable m Government Property Lease Excise Tax m Greater Policing of Land Energy Tax 3. Qualifying properties located in statutorily defined “slum or blighted areas” within the designated “central business district” of a city or town may qualify for a GPLET abatement for how many years from issuance of the certificate of occupancy? m 5 m 7 m 8

capacity for understanding others outperform those who don’t by a large margin. m True m False 5. According to U.S. Census estimates for 2016, Gen Z makes up how much of the U.S. population? m 22% m 24.3% m 41.2%

6. Jessica Iennarella attended what leadership program? m Young Leaders Workshop m CPA Ninja Training m AICPA’s Leadership Academy 7. Employees are free to discuss wages, working hours and conditions as those types of conversations are considered protected activity, under: m NLRA m First Amendment m FRAPA 8. In January, an employee filed a class action lawsuit against Google, claiming the company unfairly discriminates against white, conservative men. m True m False 9. According to a recent survey by the ASCPA, who uses CPAs more often? m Democrats m Republicans 10. According to the same survey, what percentage of people use a CPA, or accounting professional, to prepare their taxes: m 42.7% m 48% m 54.3%

Quick Quiz Registration Name: ____________________________________________________ Email:_____________________________________________________ Telephone: _________________________________________________

Payment

m Member: $25 m Nonmember: $40 Checks: Please make payable to: The Arizona Society of CPAs Credit Card:

m Visa m MasterCard m American Express

Credit Card #: _______________________________________________ Expiration Date: _____________________________________________

4. According to a UCLA study, people who possess EQ social skills, such as sincerity, transparency and

Name on Card. _____________________________________________ Mail to: ASCPA, 4801 E. Washington St. Suite 180, Phoenix, AZ 85034-2040; fax to (602) 252-1511 scan and send to ASCPACPE@ascpa.com.

DECEMBER 2018 AZ CPA

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Classifieds Business Opportunities TAX AND ACCOUNTING PRACTICE FOR SALE — Tax and Accounting practice for sale, 90 miles south of Tucson Gross revenue 90,000. Please call Gary Hankins, CPA, at (817) 738-3287.

Employment ESTABLISHED AND REPUTABLE CPA FIRM in beautiful (cool!) Prescott, Arizona seeking experienced tax preparer/accountant, part-time or fulltime. Responsibilities include:-Accurately and efficiently prepare business, individual, exempt org. and Trust tax returns.-Act as a mentor to less experienced staff; review their work and provide guidance.-Research complex tax issues.-Perform tax planning for clients and answer tax questions.-Monthly accounting; payroll; and financial statement prep. Required: Bachelor’s; 3-4 years tax experience; strong accounting skills; Excellent client service. Compen-

sation commensurate with experience and demographic. Benefits, retirement, and education all provided. Generous PTO and flexible schedules. We are a growing, FUN, dynamic team. Contact Gidget S. at Prescottaccountants.com.

MRA ASSOCIATES — Every firm has a culture and the truly inspiring firms have cultures that propel them to innovate and stand out. At MRA Associates, we aim to help people live fulfilled, prosperous lives by being one of those inspired firms. The Senior Tax Associate is an exempt client facing position, including planning, directing, and executing all tax projects effectively. Also, this position develops tax planning techniques for prospective clients and makes general recommendations for appropriate additional services. Apply today by submitting your resume using this link https://grnh.se/f52692e52. Full ad available by request.

ON THE MONEY, LLC — Accountants wanting a flexible schedule & interesting work: On the Money, LLC is seeking independent contractors. By getting & keeping the financials right, we work in an advisory roll for our client’s success. info@onthemoneyaz.com. (602) 989-0524 PROFESSIONAL TAX PREPARER — Permanent position available at established Prescott, Arizona CPA firm.

We are seeking a seasoned, mature tax professional for a challenging tax preparation, review and planning position.

Responsibilities include individual, corporate, partnership and fiduciary tax returns, tax research, and planning tax projections with client. Ultra Tax experience a strong positive, along with QuickBooks and strong accounting skills. We offer significant growth opportunity for the right professional candidate, in a wonderful community

CPEvening

Eat, Drink and Be Educated Sponsored by Enterprise Bank & Trust

January 30, 2019 5:30 – 8 p.m.

Galvanize in the Warehouse District 515 E Grant St., Ste. 150 Phoenix, AZ 85004-2750

Sponsored by

What is Galvanize? Modern, urban campuses where culture is shaped by first-time entrepreneurs and growing startups.

Join us as we learn about this learning community and the technology making it possible for anyone with fortitude and resourcefulness to change the world for the better.

Meet some of your colleagues from firms and businesses in the Phoenix area and engage in great conversation.

Appetizers and one drink ticket are included with your registration of $25.

www.ascpa.com/cpevening 22

AZ CPA DECEMBER 2018

in north-central Arizona known as Everybody’s Home Town! Please submit resume to vrpcpa@cableone.net.

Opportunity, Benefits, Competitive Salary DOE. larry@partridgecpas.com.

SEASONAL TAX PREPARER FOR PRESCOTT VALLEY CPA FIRM — Siegler & Ferry CPAs, PLLC — Seasonal tax preparer needed for Prescott Valley, AZ CPA firm. FT or PT from January - April. Flexible hours. Must have individual tax preparation experience.

Experience with Lacerte tax software is a plus. Send resume to info@ferrycpa.com.

Please include “Seasonal Tax Preparer” in the email subject line.

OFFICE SPACE FOR LEASE — Office sharing in beautiful office just north of NWC of Tatum/Shea. Executive office $800, interior office $650. Ample parking, conference rooms, seminar room, copier, telephone, and internet ready.

Contact Clara at (602) 953-5000 or clara@lofygrouptax.com.

TAX PREPARER — Partridge & Associates CPA’s, PLC, N-Scottsdale CPA Firm seeking Tax Preparer to prepare business and personal returns. Must have three-years recent experience in preparing returns, Quickbooks Proficient. Preference for EA/CPA. Growth

Office Space

16TH STREET & GLENDALE/ PROFESSIONAL OFFICE SPACE — Ideal location near SR51! Office suites available in shared professional office.

Perfect for CPA, Attorney, or Financial/ Estate services. Parking, conference room, and office services. Great rate on short term lease! Contact ira@felco.biz or (602) 850-5110.

Emerging Leaders Community Service Event: January 26

“In It For the Outcome, Not the Income” with Free Arts (Recommended CPE: 1 hour) Sign up at

www.ascpa.com

2019 Arizona Tax Guide Order the only comprehensive guide on Arizona taxes.

Authors: Pat Derdenger, Steve Rodis and Ed Zollars New in the 2019 Arizona Tax Guide:

• MRRA changes to the alteration limitations and exclusion of contractors not required to be licensed by the Registrar of Contractors from the prime contracting classification • Option to bypass OAH and appeal directly to the State Board of Tax Appeals or the tax court • Required registration with the DOR for online lodging marketplaces • Information on dealing with the unknown status of Arizona’s conformity with provision of the Tax Cuts and Jobs Act

The Arizona Tax Guide includes the following guides: • The Arizona Income Tax Guide • The Arizona Sales and Use Tax Guide • The Arizona Personal Property Tax Guide • The Arizona Unclaimed Property Guide

Pre-order by December 18, 2018 and save!

Guides are available in a spiral-bound, hard copy or an electronic PDF version.

Guides will be available for delivery mid-January 2019.

Order online at www.ascpa.com/taxguide DECEMBER 2018 AZ CPA

23

PRSRT STD U.S. Postage PAID Phoenix, Arizona Permit No. 952

Arizona Society of CPAs 4801 E. Washington St., Suite 180 Phoenix, AZ 85034-2040

ADDRESS SERVICE REQUESTED

BUSINESS BREAKUPS ARE HARD CALLING FOR EXPERTISE ISN’T STEVEN N. BERGER (602) 222-4976

3636 NORTH CENTRAL SUITE 700

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AZ CPA DECEMBER 2018

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PHOENIX, AZ 85012

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EBLAWYERS.COM

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602.271.9090