PROFESSIONAL SERVICES OVERVIEW
tougher restrictions on the tech industry regarding the use, management and protection of that data. The same actions can be seen with biometric data protection laws. As they stand, New Jersey’s breach notification statutes stipulate that if a local business were to experience a data breach compromising personal information of only New Jersey residents, that business would then be obliged to provide a report to both the state and the people affected. Failure to do so in a timely fashion warrants a hefty fine. The move to reduce the 1031 Exchange is among the legislative actions lawyers are watching carefully. While no date is yet set for its implementation, should it pass Congress, investment firms anticipate it will fundamentally change the way investors analyze whether to sell or hold a property. It is also poised to impact the various real estate segments differently, depending on how heavy their reliance on 1031 investment is. Retail, for instance, leans heavily on 1031 Exchange tax breaks. The expectation for such a measure is that investors will demand higher yields to make up for the removal of the tax benefit, fostering a cap rate hike in real estate segments where 1031 investment is dominant. The sector also faces other challenges, with a backlog at the courts as a result of COVID-related restrictions and labor availability among the leading issues. Looking ahead The pandemic has acted as a turning point for the professional services industry. As firms take in the lessons learned from the pandemic, considerable efforts will be directed toward securing sustainable and resilient businesses, with risk mitigation protocols against unforeseen events at the forefront.
Perspectives: Pandemic fallout Reynold Cicalese Managing Shareholder – Alloy Silverstein There has been a lot of assistance to individuals and businesses over the last year. Sooner or later, somebody has to pay for it. I would think that when you look at what is going to happen over the next 12 months concerning the tax plan, that will dictate how well people get out of this. You have to look at how strong businesses are and who’s going to pay for all the assistance in the long run.
Charles Grimley CEO – Grimley Financial Corporation (GFC) We have been humbled by what we have been through and to some extent fortunate and blessed to be here. There is a sizable, ongoing change, which tests your mettle and ability to be nimble and adapt. All the things you learned about business have been put to the test since last March, and it’s far from over. Fortunately, we are blessed to have employees that have been with us on average for 12 years, and we are ideally positioned to grow in our space.
Mark Sulpizio Founding Partner – Innovative Benefit Planning I think most employers are feeling the effect of the tight labor market. New talent acquisition and employee retention are on most employer’s plans going forward. In addition, as a result of the pandemic, employers are rethinking their remote work environments, as well as other total reward perks, so it’s important employers review their handbook policies to confirm they reflect any changes.
Lee Sheilds Co-Managing Partner – Friedman LLP Tax compliance is absolutely the main concern. All these programs — although they were great programs that were needed — require a lot of reporting. These are federal grants and loans, so you really don’t want to misrepresent the facts. The applications were quite cumbersome on account of the fact the legislation was rushed through faster than any stimulus package in the history of our country. Then the rules changed many times over, so we had to keep an eye on that. Our clients need to follow the rules and, in this case, the rules were often misrepresented, vague or open to interpretation.
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