Advocacy

Govenor Cuomo Signs Law to Provide Relief for Small Businesses Through Reduction of MTA Payroll Tax

December 21, 2011

The Chamber has been an outspoken opponent of the burdensome MTA payroll tax. To learn more about this new bill providing relief to small businesses, click here.

Chamber Joins the Fight Against Toll Increases

December 21, 2011

The Chamber of Commerce, in conjunction with Staten Island businesses, residents, and elected officials, has been vocal in the fight for fair and equitable tolls in our community.

Read more about what the Chamber has been doing to combat onerous tolls that put Staten Island businesses and residents at a competitive disadvantage, then write Governor Cuomo's office in Albany asking him to re-examine disastrous toll hikes.

The Chamber would like to thank its Small Business Committee for helping to organize the rally in November.

A special thank you also to Margarella Industrial, for allowing us to hold the rally in the shadow of the Bayonne Bridge.

We would also like to thank the following business groups for their continued and dedicated support in fighting Staten Island toll increases.

Buck's Business Network

Building Industry Association

Staten Island Board of Realtors

Staten Island Economic Development Corporation

S.I. Home Improvement Contractors Association

West Brighton LDC

Chamber Testifies Against MTA Payroll Tax

October 26, 2011

On October 25th, Chamber President & CEO Linda Baran testified against the MTA Payroll Tax, which requires employers to pay 34 cents to the MTA for every $1,000 of payroll. Assemblywoman Nicole Malliotakis brought the NYS Assembly Minority Steering Committee to Staten Island to hear firsthand how this tax was affecting businesses and residents alike. Ms. Baran testified that Staten Island businesses were subject to the tax, yet saw no returns in the form of increased transportation on the Island. Chamber Board Member Joe Tornello, President of Meals on Wheels also testified, as did Small Business Committee Members Annamarie Gentile (Angiuli & Gentile, LLP), Jim Thomson (Jim Thomson, Russo, Scamardella & D'Amato), and Michael DeFelice (Northwestern Mutual Financial Network). Other Chamber members who testified included Sal Sottile (Sottile Security), Carol Dunn (Staten Island Inter-Agency Council for Aging Inc.), and Fern Zagor (Staten Island Mental Health Society, Inc.).

Click here to read the Chamber's testimony in its entirety.

Port Authority Bridge Toll Increase Opposed by Chamber

August 17, 2011

On August 16th, Chamber President & CEO Linda Baran testified against the Port Authority's proposal that would have doubled the tolls on the Goethals, Bayonne and Outerbridge crossings in the next three years. While recognizing the importance of replacing the Goethals Bridge and the necessity of increasing the airdraft beneath the Bayonne Bridge, not to mention the mucjobs those project would create, Ms. Baran was adamant that Staten Island businesses and residents should not bear the burden of dramatically increased tolls and called on Governor Cuomo to veto the proposal. Ultimately, Governors Cuomo and Christie acquiesced to a toll increase, albeit smaller than the Port Authority originally requested.

Click here to read the Chamber's testimony in its entirety.

Chamber Addresses Interest Assessment Surcharge

July 27, 2011

Recently, the Unemployment Insurance Division of the New York State Department of Labor sent out a notice to employers that they would be assessed an “Interest Assess Surcharge” at the rate of $21.25 per employee. The notice goes on to state that payment must be received by August 15, 2011. This unanticipated cost, coupled with the extremely short turnaround period, puts many businesses in a difficult, if not impossible, situation. The Chamber is actively working to eliminate the surcharge, or, at the very least, delay the due date so employers have adequate time to find a way to pay for it.

Chamber Goes to Washington!

June 1, 2011

The Staten Island Chamber of Commerce recently returned from our annual trip to Washington, D.C. This year, Chamber President & CEO Linda Baran, Chairman of the Board and Managing Partner of the Richmond Group Wealth Advisors, Solomon Chemo, and Government Affairs Director Geoff Kravitz we were joined by a group of 12 members interested in meeting our federally elected officials face to face in order to tell them first hand about the business climate in Staten Island. Those who donated their time and resource to make the trip included Tom Beyar, Owner of Beyar’s Market, Susan Browning, Senior VP for Business Development and Practice at Staten Island University Hospital, Tony Carro, President of NY Health Exchange, Anthony Carro, Consultant with NY Health Exchange, Bob Cutrona, Owner of Project One Services, Glen Cutrona, Owner of Glen V. Cutrona Associates, Meagan Devereaux, Chief of Staff to Staten Island Borough President James Molinaro, Annamarie Gentile, Supervising Partner at Angiuli & Gentile, LLP, Jack Hoffman, Director, Community Relations and Operations for Affiliated Computer Services, Henry Salmon, President of Equity Valuation Associates, Joseph Sciame, Vice-President for Community Relations for St. John’s University, and Steve White, Owner of Staten Arts Photography.

This trip would not have been possible without generous sponsorships from the following organizations:

Gateway Arms Realty: Lincoln Dinner Reception Sponsor
Affiliated Computer Services: Lincoln Dinner Reception Sponsor
Victory State Bank: Cocktails on the Hill Sponsor
Staten Island Home Improvement Contractors: Jefferson Lunch Sponsor

Upon arriving in D.C. in the early afternoon of Tuesday, May 24th, the first order of business was to join the U.S. Chamber of Commerce for a speech by retired General Stanley McChrystal and a quick briefing. General McChrystal, now a professor at Yale University, spoke about “plywood” leadership and the importance of putting together a strong team that can continue to succeed even in the absence of top level management. After the speech, the Chamber met with several U.S. Chamber staff members and received a briefing on small business tax issues and the current status of the healthcare law.

Following that, the group met with Senator Gillibrand. The Chamber impressed upon the Senator the importance of transportation projects on Staten Island, including a transit solution for the North Shore and roads through Fresh Kills Park. The Senator said that her position on the Senate Committee for the Environment and Public Works puts her in a good position to include funds for these projects in the transportation reauthorization bill. She also stated that she will fight for funding for water infrastructure projects to help control water rates. Finally, she asked the Chamber to help unemployed veterans on Staten Island find employment.

That evening, members of the Staten Island Chamber of Commerce and the Brooklyn Chamber of Commerce joined together for dinner at Bourbon Steak in the Four Seasons Hotel. Members of both chambers met, mingled, and made business connections while enjoying an elegant meal overlooking the Potomac River.

The next morning the Chamber met with Congressman Grimm. First, we met with the Congressman’s Legislative Director about our transportation and healthcare priorities. We learned that no additional legislative repeals on the healthcare law are likely and that the timeline for the state insurance exchanges will likely be delayed until the Obama Administration has fully flushed out all of the details. When Congressman Grimm arrived, he spoke earnestly about the uncertainty of the business climate, including rising healthcare costs, uncertain financial services regulations and other issues that impede a business’s ability to plan for the future. Additionally, his Legislative Director offered to write a letter in support of the New York Container Terminal expansion and showed significant interest in forming a Small Business Task Force to keep Congressman Grimm informed about small business issues in his district.

After meeting with Congressman Grimm, the group trekked across the capital to meet with Governor Cuomo’s Washington, D.C. Director, Hilary Jochmans. In addition to reiterating our transportation priorities, we expressed our concern with the length of time it takes to get a project approved by the NYS Department of Environmental Conservation (DEC) and our cautious optimism that things would improve under the guidance of the new Commissioner and Region 2 Director. We also stressed the fact that businesses need to be involved in the creation of the state health insurance exchanges, that a role must be found for expert brokers who know and understand the insurance system, and the significant under-enrollment in the New York Bridge program for individuals with pre-existing conditions. Ms. Jochmans appeared very receptive to our issues and offered to share our concerns with the Governor’s NYC representative.

Our penultimate meeting was with Senator Schumer’s Financial Services Legislative Aide, Jonah Crane. We impressed upon him the need to for a transportation system on the North Shore and that the Senator’s support would be necessary once the Environmental Impact Study was completed in order to secure construction funding. We discussed the difficulty of getting approval from the DEC and asked that the Senator continue to apply pressure if the DEC continues to prove inflexible. On the issue of healthcare, we talked about the need to repeal the “Cadillac Tax,” which is expected to affect 60% of Americans by 2016, and the implications of including healthcare expenses on employees’ W-2 tax forms. Finally, we discussed the importance of providing funding for both water infrastructure mandates and harbor dredging.

The Chamber’s last meeting was with Faith Cole, a Legislative Fellow in the office of Senator Robert Menendez (NJ). Our purpose in meeting with Senator Mendendez’s office was to gain support for increased regional connectivity between Staten Island and New Jersey. We stressed that with the replacement of the Goethals and Bayonne Bridges, now was a critical time to get stakeholders from both states in a room to discuss how best to proceed. Ms. Cole seemed extremely receptive to the idea of working with the Chamber to set up a meeting in the near future.

Members had plenty of time to reflect on the various meetings during the train ride home, which was delayed for several hours due to a downed power line. Despite the delay, the overall feeling was one of satisfaction having heard a speech by a retired four-star general, received a briefing by the U.S. Chamber of Commerce, met with a Senator, a Congressman, the staff of two other Senators, and Governor Cuomo’s Washington D.C. Director. Not bad for a brief, 36 hour trip to our nation’s capital!

"Living Wage" Update

May 17, 2011

Recently, there has been a lot of debate and misinformation about City Council bill 251-A, the "living wage" bill. This legislation would require anyone who receives $100,000 or more in city subsidies, or any subcontractor, tenant, or subtenant of someone recieiving such a subsidy, to pay their employees $10/hour with benefits or $11.50/hour without benefits. At a recent City Council hearing, hours of discussion by council members prevented them from hearing important testimony from the public and the business community. Please see the following links for more information:

Water Board to Raise Rates 7.5%

May 2, 2011

The NYC Water Board is expected to raise water and sewer rates another 7.5% for Fiscal Year 2012. Although less than the expected 11.5% increase, rates have spiked more than 90% since 2006. Safe, drinkable water is a necessity, however these annual rate hikes have become untenable for local businesses. To learn more about the Chamber's opposition to this rate increase, please see Linda Baran's testimony from the hearing on May 2.

Sales Tax Exemption on Clothing and Shoes Changes

April 5, 2011

Last year the state legislature eliminated the sales tax exemption for clothing and footware costing less than $110. As of April 1, the tax exemption has been partially reinstated. All purchases of clothes and shoes costing less than $55 are now exempt from the state sales tax. The full exemption on purchases of less than $110 will resume on April 1, 2012. For more information please visit the NYS Department of Taxation and Finance's website.

Wage Theft Prevention Mandates

March 28, 2011

The Wage Theft Prevention Act goes into effect on April 9, 2011. The legislation mandates that every year, and upon the hiring of a new employee, the employer must provide employees with annual written notice, in the employee's primary language, of:

the employee's rate(s) of pay and the basis for such pay;
how the employee will be paid (by the hour, shift, day, week, salary, piece, commission or otherwise);
whether the employer will claim any allowances as part of the minimum wage (tips, meals, lodging, etc.); and
the regular pay day, the employer's name and any doing business as names, the employer's main office or principal place of business and mailing address, and phone number.

The law also requires employer's to provide the following information regarding employee's wages:

dates of work covered by the payment;
the employee's rate(s) of pay and the basis for such pay;
how the employee will be paid (by the hour, shift, day, week, salary, piece, commission or otherwise);
any allowances the employer claimed as part of the minimum wage;
the employee's gross wages;
any deducitons from the employee's gross wages;
the employee's net wages; and
the employee's overtime pay rate and number of regular overtime hours worked, if applicable.

Additionally, the Wage Theft Prevention Act stiffens penalties for violations of the law. Employees may now be entitled to reinstatement, full back pay and front pay and up to $10,000 in liquidated damages if an employer is found to have retaliated against an employee for the employee's complaints of New York labor law violations. Employers also face criminal penalties. Failure to pay minimum wage or overtime is a class B misdemeanor with fines reaching up to $20,000 or one year in prison. A second conviction within six years could result in a felony conviction. Lastly, the law requires that an employer must post a notice, in an area visible to employees, informing employees that the employer violated the New York wage laws.

For more information, please visit the NYS Department of Labor website.

NYC Energy Conservation Code Requirements

March 28, 2011

The recently passed New York City Energy Conservation Code (Local Law 85) is more stringent than the state code, requiring thousands of more building projects to meet energy efficiency requirements. For commercial and multi-family buildings of 50,000 square feet or more:

Local Law 84 requires the building owner to file an energy and water use report by May 1, 2011.
Local Law 87 requires the building owner to hire a registered design professional to perform an energy audit and file an energy efficiency and retro-commissioning report beginning in 2013.

2011 Tax Update

March 28, 2011

Employees will be enjoying a 2% tax holidy on their social security taxes in 2011. Workers' share of social security contributions has been reduced from 6.2% to 4.2%.

Additionally, the 2010 tax structure has been extended through 2011, including the Bush tax cuts of 2001 and 2003.

Senator Charles Schumer Announces: Employer Partnership of the Armed Forces

March 16, 2011

The Employer Partnership of the Armed Forces seeks to address the high level of unemployment among New York’s population of recent veterans. Consider taking advantage of this great tool for connecting your employment openings with qualified veterans.

The Employer Partnership of the Armed Forces is a valuable resource which helps employers and veterans find job matches. The partnership represents public-private collaboration and includes a state-of-the-art web portal which allows employers and applicants to search one another based on specific skills and other criteria. www.employerpartnership.org. For more information, they can also be reached at 877-450-4473.

Suggestions For Improving NYC Department of Buildings

February 28, 2011

At the request of Deputy Mayor Stephen Goldsmith, the Chamber sent a letter detailing several ways in which the Building Department could improve efficiency. The Chamber suggested that employing more experienced architecture and engineering professionals might alleviate some of the communication issues between the Building Department and developers. On the issue of inspections, the Chamber recommended that the various inspecting agencies coordinate a single day for inspections and limit reinspections to issues uncovered during the initial inspection. Finally, the Chamber posited that the current Building Code does not take into account the extreme variation of buildings, neighborhoods, and construction projects within the five boroughs and that inconsistent interpretations make it nearly impossible for professionals to accurately estimate a project's cost.

Click here to read a copy of the Chamber's letter to Deputy Mayor Goldsmith.

Chamber Urges Support for Resident Toll Discounts

February 28, 2011

The Staten Island Chamber of Commerce recently sent a letter to Congressman Michael Grimm asking him to support federal legislation that would preserve the toll discount that Staten Island residents currently enjoy.

Click here to read the Chamber's letter and click here to read Congressman Grimm's press release on the issue.

Chamber Supports Tax Abatement for Construction Industry

January 24, 2011

Recently, the chamber wrote a letter in support of a bill currently before the State Assembly that would reinstate the tax abatement for newly constructed one, two and three family houses. This bill would significantly help the construction industry, which was hit the hardest during the recent economic downturn. In 2009, more than 600 Staten Island construction workers lost their jobs and over 28,000 construction-related jobs were lost statewide. Since 2006, the state has lost nearly $125 million in sales tax revenue and nearly $6 million in property tax revenue. In addition to putting Staten Islanders back to work, this bill would help reduce the state deficit and jumpstart the local economy.

Click here to read a copy of the Chamber's letter.

Governor Paterson Vetoes Prevailing Wage Bill

December 23, 2010

After more than six months of opposition by the Chamber, the Governor announced that he has vetoed the prevailing wage bill. The bill would have required private utility companies to pay workers a prevailing wage above and beyond the minimum wage. Governor Paterson recognized the danger of mandating wages for workers in private companies and stated:

"...we think, particularly the business districts would have been severely harmed by the passage of this legislation. And right now, in the middle of a recession, it is very hard to start creating a new wage cycle."

Chamber Takes Action

December 10, 2010

Recently, the Chamber the following three letters on various issues affecting businesses on Staten Island:

2010 Candidates' Positions on Business Issues

October 18, 2010

This year, the Chamber reached out to candidates for public office regarding their positions on various issues of critical importance to the business community. Here are their responses:

PAID SICK TIME BILL SHELVED BY SPEAKER QUINN

October 14, 2010

The 5 Boro Chamber Alliance stands in full support of New York City Council Speaker Christine Quinn's decision regarding the Paid Sick Leave bill at this juncture. Her position recognizes the negative impact this would have on the employers who create and keep the jobs necessary to get us back on the road to economic recovery. We would also like to thank Speaker Quinn for weighing all sides and not rushing into a decision on a bill that has such a significant impact on the City's economy.

While we fully recognize the good intentions of this bill the reality is there is an unintended consequence that would ultimately hurt the NYC workers it purports to help. The business community has made it clear we support the right of workers to take time off for legitimate illness without fearing job loss. Both the Speaker and Mayor Bloomberg recognized the City Council bill went far beyond protecting sick employees from retaliatory firings. Int No 97 would slow job growth, interfere with employer-employee relations and stick businesses with a significant cost during the worst economic period in generations.

The recent study by the Partnership for NYC shows only 12% of workers do not have paid leave, and, most of them work for small businesses that simply cannot afford it. Having government micro-manage the way independent businesses are run flies in the face of everything that allows the creativity of entrepreneurship to thrive in this City.

This is the wrong bill, with the wrong approach at the wrong time. If you want to move forward, then reconsider the implications of such a bill and find another way to protect employees wrongfully fired.

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FOR THE LATEST MEDIA COVERAGE OF THIS SORY, VISIT THE FOLLOWING LINKS:

No NYC Paid Sick Leave Bill For Now

Council Speaker Christine Quinn shelves plan to make private employers provide sick leave

City Council Speaker Christine Quinn to Oppose Paid Sick Bill

Quinn Moves Against Sick Pay Bill

Council Speaker to Oppose Mandatory Paid Sick Days

Quinn saved women's jobs

PAID SICK TIME STUDY RELEASED

October 12, 2010

The Partnership for New York City recently conducted a survey regarding the Paid Sick Time legislation, proposed by City Council.

After surveying 708 employers who collectively employ 414,000 workers in the city, representing 13 percent of the private sector workforce, it was determined that 88% of all New York City private sector workers have access to paid leave that can be used when they are ill. A total of 77% have explicit paid sick leave benefits through their employers, compared to 62% of private sector workers nationally.

The study also concluded that if the Paid Sick Time proposal were to pass, it would increase private-sector payroll costs in the city by 0.3%, or a total of $789 million per year.

In summary, the results of the employer survey show that the direct and potential indirect costs of the Paid Sick Time Act are more significant than they at first seemed. The New York City Partnership and the SICC agree that City Council should not proceed with a Paid Sick Leave mandate on private employers at this time.

On the heels of the study's release, much progress has been made on the pending legislation. Following a recent meeting with city legislators, the 5-Borough Chamber Coalition has continued to work hard in opposing this ill-timed proposal.

The study is available here.

Health Care Law's Onerous 1099 Reporting Mandate

September 21, 2010

Of all the hidden costs now being discovered in the health care bill, one of the most onerous to the small business community is Section 9006, which would require all businesses that purchase more than $600 of goods or services from another business to submit a 1099 tax form to the IRS. Credit card purchases are exempt from this reporting requirement, however, beginning in 2012 all other types of transactions will be subject to this mandate, unless we do something to stop it.

At a time when our economy needs small businesses like yours to help our country grow out of this recession, adding expensive new requirements and paperwork mandates only further impedes your ability to succeed and ultimately aid in our economic recovery.

For more information, click here.

Click here to send letters to your elected officials.

Health Care Implementation Timeline

September 17, 2010

Congress passed the health care reform bill on Sunday, March 21, and the President signed it into law on Tuesday, March 23. After surveying numerous sources we have compiled the following timeline of provisions that affect businesses:

2010:

Employer Tax Credit: Small businesses with 25 or fewer employees and average wages of less than $50,000/year are eligible for a tax credit worth up to 35% of its health care costs. Click here to learn more or use this form to determine whether you are eligible for the tax credit. More information on the appropriate IRS form to apply for this credit is available here.

2011:

IRS Reporting Requirement: Employers must begin reporting the value of the plans they provide to their employees.

2012:

IRS 1099 Requirement: For every purchase of goods or services in excess of $600, the purchasing business must provide the seller or service provider with a 1099 form.

2013:

New Medicare Tax: Individuals making more than $200,000 (or married couples making more than $250,000) will be subject to a new tax.
Increase Wage Tax: Medicare tax on wages increases to 2.35% (0.9% increase).
Unearned Income Tax: 3.8% tax on unearned income (dividends, interest, etc.).

2014:

Individual Mandate:Exceptfor low-income individuals, nearly everyone will be required to be insured by 2014, or pay a fine.
Exchanges:small businesses can purchase insurance plans through state-based insurance exchanges.
Employer Tax Credit: Small businesses with 25 or fewer employees and average wages of less than $50,000/year will be required to purchase insurance through an exchange in order to qualify, however, the maximum credit will increase to 50% of health care costs.
Employer Fee: Employers with less than 50 employees are exempt from the fee. Employers with 50 or more employees will be fined up to $3,000 per employee if the government subsidizes workers’ coverage; however, A business’s first 30 employees are exempt from this fee.

2017: