When legislation affects your business customer’s cash flow, it also affects their relationship with you, the financial institution.
Check 21 could have a serious effect on your customers’ ability to enjoy the float on their account. HB 197 may affect cash flow of your customers doing business within the City of Pittsburgh.
For your institution to maintain goodwill with customers in the face of these changes, prompt and accurate communication can be useful. It gives your business customers a “heads up,” enabling them to plan properly and prevent cash flow problems. It also may open the door to providing cash management services or other options to help customers proactively handle their cash flow needs.
HB 197, commonly referred to as the City of Pittsburgh bailout legislation, provides for a tax on payrolls not to exceed fifty-five hundredths of a percent on employers conducting business within the city. Employers must file returns and make payments on a quarterly basis. In the past, many businesses enjoyed exemption from the business taxes levied by the city. Thus, to these and other businesses, this tax may have a significant impact on cash flow.
Check 21, of course, requires that businesses understand how the period for the clearing of checks will shorten.
Often your business owner customers do not have the time or resources to focus on legislation – even when it affects their vital cash flow. You are in a position to provide the information they need and, in doing so, cement your good relationship. Maiello Brungo & Maiello can assist you in developing appropriate correspondence to send to your customers affected by these and other legislative changes.