SCAHACC Spring Newsletter

Members Advance Legislative Agenda

South Carolina’s Heating and Air Conditioning Professionals

at the legislative breakfast

Are your insurance premiums too

To send your risk manager to our informative Designated

Risk Manager Training Program, contact your

local Federated Marketing Representative or

Jina Duchnowski at Federated 1-800-533-0472, ext. 455-5604.

The key to cutting insurance costs is…

Controlling Losses

High?

“I didn’t realize how much distracted driving impacts our safety and work comp.”

“The session on employment-related practices liability addressed an immediate problem within our company.”

“The seminar made me think about many risk management steps we’ve never taken at our shop. I have some ideas I plan to start implementing ASAP.”

“I didn’t realize how scary it can be to own a business. This was a very eye-opening seminar. I hope to better our company with the information and resources I received.”

Key Agenda Items: Contractor Industry Losses Underwriting Your Business Industry Input Session Contractor Loss Keys

· MVRs/Drivers’ Standards Distracted Driving Hire, Screen, Retain Managing the Ultimate Risk Contractor Claims Handling Employment-Related Practices Liability Risk Managing Your Workers Compensation Federated’s Shield Network

SM

Upcoming Contractor Designated Risk Manager

Seminar

August 15-17, 2011Owatonna, MN

*Federated Service Company is not licensed in the states of NH, NJ, RI, and VT.

S o u t h C a r o l i n a ’ s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

Inside This Issue

5SCAHACC member meet at the State-house with legisla-tors for breakfast.

7Updates to the 2011 Federal Payroll taxes: withholding, pension, fringe ben-efits and more.

8Convention Wrap UP: List of our 2011 vendors and picture collage from the convention. (More pictures on our fan page on FACEBOOK.)

12Chapter Meetings: Update and Upcom-ing. Participation helps you find value in your member-ship.

11Member Spotlight: Board Member, Tommy Sinn, TSC shares information about his thoughts of SCAHACC.

16Spartanburg TXV Training: Register for the training on March 31st.


Thank you for helping move this industry foward.

Executive CommitteePresidentScott Kelly Carolina Heating ServiceVice-PresidentLee Boylston Holley Heating & A/CSecretaryTodd Wagstaff Comfort Services, Inc.TreasurerJill Marshall Santee CooperCo-TreasurerJ.D. Steedly Santee CooperImmediate Past PresidentVerlon Wulf Carolina Cool

Board of DirectorsGary Andrews Progress EnergyMichael Atkins At Your Service, Inc. Gilly Bailey Climatic Comfort ProductsGene Bishop Bishop’s Heating & ACMedd Box AirMaxAnne Campbell Carrier EnterpriseVan Edwards Edwards Refrigeration, Inc.Joey Henderson General Wholesale DistributorsTee Hooper General Wholesale DistributorsBrad Myers Climate Control, Inc.Jeff Owens McGee Heating & A/CRandy Pardee Pardee’s Refrigeration & A/CRichard Powers Piedmont Natural GasHenry Powers Powers & Gregory, Inc.Bill Rathbun Johnstone Supply of ColumbiaJoel Reese SCANABret Ross WaterFurnace, Int’l.Jeff Singletary Pee Dee Electric CooperativeTommy Sinn The Service Company Inc.John Tuckwiller Carolina Air, Inc.Kevin Williamson Broom Heating & A/C

BOARD MEMBERSPRESIDENT’STH

E LETTERHello SCAHACC Members:

It’s three months in to the new year, and it has been a slow start in my business. I call it the 1st quarter blues. It seems no matter how slow our work gets, I always run out of time to get to every-thing. I think I need to go to that priority management class.

I did recently get to the ACCA conference in San Antonio. Our Executive Director Leigh Faircloth attended as did our mem-ber Rhett Prosser of Waccamaw Heating and Cooling, LLC in Pawleys Island. Rhett was even quoted in ACCA’s newsletter. I think it’s good to go to a national conference to learn what’s new and meet other contractors from across the country. At-tending the national convention made me even more proud of our association and our convention. I believe our conven-tion is the quality of that you see at a national level. In fact, ACCA opened its meeting this year with a group called Drum Cafe; SCAHACC had that group at our convention two years ago. If you have never been to our conference you’re miss-ing out. I encourage you to plan on attending next year. You will be glad you did. If you haven’t heard we have a bill working its way through the legislative process. It is H.3473 The Consumer Protec-tion Act. Please help us get this bill passed. We try to keep you informed of its progress and the need for your assistance through e-mailed updates and our video updates. You can also find the latest information on our Facebook fan page.

I want to thank everyone who has worked to get the bill to where it is now. Our Legislative Committee and our lobbyist are hard at work staying on top of the legislative activities that affect our industry and businesses. I encourage you to let them know what a good job they are doing. I think the Greek Philosopher Plato had it right when he said,“One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors.” Get involved and make a difference.

We have chapter meetings going on now and training ses-sions are here too. Please support you chapter by showing up. Invite a guest to come along. Just last week I attended Charleston’s chapter meeting with more than 70 people there! What a turn out! I have attended two chapter meet-ings so far this year. Each had a great attendance. Please attend your chapter meeting to show your support for our industry.

I’m looking forward to a hot and profitable summer. I know that is what we all want and need. As always, please know that I or the association staff are only a phone call or email away if we can ever help with any concerns you have.I’m looking forward to see you at our upcoming events.

Scott KellySCAHACC President

Please help thank these folks who give freely of their time

to make ALL of our businesses better!


Your association’s leadership chose 2011 as the year to reinvigorate our campaign to work to-wards passage of the HVAC Consumer Protection Act. We are off to a great start with strong support.

House Bill 3473, the HVAC Consumer Protection Act, was introduced by Representative Bill San-difer (R) who represents Oconee County. He is chairman of the House Labor, Commerce and Industry Committee, a key House committee that deals with numerous small business issues. A long time supporter of small businesses and the HVAC industry, Chairman Sandifer lends a great deal of leadership and credibility to our efforts. Prior to his service in the House, he was a strong community leader serving as president of the South Carolina Funeral Directors Association, a member of the Seneca Chamber of Commerce, and chairman of the board for Oconee Memorial Hospital among his many leadership roles.

The association extends a very special thank you to Chairman Sandifer for his constant and dili-gent work on this legislation and on other issues that improve the state’s business climate.

HVAC Consumer Protection Act Draws Key Support

Scenes from the Legislative Breakfast


Fresh back from the Convention and you can still feel the excitement in the air. I’m glad I delayed writing this until afterward, because now I feel more passionate than ever about our organization!

In accepting the position of membership chairman for the association, I began to think about “why I never joined” as a contractor. The answer is simple...nobody from the association ever asked me. Sure, my various TM’s from the different vendors mentioned it to me from time to time, but it was lacking enthusiasm, no passion and certainly no conviction. In a nutshell, I would be joining just to join.

Boy was I wrong and wow what a mistake that was! I wonder if my reaction would have been different had Mickey Lawler, Randy Pardee, Benny Waldrop, Van Edwards, Verlon Wulf, or Scott Kelly had called me? Instead of being given a dull sales pitch, what if I had been invited to join the ELITE by one of the ELITE? How could I have said “no?”

The focus of this year’s membership drive will be simple. We will not sell memberships! Membership is not a product of a financial transaction. There is a cost; however, membership is a privilege and an honor. This year, we will ask our contractors to identify those worthy and then personally invite them to join the ELITE. We will ask our local competitors to “help us fight the good fight.” Although we compete, united we stand in an effort to promote and protect our industry.

So, think about your market, think about who you know who is a worthy competitor. Who is the new “young gun” in your area? Think about the impact you will make when the rookie hears you are on the phone wanting to talk. If you invite them and bring them, they will join. They will not just join to join; they will join because you invited them to become one of the ELITE.

To each of you 162 contractor members, I ask you this...Will you step up? Will you ensure the associa-tion grows stronger? Will you put forth the effort to invite and bring....just one?

Bret Ross Membership ChairWaterFurnace, International

Help us Fight the Good Fight

Dear Members,

SCAHACC would like to take a moment and introduce our newest partner—American Profit Recovery. We would like to take the opportunity to show you how they can help improve your bottom line, save you time chasing down late-paying customers and retain those customers in the process.

We are confident they are the leading experts in helping businesses in our industry with their late and slow-pay-ing customers. With thousands of satisfied clients across the country, APR has improved cash flow and helped to preserve their relationships with customers by using a diplomatic approach to collections.

American Profit Recovery Offers; • Low-cost, flat-fee collection services no more than $18 per account

• Online access to your accounts 24/7 with APRweb

• Diplomatic solution to getting your bills paid and keeping your customer

• Team of experts knowledgeable about your industry

We encourage you to log on to their website at www.americanprofit.net to find out why the South Carolina As-sociation of Heating and Air Conditioning Contractors as well as many other organizations recommend APR. They have helped countless businesses in our industry stay on top of cash flow, and we believe they can help you too.

Call them today and get your cash flow back on track: 1-800-711-0023 ask for our new member Mitchell Knell.

SCAHACC’sNewest Program

NEW MEMBERS in 2011: Eddie Evans, Evans Heating and Cooling

Mike Geddings, Panther Heating and CoolingTracy Davis, TECH Services Heating &

Cooling LLCTracey Robert, Global Test Supply

JR Deemer, Air Doctor ServicesTony Thrasher, Thrasher Heating and Air

Kevin Cross, Cross Mechanical


Highlights and Important 2011 Federal Payroll Tax Changes

1. Withholding TaxNew Federal withholding tables have been issued. An annual federal withholding allowance is now valued at $3,700 (previously, $3,650).

The Social Security withholding tax rate on wages earned by employees has been temporarily lowered from 6.2% to 4.2% for one year, effective with wages earned beginning Jan. 1, 2011. The IRS is advising employers to implement the 4.2% employee social Security rate as soon as possible, but no later than Jan. 31, 2011. The maximum benefit that a worker will receive from the tax rate reduction is $2,136 (i.e., $106,800 social Security wage base x 2%). Employers will continue to pay Social Security taxes at a 6.2% rate.

Employers must make all federal tax deposits (FTDs) by electronic funds transfer (EFT), effective Jan. 1, 2011. FTDs can no longer be made on paper tax deposit coupons (Forms 8109 and 8109-B).

Employees may no longer receive the “Making Work Pay” credit in 2011. This refundable income tax credit was available to individuals below certain income tax level on their 2009 and 2010 persona income tax returns. Employees received the credit incrementally through a reduction in the amount withheld from their paychecks.

Employees may no longer choose to get part of the earned income credit (EIC) in advance with their paycheck (known as the “advance earned income credit”). The IRS is advising employees with income tax withholding in 2011 who expect to be eligible for the EIC to consider reducing their withholding in order to receive a portion of the credit throughout the year.

2. Fringe BenefitsEffective Jan. 1, 2011, the standard mileage rate for computing the deductible cost of operating a car (including vans, pickups, or panel trucks) for business use is 51 cents per mile (previously, 50 centers per mile).

An employee may exclude up to $230 a month for qualified parking expenses in 2011, and up to $230 a month for the combined value of transit passes and transportation in a commuter highway vehicle.

The maximum amount that can be excluded from an employee’s gross income in connection with the adoption by the employee of a child (whether or not he or she has special needs) is limited to $13,360 in 2011.

3. Pension Plan LimitationsThe maximum amount that an employee may elect to defer to an IRC 401(k) cash or deferred compensation plan continues to be $16,500 in the 2011 tax year. The maximum amount that an employee/participant may elect to defer to a savings incentive match plan for employees (SIMPLE plan) is still $11,500. The limitation on total annual contributions to defined contribution plans is $49,000 (unchanged from 2010). The annual benefit limit for defined benefit plans remains at $195,000. The limitation on deferrals for IRC 457 deferred compensation plans of state and local governments and tax-exempt organizations remains at $110,000 (unchanged from 2010).

The maximum aggregate annual contribution that can be made to a health savings account remains at $3,050 for self-only coverage and $6,150 for family coverage in 2011.

The employee compensation amount used in the definition of “control employee” for purposes of the auto commuting valuation rule continues to be $195,000 in 2011. The compensation amount used in the definition of company officers who are ineligible for the commuting valuation rule is still $95,000 in 2011.

4. Federal Minimum Wage RateThe federal minimum wage rate is still $7.25 per hour in 2011.

5. SC Employment Security Commission is now SC Department for Employment WorkforceStarting in 2011, employers will pay taxes on the first $10,000 of payroll for each employee (previous wage base was $7,000.00). Beginning with the quarter ending 03/31/2011, SCDEW reports must be filed 15 days after the quarter ends instead of being due by the last day of the month following quarter end. They also will go paperless in 2011. We will be working with the software company as well as the SCDEW to meet the new due date and electronic reporting and payments.

Don’t forget when you have questions about issues like these, your SCAHACC membership provides you with free access to the professionals at Sloan, Montgomery, Gregory and Hall. Contact them at 803-782-9246.


Activtek EnvironmentalAT&T MobilityBaker DistributingBRS Sales and Marketing GroupCall ExpertsCarrier Enterprise, LLCCC Dickson Co.Climatic Comfort ProdcutsCoastal Geo Exchange, LLCCoca Cola Bottling Co ConsolidatedColonial Life InsuranceComfort Institute, Inc.Ductz of Greater ColumbiaEast Coast Metal DistributorsEmbroid MeEnergy Reduction ProductsEnergy SolutionsEpting DistributorsFarrell ChevroletFederated InsuranceGateway Supply Company, Inc.Geiger CarolinasGeneral Wholesale DistributorsGlobal Test SupplyGPS Management Solutions, Inc.Grand Strand NissanGray Flex Systems, Inc./Snap-Rite Manufacturing, Inc.H-VAC SupplyHart & Cooley, Inc.HVAC Warranty LLCJohnstone Supply of Columbia, Charleston & SummervilleJohnstone Supply of the UpstateKnauf InsulationLennox IndustriesLukjan Metal ProductsM&A Supply CompanyMidSouth MarketingNB HandyNu-CalgonPaul Calvo School Corp - Exam PrepProfit Strategies, Inc.Progress EnergyRapid RecoveryRhodes and StaffordSantee CooperSCE&GSouth Carolina Living MagazineSouthwark Metal ManufacturingSpace-Ray Infrared Gas HeatersSuburban PropaneThermaflexTrane CommercialUltra-Aire DehumidifiersUpchurch & JowersWarm Thoughts CommunicationsWaterFurnace International, Inc.Yandle-Witherspoon SupplyZONEFIRST2011

CONV

ENTI

ON V

ENDO

RS 2011 Annual Convention PicturesSave the Date: 2012 Annual Convention and Trade Show - January 19-21 • Marriott Grand Dunes • Myrlte Beach, SC


2011 Annual Convention PicturesSave the Date: 2012 Annual Convention and Trade Show - January 19-21 • Marriott Grand Dunes • Myrlte Beach, SC

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Member Spotlight:Tommy Sinn, TSCWhen and how did you get started in the HVAC industry?

I “grew up” in the HVAC business, started by working weekends and summers for my uncle and my dad in the late 80’s and early 90’s when I was in high school and college. When I got out of college, I spent 8 years working other jobs and other industries, before I asked my uncle if I could come back and work for him. He was gracious enough to bring me in and allow me to learn my job as I go, because I had no clue.

What are the challenges you currently face in your business?I think the biggest challenge any business faces anytime, not just right now, is finding the right people that are qualified to do the job we want done, fit into and buy into our company culture, and are willing to serve the customer in a way that protects both the customer and the company.

How did you become involved in SCAHACC?Our company has been involved with SCAHACC since it was the Heat Pump Association. I became involved by attending the annual meetings, fund raising events such as the golf outings, and the legislative breakfast. I became a chapter rep after Scott Kelly called me and asked me to consider running for Greenville Chapter Rep. I felt honored told Scott I would call me and ask, but I didn’t think anyone would vote for me. I found out later I was the only one in the running!

What is your advice to fellow SCAHACC members about working through the current economy?Keep Digging! What else are we going to do, quit? They don’t need my advice, but if asked I will tell them what we are doing. We are working harder to control our costs, continue to give the customer more value for less money, and provide solutions for their problems that other contractors do not provide.

Why is SCAHACC membership important to you?SCAHACC membership provides us with access to training for technicians and management team members. SCAHACC membership provides us an opportunity to join forces with other contractors who are concerned about our industry and active in trying to shape the rules regulations and what our industry will look like in the future. SCAHACC also provides an outlet for us to interact and exchange ideas with other contractors who are not in the same geographic region we are or in direct competition with us. It’s fun to have friends in our industry.

What would you say to a member who may be considering attending the SCAHACC Convention and Trade Show?You owe it to yourself to check it out. I have seen a lot of different trade shows through affinity groups and other national organization. The education sessions, meetings, entertainment, and especially the trade show are all top notch. You never know where you might pick up an idea that will help you.

Midlands Area Contractors & Industry Allies Start a Breakfast ClubContractors and industry allies in the Midlands have started their own breakfast club . . . a monthly opportu-nity to meet face-to-face. The second Tuesday of every month, those in the HVAC industry who are interested are invited to meet at the Lizard’s Thicket on Elmwood Avenue in Columbia at 7 am for breakfast. Everyone pays for his/her own breakfast.

The following are the dates for the next two months: Tuesday, April 12 Tuesday, May 10

RSVPs are NOT required! Just show up and enjoy some exchange with others in the industry. Thanks to Mickey, Randy and Dennis for coming up with this suggestion!

2011 Schedule of EventsMarch 31 TXV Training Spartanburg

April 14 Horry/Gtown Chapter Meeting

May Gordon Smith Memorial Bass Tournament16 Greenville Chapter Meeting Anderson Training18 Board Meeting Columbia

August Golf Tournament

September Greenville Training CSRA Training Beaufort Hilton Head Chapter Mtg29 Board Meeting/Pre-Planning Meeting

October Charleston Training Anderson Chapter Meeting Horry/Georgetown Training

November 17-18 Advance Planning Retreat/BOD Meeting Wampee Midlands Training Pee Dee Chapter Meeting

December Spartanburg Chapter Meeting

The Greenville and Upstate Chapter areas will host their first meeting of the year on Monday, May 16.

The meeting will be at Wild Wings in Greenville. Reminders will be mailed.

The CSRA Chapter started off the year with a meeting on Jan. 20 that hosted Senator Greg Ryberg, the chairman of the Sen-ate LCI Committee -- a very powerful legislator, as the guest speaker. The Chairman updated the members on the “state of-the-state” and then took questions. SCAHACC members were articulate and respectful of the Senator’s knowledge and time.

Those in attendance also took the time to share their thoughts with the Chairman on SCAHACC’s Consumer Protection Act. Senator Ryberg listened and asked questions in return. He thanked the members for the information and commented that he felt that the association “had done it’s homework.” While he did not promise his support on the bill, he encouraged members to talk with their legislators and share the same information.

CSRA Chapter

Charleston Area ChapterThe Charleston Chapter took advantage of location (met at SCE&G’s Sand Dunes Club on Sullivan’s Island -- beach front!) and the season and met on Wednesday, Feb. 23 for an oyster roast, association update and information exchange. With more than 70 in attendance, the meetingwas deemed a success.

Midlands Area Chapter The Midlands Chapter held its first meeting on March 10th at SCE&G’s Pine Island Club. A fish fry dinner was served up as well as a few “fish-y tales” from the membership. The meeting provided an informational exchange as well as a fun opportunity to tell a few tales. SCE&G provided an update on their newest program. Randy Pardee, Legislative Chairman, also updated the members on H.3473, as it was heard in full committee earlier in the day.

The Midlands Chapter also is trying to start a breakfast club -- see article on the next page.

Greenville & Upstate Chapter Horry/Georgetown ChapterThe Horry/G’town Chapter will host its first meeting of the year on Thursday, April 14.

An oyster roast is planned.

Stay tuned for the de-tails.

COMING SOON


Horry/Georgetown ChapterCOMING SOON

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HVACSOME

GOOD NEWS

Since Parker Hannifin builds about 90% of the TXV’s for the U.S. Market, SCAHACC is proud to announce that Steve Maxson, Parker Hannifin’s Corporate Trainer, will be the instructor for this NATE certified training program. The program will cover: • a review of basic refrigeration principals • system dynamics • the theory of operation • application • installation and troubleshooting

When: 1 - 4 pm

Where: Piedmont Natural Gas 501 W. Blackstock Rd, Spartanburg, SCMember Rates: Gold Level $35 per person Silver Level $50 per person

To Register -- call us toll free at 1-800-395-9276 fax to 803-252-7799

Spartanburg TXV Training -- March 31st

Please register me/us

Name: _________________________________________

Name: ________________________________________

Company: ______________________________________

Phone: __________________________

_____ Check _____ CCCard # _________________________________

Exp. Date:________

Name on the card:_______________________________

Full billing address:_______________________________

______________________________________________

Service Techs & Installers Invited

On January 31, Leigh Faircloth, Randy Pardee, Todd Wagstaff and Bill Rathbun met with Congressman Joe Wilson. The meeting had been requested earlier as a result of concerns regarding the many questions around the proposed HomeStar legislation. The group stated its concerns and suggested that a contractor should not be required to fund any part of a consumer rebate. It was the group’s opinion that contractor funding of the rebate would have significant adverse effect to the contractor’s cash flow and his ability to grow his business and create new jobs. The group also discussed energy conservation as not only a financial necessity for many home owners but also the right thing to do for our economy and our environment.

The group reinforced the need for licensed contractors. They pointed out that improperly installed heating or cooling systems or improper duct installation removes much of the efficiency designed into a system by the manufacturer or directed by the Department of Energy. It was also shared that improper installation results in unnecessary high energy use, possible dangers to the homeowner and her family and an uncomfortable and cost-burdened consumer.

Before leaving, the group shared that through contractor and technician training, promoting proper contractor licensing, through its proposed HVAC Consumer Protection Act, H.3473, SCAHACC continues to work hard to provide the best possible professional solutions to the homeowner’s needs.

It is our hope that the Congressman will look to SCAHACC for input and feedback as future legislation is proposed.

Spring 2011

SCAHACCPOBox11035Columbia,SC292111-800-395-WARM

2011 Gold Level Distributor Members “Thank you” to our gold level distributors for 2011: Johnstone Supply of the Upstate, Climatic Comfort Products, General Wholesale Distributors, Global Test Supply, and Thermaflex.

We always have more room for more gold level members, so if you are interested in going gold, call SCAHACC Headquarters and a member of the staff will discuss the benefits associated with the gold level.

Documents

SCAHACC Spring Newsletter