1. M A N A G E M E N T
p r a c t i c e management
Recruiting the Disabled: Hidden Assets
By Joanie Sompayruc. John Fulmer,
and Richard A. Turpin
A
ccording to the LJ.S. Census, almost
50 million Americans over the age
of 5 have at least one disability—that
is nearly one out of every five
Americans. Over 33 million of those are
working-age men or women. Furthennore,
an estimated 35 million people ai-e consid-
ered severely disabled, and of those between
the ages of 21 and 64, about 46% remain
employed, according to author Timothy
Moore (ezinearticles.com/7How-Many-
Disabled-Americans-Are-There?&id
= 1918829). Recent decades have seen sig-
nificant legislation to ensuis that those work-
ers have acces.s—access to public build-
ings, access to employment, and access to
justice. One of the most important pieces of
legislation that has attempted to enable
such access is the Americans with
Disabilities Act (ADA) of 1990.
In the yeais following enactment of the
ADA, the literature was rife witli doom imd
gloom over how costly this law was
going to be for businesses in general.
Articles geared to employers in the
accounting profession warned firms that
compliance with the ADA could be com-
plicated and expensive, advised them to tually all curbs at intersections allow for ance). Moreover, the necessary accom-
review job descriptions and personnel poli- wheelchair users, many elevators have modations were often quite easy: raising
cies, and suggested ways to improve Braille number buttons and audio cues, and or lowering a desk, installing a ramp,
facilities to avoid lawsuits for noncompli- office design companies offer plans that allowing orthopedic shoes in modification
ance with the ADA. These articles show accommodate a wide range of disabilities. of the company dress cixle, allowing a flex-
that accounting firms were wringing their Studies show that employer eftbrts to com- ible schedule, increasing volume on a tele-
hands over the impending flood of litiga- ply with the ADA have generally been phone receiver, installing a large-screen
tion that was going to follow if they did simple and inexpensive in most cases. A computer monitor, or using an ergonomie
not get their houses in order. study funded by the U.S. Department of chair with extra padding.
Labor and undertaken by the Job There are several reasons why compa-
The ADA Reality Accommodation Network found that in the nies, especially accounting firms, .should
Twenty-one years after President George 1990s, the typical cost of an accommoda- make efforts to recruit and retain capable
H.W. Bush signed the ADA into law. this tion for a qualifying disability under the workers with qualifying disabilities and
legislation appears to have changed how ADA was less than $500 ("What Is the make reasonable accommodations for
society accommodates individuals with dis- Real Cost of ADA Compliance," by Dan them. This aiticle discus.ses those reasons.
abilities. Public buildings regularly have Woog, hrpeople.monster.com/news/articles/ Among the many benefits of hiring the dis-
wheelchair ramps and parking spaces, vir- 1073-what-is-the-real-cost-of-ada-compli- abled are tax incentives, increasing diver-
58 APRIL 2011 / THE CPA JOURNAL

2. sity and access to talent, benefitting from Another tax incentive that some busi- of the tax credit claimed. For more infor-
the experience of seasoned accountants nesses may u.se is a tax deduction. IRC sec- mation on these tax incentives, go to
who may have become disabled over time, tion 190, Expenditures to Remove www.irs.gov and view Form 8826,
attracting clients, and recognizing the man- Architectural and Transportation Barriers Disabled Access Credit, and the related
dates of the recently updated ADA laws. to the Handicapped and Elderly, allows a instructions for the disabled access credit.
In addition to discussing the benefits to deduction of up to $15,000 per year from In addition, it is helpful to review 1RS
Firms, this article discusses the role of net income for qualified architectural and Publication 334, Tax Guide for Small
accounting professors in working with stu- transportation barrier removal expenses. Business, and 1RS Publication 535,
dents with disabilities. These expanses cannot be chargeable to Business Expenses.
capital account. Employers can now earn up to $2,4(XJ
Tax Incentives Small businesses can combine the tax per year for each qualifying hire under
The Tax Code offers tax incentives to incentives under IRC sections 44 and the Work Opportunity Tax Credit, which
some businesses that make expenditures 190. For example, if a firni spends $20,000 includes certain disabled employees
specifically to accommodate disabled in qualifying expendiaires for removal of (www.esd.wa.gov/hireanemployee/re.sour
employees or patrons. One incentive cre- an architectural banier and modification of ces/taxcredits/index.php). This same pro-
ated in 1990 is a tax credit available office design to accommodate an employ- gram allows employers to earn up to
under IRC section 44. Expenditures to ee covered by the ADA, the business $4,8(X) for each qualifying disabled vet-
Provide Access to Disabled Individuals. would be able to take the $5,000 tax eran hired (www.doleta.gov/business/
This credit was designed to help small busi- credit as well as the $15,000 tax deduction. incentives/opptax/PDF/WOTC_Fact_
nesses cover ADA-related access expendi- The reason is that the deduction is equal Sheet.pdf). There is no limit on the
tures. A business can take advantage of tliis to the difference between the total number of new hires who can qualify for
credit if its revenues in the previous tax amount of the expenditures and the amount this tax credit.
year were equal to or less than $1 million
or if it had fewer than 30 employees.
Eligible expenditures include—
• provision of qualified readers, taped
SUCCESS STORY 1
texts, and other effective methods of
making visually delivered materials avail- "Many potential employers failed to see his abilities because they were unable
able to individuals with visual impaimients; to see past his disabilities."
S
• provision of qualified interpreters or am is a financial analyst with a large regional accounting firm based in
other effective methods of making aurally Tennessee. Looking at his credentials, one might tbink that Sam would
delivered materials available to individuals have no trouble getting a job at a firm like the one where he works. He
with hearing impairments; graduated magna cum laude from a prestigious private university with a bache-
• purchase of adaptive equipment; lor's degree in accounting and is a CPA as well as an Accredited Business
• production of accessible formats of Valuation professional. Sam, however, has a form of autism known as Asperger's
printed materials (i.e.. Braille, large print, syndrome, and does not relate to the world as most people do. Nevertheless,
audio tape, computer discs); Sam has not only managed to carve out a career for himself in the corporate
• removal of architectural barriers in finance division of tbis large firm (where be has worked for the past 13 years),
facilities or vehicles (alterations must com- but be has also helped the firm generate substantial revenues.
ply with applicable accessibility standards);
His boss and mentor, Greg, stresses that Sam is on the payroll because his
and
unique skills and abilities have enabled the firm to secure clients through his cut-
• fees for consulting services (under cer- ting-edge business valuation approaches. Greg notes that wbile at times Sam's
tain circum.stances). disability can require "some management," Sam bas enabled the firm to find a
This tax credit can only be used to mod- treasure in someone that many other firms, frankly, overlooked. Greg says that
ify existing facilities for compliance with "many potential employers failed to see Sam's abilities because they were
ADA; it cannot be used to finance new unable to see past bis disabilities." After all, some of Sam's health issues make it
construction. The amount of the tax cred- impossible for Sam to drive a car. Also, Greg has bad to help Sam develop cer-
it is equal to 50% of the eligible access tain business etiquette skills. Greg admits tbat "managing" Sam requires more
expenditures in a year, up to maximum attention than it would if Sam were like other employees; however, as Greg sees
expenditures of $10,250. There is no it, Sam is no charity case because be clearly helps the firm's bottom line.
credit for the first $250 of expenditures.
Therefore, the maximum credit available Sam recently won the Southeast Tennessee Placement Consortium's Disabled
is $5,0(X) ([$10,250 - $250 fioor] x 50% Employee of the Year Award. At that time, he said, "I hope this helps people
= $5,(X)0). Furthermore, the expenditure understand it is okay to hire disabled people in the workplace. Just because you
that created the credit cannot be used to are classified as disabled does not mean you don't have value."
increase the basis in the property.
APRIL 2011 / THE CPA JOURNAL 59

3. Recruiting for the Accounting Second, the accounting profession race, national origin, age) when they see a
Profession should avoid excluding any of the best can- disabled individual make a presentation at
Hiring individuals with disabilities can didates, and not hiring disabled individuals a Beta Alpha Psi meeting. The idea that
provide several benefits for accounting may be doing just that. Remembering that might (3ccur to many students is, "Gee, that
firms and the accounting profession. First, almost one out of every five Americans individual is successful in the accounting
in many areas of the United States, has some type of di.sability, some of the profession: there must be a role in account-
accounting finns still l(X)k very homoge- brightest minds may be in bodies that have ing for me, too" or "Wow, that individual
neous. Providing reasonable accomm(xia- disabilities. can be successful in the accounting pro-
tions that enable recmiting and retaining Third, individuals with disabilities can fession; so can 1."
talented workers with qualifying disabili- serve as models for others and assist in
ties not only can help a finn secure a capa- attracting individuals to the accounting pro- Recognizing the Value of Experience
ble workforce, but also can send a positive fession. Imagine the impact on students, Statistics show that the likelihood of
message to potential employees about a those with and those without a disability, having a disability increases with age.
firm" s culture. as well as those from a protected class (e.g.. Arguably, some of the accounting profes-
sion's most experienced andreliableemploy-
ees will iilso be older workers. Having sea-
soned accounting veterans with disabilities
SUCCESS STORY 2 on limi stalls will help develop younger staff
members, while providing tliem with valu-
"I want to be productive and give back." able life lessons and good examples. Some
firms have even concentrated on recruiting
J
onathan made quite an impression on his first day of class in intermediate
older accountant.s becuuse tliey rccogni/x; the
accounting. It is not every day that a professor gets a student with no
immeasurable worth of their experience
arms in class. Jonathan was in an accident several years ago that result-
and loyalty.
ed in the loss of his arms. He had the option of using the financial settlement
from the accident to avoid pursuing another career, but he says, "I did not want Many of the.se sea.soned accountants—
to sit around and do nothing for the rest of my life. I have been fortunate to thanks to advances in technology—can now
receive kindness from many people, and I want to be productive in some way work from home. Finns are now recogniz-
and give back." ing that having disabled employees with
extensive experience work from home
Jonathan has chosen to pursue a degree in accounting. As with most students enables them to benefit from the depth iuid
in accounting, Jonathan recognized the importance of gaining experience work- breadth of knowledge of these workers,
ing for an accounting firm, so he sought employment with the accountant who while .saving money on work space and pR)-
has worked with his family for many years, Jack. Jack says that Jonathan began viding convenience and flexibility to the
working for him in June 2006 and he has had to make no special accommodation workers.
for him. Jonathan brings his own keyboard and his own mouse. Jack asserts that
Jonathan is extremely independent and will go to extraordinary lengths to prove
Attracting Clients
that he can perform tasks himseif.
Accounting firms should hire employees
Jack says his intent in hiring Jonathan has been to let him know what working based on their ability to pertbnn the work
in a small accounting firm is really like. His firm is a sole proprietorship that has ;uid be a part of the team: however, some
been operating for 40 years. The personnel in the firm Include Jack, his wife accounting Fimis recruit students who can
(who functions as an office manager), a bookkeeper who has been with the firm al.so bring in nature business. Tho.se fimis that
30 years, a receptionist, and now Jonathan. The firm handles work for individuals have employees with disabilities may have
and small businesses. It does payroll work, general ledger work, and tax compli- a leg up on other linns when bidding for new
ance. Jonathan has enabled Jack's firm to expand its services to include com- clients. It is probable that some potential
puter software installation and programming troubleshooting. clients either have employees with disabili-
When asked if clients ever comment to him about sending an employee with ties or are run by disabled individuals.
no arms to help them. Jack says the most frequent comment he receives is, "We When selecting the finn to provide their
think we like Jonathan even more than we like you!" Jack does admit that he accounting needs, these |X)tential clienLs may
initially had a concern that Jonathan would be at a disadvantage because he look favorably upon an accounting fimi tliat
can only handle papers with his toes. But his strong work ethic, can-do attitude, has invested in recmiting ;uid tiiiiiiing qual-
professionalism with clients, and expertise with computers has eased any con- ified disabled employees.
cerns Jack had. In fact. Jack, who is a member of the Georgia State Board of
Accountancy Exam Committee and the Georgia CPA Licensing Board, says he Changes in the ADA Laws
has every confidence that Jonathan will succeed in the accounting profession. In In addition to the benefits to firms for
fact, when Jack retires in the next three to five years, he hopes that perhaps hiring disabled employees, changes in the
Jonathan wili enabie his firm to carry on without him at the heim. ADA laws have provided an added incen-
tive. The courts have been increasingly
60 APRIL 2011 / THE CPA JOURNAL

4. reluctant to qualify some disabilities interviewing techniques that a skilled audi- disabilities and to make reasonable
under the ADA and, thus, have denied tor must possess; however, tliat professor accommodations for them. Certain expen-
ADA protection to many Americiins who is viewing the profession from the view- ditures made to accommodate disabled
might otherwise qualify for accommoda- point of an auditor, and must realize that employees or patrons qualify for tax cred-
tion under the law. On September 25, 2(X)8, the hearing-impaired person can play a vital its or tax deductions. In addition, moti-
President George W. Bush signed the iind vibrant role in other areas of account- vating the best and brightest to join the
Americans with Disabilities Act ing where aural skills are not as crucial. accounting profession can only enhance
Amendments Act of 2(X)8. According to In addition, accounting pnifessors should its ranks. Finally, employing disabled
the Equal Employment Opportunity be cognizant of advances in technology and individuals may assist in attracting clients.
Commission, this act "emphasizes that communications as they relate to disabled Accounting finns should dearly consid-
die definition of disability should be con- students. For example, a professor might er placing additional emphasis and
strued in favor of broad coverage of indi- think that a student who has limited use effort on the recruitment of those with
viduals to the maximum extent pennitted of his arms cannot work efl'ectively in the disabilities. Ü
by the terms of the ADA and generally accounting profession given the amount of
shall not require extensive analysis" memorandum writing and data entry that
(www .eeoc.gov/laws/statu tes/adaaa_notice. is required in many accounting positions. Joanie Sompayrac, JD, MAcc, CPA, is
cfm). Among the issues this act addresses He must realize, however, that special com- the University of Chattanooga Foundation
are that it— puter keyboards are available that enable a As.Kociate Profes.wr of Accounting and
• expands the definition of what consti- student to enter information without using John Fulmer, PhD, is the First Tennessee
tutes "major life activities" to include more his arms. Professor of Finance, both at the
activities than previous court decisions, University of Tennessee at Chattanooga.
• asserts tliat "mitigating other tlian 'ordi- Importance of Recruitment Richard A. Tiirpin, PhD, CPA, is an asso-
nary eyeglasses or contact lenses' shall not There are many reasons to recruit and ciate professor of accounting at Troy
be considered in assessing whether an indi- retain capable workers with qualifying University, Troy. Ala.
vidual has a disability,"
• notes that an "impairment that is
episodic or in remission is a disability if it
would substantially limit a major life activ-
SUCCESS STORY 3
ity when active," and
• provides that individuals covered only "I want clients to focus on my work, not my inability to hear."
under the "regaided as" prong are not enti-
K
aren was born deaf, and her parents insisted on making sure sbe grew
tled to reasonable accommodation. up fully prepared to function in the bearing world. All of her siblings
were able to hear, so her parents made sure Karen learned to read lips
Role of a University Accounting Program at an early age. Wbile Karen also knows sign language and uses certain aids to
Accounting professors need to be aware assist the bearing impaired, sbe functions amazingly well in the hearing world.
of positions in the accounting profession
When Karen went to college in Ohio, many of her classmates were initially
that students with different disabilities can
unaware that she had a bearing impairment; tbey just "thought I talked funny,"
successfully undertake. It would be help-
she says. As friends and classmates discovered that Karen was deaf, most were
ful for the profession to develop and pub-
impressed at her ability to function so well in tbe collegiate environment. There
licize a list of examples where individuals
were those people, however, who appeared to shout at her and treat ber as
with disabilities are successfully employed
though sbe were handicapped, which Karen admits sbe hated.
as accountants. Professors could then use
these examples to offer encouragement and When Karen discovered her love of accounting, most of her professors
inspiration to disabled students. Many encouraged ber, but there were those who shared their concerns with ber about
accounting success stories are the result bow accounting firms would perceive ber ability to deal witb clients because of
of an accounting professor offering hope ber hearing impairment Wbat Karen has discovered is that clients are actually
to an aspiring accounting student. (See incredibly candid with ber—sometimes witbout meaning to be. For instance, she
the Sidebars for three accounting-related notes that on some jobs, sbe notices client representatives talking among them-
success stories.) selves about wbat to honestly share witb ber and what to keep to themselves,
In carrying out their role as sources of witbout realizing that sbe reads lips. She finds these little moments more amusing
encouragement and inspiration, accounting than anything. Sbe also notes that some of her clients still don't seem to fully
professors should be cognizant of the realize tbat sbe bas a bearing impairment.
total profession, not just their particular spe- Karen has earned a master's degree in accounting and a CPA designation.
cialization. For example, an auditing pro- She has found that ber impairment bas made her somewhat more approachable,
fessor might think that a hearing-impaired and she thinks ber firm is more amenable to biring otber disabled accountants
individual would not be successful in the now tbat it has realized how seldom her impairment affects her work.
accounting profession given the extensive
APRIL2011/THE CPA JOURNAL 61

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