Tax and Finance Management

Learn About Applying for Economic Development Incentives, Jan. 12

At 10 a.m. on Jan. 12, the OMA will host a webinar addressing the complexity of economic development incentives. Titled “10 Mistakes to Avoid in Pursuing Economic Development Incentives,” this virtual event is designed specifically for manufacturers and will be presented by OMA Connections Partner Vorys. Learn more and register. 12/21/2021

On-Demand Webinars for Year-End Tax Planning

OMA Connections Partner Plante Moran has posted on-demand webinars of interest. Webinars include year-end business tax planning, as well as an accounting and audit update. Access the webinar series. 12/21/2021

Analysis: Build Back Better Budget Deficits Could Mean More Inflation, Policy Uncertainty

The U.S. Senate continues to consider the so-called “Build Back Better Act” (BBBA), which would significantly expand federal social and climate programs. As reported earlier, the National Association of Manufacturers has announced its opposition to the BBBA’s tax hikes.

The non-partisan Congressional Budget Office (CBO) and Tax Foundation have both estimated the BBBA would increase the cumulative budget deficit over the next 10 years — contrary to claims the legislation is “fully paid for.” This could lead to worse inflation and policy uncertainty, according to the Foundation’s analysis. 12/15/2021

Year-End Tax Planning Update

According to OMA Connections Partner HBK CPAs & Consultants, the $2 trillion Build Back Better Act, if passed and signed into federal law, could bring an additional layer of complexity to year-end tax planning for businesses. The firm has published this year-end tax planning update to help businesses navigate this uncertainty. 12/15/2021

Important Upcoming Deadline for Deferred Payroll Tax

The federal Coronavirus Aid, Relief, and Economic Security (CARES) Act allowed for the deferral of the employer portion of the Social Security tax incurred between March 27-Dec. 31, 2020. OMA Connections Partner RSM has published this update to remind employers that participated in this program they must pay 50% of their deferred payroll tax liability by Jan. 3, 2022, and the remainder by Jan. 3, 2023. 12/14/2021

New Accounting Rules for Disclosing Government Incentives

Because of the lack of specific guidance in generally accepted accounting principles (GAAP), OMA Connections Partner Vorys has published this guidance on new rules for disclosing government incentives, effective for fiscal periods after Dec. 15, 2021. 12/15/2021

Ohio Court Ruling May Expand Insurance Coverage for Cyberattacks

A recent Ohio court decision potentially opened the door for broader coverage from cyberattacks under traditional insurance policies.

OMA Connections Partner Frantz Ward writes that in Emoi Servs., LLC v. Owners Ins. Co., 2021-Ohio-3942, an Ohio-based company sued its insurance company after the insurer denied coverage for the losses the company incurred following a 2019 ransomware attack. In a split decision, Ohio’s Second Appellate District Court said the company’s temporary loss of access to its system could constitute covered property damage under the policy.

The firm notes that while it’s encouraging there may be alternative coverage available under traditional insurance policies for a cyberattack, it remains in your company’s best interest to implement an appropriate cybersecurity program, which includes specific cyber-insurance coverage. 12/16/2021

Ohio Tax Receipts Reflect Strong November Sales

In November, Ohio tax receipts totaled just under $2.2 billion, exceeding the state forecast by $75.8 million (3.4%), according to preliminary revenue figures from the Office of Budget and Management. For the fiscal year so far, state tax revenues are $336.7 million, 3.2% higher than projections. 12/8/2021

Manufacturers Ramp Up Opposition to $2T Social Spending Bill

As the national debt nears $28.5 trillion, lawmakers in D.C. continue to debate the $2 trillion climate and social welfare spending package. This week, U.S. Sen. Joe Manchin (D-W. Va.), a key swing vote, warned the spending plan (“Build Back Better Act”) could exacerbate inflation.

The National Association of Manufacturers (NAM) opposes the massive spending plan, saying the taxes it would impose would hit manufacturing harder than other industries. This week, NAM staff told The Hill that a tax “specifically targeting our industry makes absolutely no sense and jeopardizes Americans’ economic future.”

Manufacturers and their allies are encouraged to contact their U.S. senators in opposition to the spending package’s tax hikes. 12/8/2021

How Manufacturers Can Save Taxes on International Sales

If your manufacturing company has at least $1 million of sales outside of the U.S., you may want to consider creating a new entity to save tax dollars on your international sales, according to OMA Connections Partner CliftonLarsonAllen. Watch this video to learn more about the firm’s recommended tax strategy. 12/1/2021