Tax and Finance Management

On-Demand Webinar: Ohio Budget Bill Highlights

OMA Connections Partner GBQ has made available this recorded webinar examining the tax highlights of Ohio’s FY2024-25 budget (House Bill 33), which is currently awaiting action in the Senate.

In addition to detailing House-approved provisions to reduce the personal income tax burden, increase sales tax penalties, and adjust R&D credits, the webinar provides updates on Ohio’s municipal income tax. 5/22/2023

Benefits of Asset-Based Financing

For businesses in need of capital, asset-based financing can be a solution — whether a company is growing or experiencing trouble, according to OMA Connections Partner Fifth Third Bank.

In this insight, Fifth Third notes that even during economic uncertainty, asset-based lending parameters rarely deviate, making it an “especially good solution” for working capital-intensive industries, like manufacturing. 5/24/2023

RSM Publishes Technical Accounting Guides

OMA Connections Partner RSM has prepared in-depth guides on complex and challenging accounting topics. Read these guides for comprehensive information on the applicable U.S. GAAP, as well as examples. 5/24/2023

OMA Backs Unemployment Reform Bill

This week, the OMA testified before the Senate Insurance Committee in support of Senate Bill 116, sponsored by Sen. George Lang (R-West Chester Twp.) and Sen. Mark Romanchuk (R-Mansfield) to reform Ohio’s unemployment compensation system.

The bill aims to protect employers from future payroll tax increases, while ensuring the system’s long-term stability. It would do so by increasing the taxable wage base for employer contributions from $9,000 to $9,500; ending dependency benefits; and tying the maximum number of weeks for unemployment benefits to the state’s jobless rate — currently at a historic low. Read the bill summary.

The OMA was represented by Bill Creedon from Bricker Graydon LLC, the OMA’s general counsel. Watch and read Creedon’s testimony. 5/18/2023

Senate Committee Takes Up Income Tax Relief

Ohio’s biennial budget (House Bill 33) is currently before by the Senate Finance Committee. The committee’s chair, Sen. Matt Dolan (R-Chagrin Falls), said this week that tax relief will be part of the Senate’s budget plan.

When it approved its version of the budget last month, the House included a provision to provide income tax relief for earnings between $26,050 and $92,150. Senate President Matt Huffman (R-Lima) has said he wants a larger tax cut than the House provided. 5/17/2023

Tax Roundup: Ohio Gets Low Mark for Sales Taxes

• The Tax Foundation ranks Ohio among the worst 15 states for sales tax burden and complexity. (See the sales tax rates in all 88 counties.)
• Bricker Graydon LLC, the OMA’s general counsel, has published this “cheat sheet” on the Inflation Reduction Act’s manufacturing product credit, which supports development of renewable energy technology and energy storage.
• OMA Connections Partner Clark Schaefer Hackett has published this infographic to help businesses decide whether to outsource their sales tax compliance, as well as this sales tax compliance guide for businesses selling in multiple states.
• Employers can use their educational assistance programs to help pay employee student loans, according to the IRS’ small-business guidance.
• OMA Connections Partner Plante Moran has posted this on-demand webinar regarding tax and accounting issues related to hiring outside the U.S.

Members should note that the next OMA Tax and Finance Committee meeting is June 15. Register here. 5/18/2023

Ohio’s April Tax Revenue Comes in Below Forecast

Ohio’s April tax receipts were below forecasts for the first time in several years. See the monthly financial report from the Office of Budget and Management.

As Gongwer News Service reports, last month’s receipts were still the second-highest April total on record, reflecting solid footing as the biennial budget plan (House Bill 33) moves closer to the finish line. 5/9/2023

U.S. Debt Nears $32 Trillion as Ceiling Talks Begin

As the federal debt nears $32 trillion, leaders in D.C. are discussing sticking points in negotiations to raise the nation’s debt ceiling.

U.S. Treasury Secretary Janet Yellen has said action must be taken by June 1 to avoid default. JPMorgan Chase CEO Jamie Dimon has warned that panic will overtake markets as a default becomes more likely.

This infographic shows the growth in federal debt since the Great Recession. (It was $10.6 trillion just 15 years ago.) The non-partisan Committee for a Responsible Federal Budget has published this graph showing more than $14 trillion in COVID-related spending, loans, grants, subsidies, and tax cuts since 2020. 5/9/2023

Economic Barometer: May 2023

• The producer price index, which measures prices for final demand goods and services, increased 2.3% from April 2022 to April 2023 — the lowest level of growth since January 2021.
• Core consumer inflation remains stubbornly high, due largely to shelter prices, according to the latest Consumer Price Index report.
• This infographic shows how quickly the federal funds rate has been raised during the past year.
• U.S. job openings fell in March to their lowest since April 2021, while layoffs rose to 1.8 million, their highest level since December 2020.
• CEOs remain largely pessimistic about what’s ahead for the economy, according to the latest Conference Board data.
• Experts with OMA Connections Partner RSM say the dispute over the federal debt ceiling is eroding consumer and corporate confidence, as evidenced by the increased demand for short-dated securities.

There’s still time to register for RSM’s May 16 economic outlook webcast. Register here. 5/11/2023

Ohio Gets Poor Grade for Individual Income Tax

As Ohio lawmakers consider proposed income tax relief, the Tax Foundation has updated its 50-state index for individual income tax structure. Ohio is ranked in the index’s bottom 10 states, coming in at No. 41.

The individual income tax is important to businesses since pass-through entities are taxed in this manner. States scoring well in the Foundation’s index typically have a flat, low-rate income tax with few deductions and exemptions. 5/3/2023