News and Analysis
In its latest monthly report, the Ohio Office of Budget and Management says the state’s non-auto sales and use tax collections in October were roughly $43 million (5.7%) above estimates, while personal income tax receipts were more than $20 million (2.8%) below estimates. For the fiscal year to date, state tax revenues were $97 million (1.3%) above projections. 11/18/2019
Every year, the IRS adjusts more than 40 federal tax provisions for inflation — from income tax brackets, to qualified business income deduction thresholds, to capital gains brackets. The Tax Foundation has published this handy guide to 2020’s tax brackets. 11/17/2019
Before 2019 draws to a close, OMA Connections Partner GBQ Partners LLC invites you to join their tax specialists for an interactive conversation as they reflect on the current year, explore tax case studies, and highlight key tax topics and trends for 2020. The event will be held in Columbus on Dec. 4 and in Cincinnati on Dec. 5. Read more at GBQ’s Manufacturing Minute publication. 11/19/2019
On Nov. 15, 2019, the Financial Accounting Standards Board (FASB) issued two Accounting Standards Updates to defer the effective dates for certain guidance in its Accounting Standards Codification for specific entities. OMA Connections Partner RSM has compiled this summary of the effective dates that have and have not been revised by the FASB. 11/18/2019
Manufacturers face significant accounting developments with the complete overhaul of revenue recognition guidance by the Financial Accounting Standards Board and the International Accounting Standards Board. OMA Connections Partner Clark Schaefer Hackett has developed this publication to help shed light. 11/18/2019
A new report by Providence, R.I.-based Citizen’s Bank finds that Ohio businesses are likely to experience growth throughout the remainder of 2019 and into early next year. Nationally, the bank’s Citizens Business Conditions Index — which includes manufacturing data — sits at a healthy 60.2, while the Ohio Business Index came in at 62.3 for Q3. A rating above 50 indicates economic growth.
Meanwhile, newly released federal data show Ohio’s real GDP trailed the national average in Q2. 11/11/2019
When fraud strikes manufacturers, the effects can be devastating. A recent report shows the median fraud loss in the manufacturing sector was $240,000 — nearly double the median fraud loss for all industries ($130,000). Internal controls are a company’s first line of defense in preventing and detecting fraudulent activity.
OMA Connections Partner MCM CPAs & Advisors has assembled this list of questions to help you evaluate whether your control system is strong enough to protect against theft or misstatement. 11/13/2019
This week, the OMA Tax Committee held its third and final scheduled meeting of 2019. The meeting was led by its new chair, Meredith Mullett, manager-tax compliance for the J.M. Smucker Co. The committee examined the state’s key financial indicators, as well as recent legislative activity impacting manufacturers.
Phil Hurak of OMA’s Connections Partner Clark Schaefer Hackett provided a detailed presentation analyzing recent state and local tax developments. The keynote speaker was State Rep. Sara Carruthers (R-Hamilton), a member of the House Finance Committee, who discussed efforts to make Ohio manufacturers even more competitive. Other highlights included a report from OMA Tax Counsel Justin Cook of Bricker & Eckler LLP. 11/6/2019
Failure to withhold the right amount of taxes from employee paychecks — and submit those taxes to the federal government on time — can lead to being hit with the Trust Fund Recovery Penalty, also known as the 100% penalty. The penalty applies to both Social Security and income tax withholdings. OMA Connections Partner Clark Schaefer Hackett has analyzed the consequences and provided tips to ensure compliance. 11/6/2019
In July, state lawmakers inserted a last-minute amendment into the state budget bill, thereby increasing the personal income tax on lawyers and lobbyists by excluding those professions from Ohio’s business income deduction. But just over three months later, Gov. Mike DeWine this week signed Senate Bill 26 to undo this unfair tax change. Ohio attorneys who own their business will now continue to be able to claim this deduction on their state income taxes, just as other business owners can do. The Ohio State Bar Association led the effort. 11/7/2019