This week, several Ohio organizations, including the OMA, wrote Ohio’s federal delegation, seeking lawmakers’ assistance to address an Ohio-specific issue regarding the eligibility of businesses for the Payroll Protection Program (PPP) and Employee Retention Credit (ERC).
Due to recent Ohio Bureau of Workers’ Compensation (BWC) premium refunds (or dividends) sent to employers — and the lack of clarity regarding the designation of these refunds for tax purposes — Ohio businesses applying for the PPP or ERC could be negatively impacted by current federal law that says borrowers must certify they experienced a revenue reduction of 25% or more calculated by comparing gross receipts in any 2020 quarter with the same quarter in 2019.
Specifically, the groups asked the delegation to urge the Small Business Administration to exclude BWC refunds from Ohio businesses’ federal gross receipts when considering PPP and/or ERC applications. Read the letter sent by the organizations. 2/17/2020