Tax and Finance Management

Bill Would Repeal COVID-19 Tax Withholding Law

This week, the House Ways & Means Committee received testimony on House Bill 157, legislation that would expedite the repeal of a temporary law (HB 197) enacted last session to ensure municipal income tax withholdings are based on an employee’s principal work location — not where he/she may be working remotely during COVID-19.

While the Legislature pushes to end this practice immediately, the OMA in its testimony continued to advocate for ample lead time to allow employers to prepare their payroll systems and account for ongoing variables, such as vaccine availability for their workforces and hybrid work arrangements. Contact the OMA’s Rachael Carl with questions or if you would like to be added to the OMA working group on this issue. 3/11/2021

Update on President Biden’s Tax Agenda

The Biden administration’s focus on stimulus and infrastructure, paired with a very slim Democratic majority in Congress, make it unlikely that sweeping new tax legislation will take effect during President Biden’s first year in office. But the Biden administration might be able to accomplish some of its tax policy objectives this year through other means. OMA Connections Partner Crowe has published this update on possible areas of focus for Biden’s tax agenda and how it might affect your bottom line. 3/10/2021

Made-in-China PPE Still Excluded From U.S. Tariffs

Despite President Joe Biden’s recent executive order to examine U.S. supply chains — including those for personal protective equipment (PPE) — the U.S. will continue to exclude face masks, gloves, and other medical supplies made in China from tariffs imposed by the Trump administration. According to a report by Politico, the duties were first suspended last year due to the sudden shortfall in PPE. The latest extension will last through September. 3/8/2021

What’s in the Latest Federal COVID-19 Relief Bill?

OMA Connections Fisher Phillips has published a summary of President Biden’s $1.9 trillion spending bill, as approved by the U.S. House. The bill, which is now being considered by the Senate, includes the following:

• An extension of tax credits for employers that voluntarily provide FFCRA leave from March 31, 2021 to Sept. 30, 2021;
• An additional $7.25 billion for the Paycheck Protection Program; and
• An expansion of supplemental weekly unemployment benefits from $300 a week to $400 a week, while increasing the number of entitlement weeks from 50 weeks to 74 weeks, and extending unemployment benefits from mid-March through Aug. 29.

Read the summary here. 3/2/2021

A Practical Checklist for Financial Reporting in 2021

Finance teams must prepare for a year of financial reporting challenges. As reporting season gets underway, OMA Connections Partner Crowe has published this checklist to help businesses stay on track. 3/3/2021

Study: Biden Corporate Tax Hike Would Cut 159K Jobs

A new study by the non-partisan Tax Foundation finds that President Biden’s plan to increase the corporate tax rate to 28% would weaken the economic recovery and hurt competitiveness. The report found that the increase would bring the nation’s federal-state combined tax rate to roughly 32% — the highest statutory tax rate in the developed world — and would “reduce long-run economic output by 0.8%, eliminate 159,000 jobs, and reduce wages by 0.7%.” 2/24/2021

Study: Ohio’s Property Tax Burden Above U.S. Average

A new comparison by WalletHub.com finds that Ohio’s effective real-estate tax rate is 1.56%. As a result, Ohioans pay nearly $3,400 in annual property taxes on a house that’s worth $217,500 — the median home value in the U.S. This is the 11th highest property tax burden in the nation and well above the country’s average property tax bill ($2,471). However, Ohio’s property tax burden is considerably less than that of 12 other states, including a few Big Ten Conference states. 2/23/2021

Succession Planning Webinar, March 23

Whether or not you’re planning (or even thinking) about selling your business, you should have a plan to maximize your value when you’re ready to exit. On March 23, OMA Connections Partner Gilmore Jasion Mahler will host a free webinar featuring transaction advisory experts to discuss succession planning for businesses. Owners are encouraged to attend, regardless of whether they’re considering a sale. 2/23/2021

Ohio Organizations Seek Federal Delegation’s Help to Ensure Ohio Businesses Are Eligible for PPP, ERC

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

Commissioner McClain Visits OMA Tax Committee

The OMA Tax and Finance Committee this week held its first meeting of 2021. Chaired by Meredith Mullett, senior manager of state tax operations for the J.M. Smucker Co. — and sponsored by OMA Connections Partner Huntington — the meeting featured a discussion with Ohio Tax Commissioner Jeff McClain, who updated members on collections during COVID-19 and recent improvements implemented by the Department of Taxation.

Justin Stallard and Bob Horstman from OMA Connections Partner RSM presented this briefing on the Employee Retention Tax Credit (ERC). Horstman said RSM has helped businesses that are applying for the ERC to identify and document how COVID-19 restrictions have impacted their operations.

Other highlights included a report from OMA Tax Counsel Justin Cook of Bricker & Eckler LLP. The next committee meeting is scheduled for June 2. 2/17/2021