Tax and Finance Management

IRS Clarifies ‘Supply Chain’ Claims Tied to ERC

OMA Connections Partner CliftonLarsonAllen reports that the IRS allows an employer to qualify for the employee retention credit (ERC) if a supplier’s operations were suspended due to a governmental COVID-19 order. But in this guidance, the firm writes that the IRS has clarified that businesses do not qualify for the ERC simply because of general supply chain disruptions. 8/16/2023

Ohio Revenues Stay Strong With New Fiscal Year

Ohio’s July tax receipts improved by more than $60 million (3%) over the same period last year, according to the latest data from the Office of Budget and Management. All the major taxes collected more than forecast except the auto sales and use tax, which came up $26.1 million (15.2%) short. Read OBM’s monthly financial report. 8/10/2023

Guidance: Internal Controls in Manufacturing

Effective internal controls translate into more reliable information that is vital for a company’s decision-making to achieve its goals. Check out this insight from OMA Connections Partner HBK to ensure your company is making the most of its inventory controls and cost controls to enhance business performance. 8/10/2023

Economic Barometer: U.S. Manufacturing Index Shows Continued Contraction

• The U.S. Manufacturing Outlook Index published by OMA Connections Partner RSM has registered its 15th consecutive month of negative values, but recovery is expected soon, experts say.
• Unlike manufacturing, services have been in and out of contraction, but mostly positive, with prices increasing for several consecutive months.
• U.S. consumers are depleting their excess savings and that could hamper the economy’s ability to achieve a soft landing, according to Federal Reserve economists.

Meanwhile, ratings agency Fitch this week downgraded the U.S. government’s long-term credit rating, but most economists say they don’t have immediate concerns. These charts give an overview of the nation’s long-term fiscal challenges. 8/3/2023

RSM: Interest Rate Hike Unlikely in September

OMA Connections Partner RSM does not expect another interest rate increase in September as the Fed begins to pivot from solely focusing on its price stability mandate to beginning to balance that with its other mandate — full employment. Read RSM’s insight. 8/1/2023

Webinar: Strategies for Finance Digitalization

On Thursday, Aug. 10, OMA Connections Partner Plante Moran will host a webinar to spotlight how digital transformation can increase business efficiencies and profitability. This event will showcase best practices while helping participants break down the finance digitalization journey into actionable steps. Register now. 7/31/2023

Several Ohio Counties Finalizing Tax Valuation Changes

Ohio requires counties to reappraise real property tax values every six years. In the interim, counties are required to update values. OMA Connections Partner Vorys reports that for tax year 2023, 28 counties are required to conduct a full reappraisal and another 13 counties must update values. See the list of counties. 8/1/2023

U.S. GDP Growth Beats Estimates for Q2

Nationwide, real GDP grew 2.4% at the annual rate in Q2 2023, building on the 2% growth rate of Q1, according to federal data. This as business investment on productivity-enhancing equipment continues to be one of the brightest spots across the U.S. economy, according to RSM, an OMA Connections Partner.

Chad Moutray, chief economist for the National Association of Manufacturers, published this GDP graph, noting “the U.S. economy continues to show signs of resilience despite ongoing challenges and worries about the outlook.” 7/27/2023

Appealing a Property Tax Assessment

Nationwide, property taxes comprise nearly 40% of all state and local taxes paid by businesses, the most of any category of tax. OMA Connections Partner CliftonLarsonAllen has published two-part guidance for businesses appealing a property tax assessment. Read it here and here. 7/24/2023

At a Glance: State-Local Sales Tax Burden

A mid-year comparison by the Tax Foundation shows Ohio’s average combined state-and-local sales tax rate of 7.24% is 20th highest in the U.S., higher than neighboring states. Ohio’s position is unchanged from 2022. Ohio’s state sales tax rate is 5.75% (27th highest), while its average local sales tax rate is 1.49%. 7/18/2023