News and Analysis
New Guidance on PPP Loans Provided to Businesses Changing Ownership
October 9, 2020Last week, the U.S. Small Business Administration released a procedural notice related to Paycheck Protection Program (PPP) loans and changes of ownership. OMA Connections Partner GBQ Partners has published this analysis of the SBA’s new guidance and the steps a buyer and seller must take in order to obtain approval or affect a change in ownership for a company with a PPP loan. 10/8/2020
How Do the Trump and Biden Tax Plans Differ?
October 2, 2020With the presidential election just weeks away, many voters are beginning to pay closer attention to President Trump and former Vice President Biden’s positions on key issues — including taxes. OMA Connections Partner Clark Schaefer Hackett has published this insight to compare and contrast the tax plans of both candidates. 10/1/2020
Federal Program Aims to Help Manufacturers Hurt by Imports
October 2, 2020The Great Lakes Trade Adjustment Assistance Center (GLTAAC) is “a bit of secret to many small manufacturers,” according to a report in MiBiz, a business publication from the state up north. But for 36 years, GLTAAC has helped import-challenged manufacturers in Ohio, Indiana and Michigan via the Trade Adjustment Assistance for Firms (TAAF) program to enhance their competitiveness.
The GLTAAC works with small manufacturers, providing general consultation and funds up to $75,000 that must be matched by the company itself. The quickest way to learn more about TAAF benefits and eligibility is to contact GLTAAC Project Manager Scott Phillips by email or at (734) 787-7509. 9/28/2020
Export Assistance Grants for Ohio Businesses
October 2, 2020The Ohio Development Services Agency has announced that applications are now being accepted for the Ohio International Market Access Grant for Exporters (IMAGE) program. Supported by U.S. Small Business Administration through the State Trade Expansion Program, IMAGE provides eligible companies a 50% reimbursement of up to $10,000 in grant funds to engage in activities that increase export sales. 9/28/2020
Report: Final 163(j) Rules a Win for Manufacturers
October 2, 2020In late July, the IRS issued final regulations on Internal Revenue Code Section 163(j), which limits the deductibility of business interest expense under the Tax Cuts and Jobs Act of 2017. According to OMA Connections Partner Schneider Downs, the final regulations provide manufacturers relief in the area of depreciation expense. Read more here. 9/29/2020
Ohio Minimum Wage to Increase on Jan. 1
October 2, 2020Ohio’s minimum wage will increase from $8.70 an hour to $8.80 on Jan. 1. The minimum wage will apply to employees of businesses with annual gross receipts of more than $323,000 per year. Employers can access the 2021 Minimum Wage poster for display via the Ohio Department of Commerce’s website. 10/1/2020
Bill to Repeal Emergency Withholding Tax Provision Gets Hearing
September 25, 2020This week, Sen. Kristina Roegner (R-Hudson) gave sponsor testimony on Senate Bill 352, which would repeal the temporary municipal income taxation rule for employees who are working from home due to COVID-19. That provision, passed early in the pandemic to protect cities’ income tax revenues, allowed employers to continue to send withholdings to an employee’s principal city of work rather than to the city in which the employee lives.
The issue has created much conversation since Ohio’s state of emergency remains in place. The OMA fought for the creation of the temporary provision so employers’ tax systems would not be overwhelmed as many employees work remotely for an indefinite period of time. The OMA created a tax working group to address the issue, which will be discussed at the next OMA Tax Committee meeting. 9/24/2020
IRS Issues Notices on Deadline to File, Home Office Deduction
September 25, 2020The Internal Revenue Service is reminding taxpayers who filed an extension that the Oct. 15 due date to file 2019 tax returns is approaching. The agency has also issued a reminder about the home office deduction, which may allow taxpayers working from home to deduct certain expenses. 9/23/2020
Policy Group: Ohio’s Largest Cities Could Lose $300M If Income Tax Law Is Changed
September 18, 2020A group that advocates for Ohio municipalities is concerned about two legislative proposals that seek to make changes in how income taxes are collected.
According to a report by the Statehouse News Bureau, House Bill 754 and Senate Bill 352 would repeal a provision in House Bill 197 passed early in the pandemic to protect cities’ income tax revenues. That provision was spearheaded by the OMA and its allies to ensure Ohio’s businesses would not have to worry about new withholdings in addition to COVID-19 challenges. HB 754 and SB 352 would instead redirect local income taxes paid by employees working from home to where they live — not the cities in which their normal workplaces are located.
The Greater Ohio Policy Center says the bills would cost Ohio’s six largest cities, which generate more than half of the state’s GDP, more than $300 million a year. The issue remains a top concern for manufacturers with so many office workers continuing to work from home. 9/16/2020
Ohio’s August Tax Receipts Stronger Than Expected
September 18, 2020Preliminary data from Ohio’s Office of Budget and Management (OBM) show that August tax receipts to the state’s general revenue fund (GRF) exceeded estimates. Total tax receipts beat estimates by 3.2%, or $69 million above the budget forecast.
In its monthly report, OBM said the commercial activity tax (CAT) fell below estimates by 9.9%, but this period reflects the second quarter, which included the most severe drop in economic activity during COVID-19. In August, personal income tax saw a year-over-year increase of $116.5 million (16.2%). Non-auto sales tax increased by $17.3 million (2.2%), and auto sales grew by $11 million (7.6%). Year to date, Ohio’s overall tax receipts are $830.4 million (21.6%) above last year. 9/15/2020