News and Analysis
Last month, Ohio’s total General Revenue Fund tax receipts fell short $159.4 million, or 10.5%, from what analysts had projected before the COVID-19 outbreak. Despite last month’s huge dip in economic activity, the state is still in the black for the fiscal year to date, having collected $89.5 million over estimates, or 0.5%.
Ohio’s Office of Budget and Management says that income tax revenues this month will likely miss the April estimates “by a significant margin” due to lawmakers moving the tax filing deadline to July 15. 4/6/2020
This week, House Speaker Larry Householder (R-Glenford) said state lawmakers will likely need to utilize the state’s rainy day fund to close an expected budget gap due to the COVID-19 outbreak.
According to Gongwer News Service, the speaker told WOSU Radio: “We’re sitting on a $2.7 billion fund, and we’re looking at some significant shortfalls in our budget. That budget stabilization fund is going to literally help stabilize our budget.”
In the same interview, Householder said the state budget could be as much as $2 billion short of projections by the end of the fiscal year on June 30, according to Hannah News Service. Asked about Gov. DeWine’s order to agencies to cut 20% of their budgets, Householder said, “It will not be anywhere close to what we need to cut.” 4/7/2020
Speaker of the House Larry Householder (R-Glenford) recently named Reps. Paul Zeltwanger (R-Mason) and Terrence Upchurch (D-Cleveland) co-chairs of the Ohio House Economic Recovery Task Force, created to identify ways to help Ohio as the COVID-19 crisis subsides. The group includes 22 other House members.
The task force has already started meeting remotely. It plans to invite guests from various sectors of the economy, including manufacturing. Rep. Zeltwanger has told members he hopes to craft a framework for recommendations by the end of next week. 4/8/2020
Beginning today, April 3, the U.S. Small Business Administration (SBA) will accept applications for the Paycheck Protection Program (PPP). You must apply through qualified lenders. For details, see the SBA’s press release. Also, here is a quick overview of the PPP.
Please note that the U.S. Treasury Department has encouraged businesses in need to apply as quickly as possible due to a funding cap. 4/3/2020
The federal government’s “phase three” COVID-19 emergency aid package — known as the CARES Act — included $2.2 trillion in economic relief for individuals and businesses affected by the pandemic. It includes the Paycheck Protection Program for small businesses.
Here is valuable insight on the CARES Act from selected OMA Connections Partners:
- Clark Schaefer Hackett’s summary of the CARES Act.
- RSM’s summary of CARES Act’s loans for businesses.
- Benesch’s summary of business tax provisions in the CARES Act.
- GBQ Partners’ summary of the CARES Act.
- Frantz Ward’s summary of the CARES Act.
Also, here are summaries of the “phase two” legislation — the Families First Coronavirus Response Act (FFCRA) — which included provisions on paid sick leave and expanded unemployment benefits. 4/1/2020
Today, April 3, at 11:30 a.m. (EDT), OMA Connections Partner GBQ Partners will host a free webinar on the tax provisions in the federal CARES Act — Washington, D.C.’s “phase three” response to the COVID-19 pandemic. Topics to be discussed include employee retention credit and employer payroll tax payments, as well a net operating loss provisions and excess business loss limitations. Register here. 4/3/2020
OMA Connections Partner RSM has shared this insight, which examines the short-term and intermediate effects that state and local taxation could have on manufacturers during the COVID-19 outbreak. 4/2/2020
OMA Connections Partner Clark Schaefer Hackett is offering an on-demand webinar that covers the fast-changing legislative response to the coronavirus. Topics include the federal Families First Act and the CARES Act, liquidity and financial assistance, and state and federal tax filing updates. Watch at your convenience. 4/1/2020
The IRS has posted filing and payment deadline questions and answers to address the new July 15 federal filing and payment extension. The IRS also has created this page to provide updates on mission-critical functions of the IRS. It includes an overview of changes related to IRS operations and guidance for taxpayers during this period. 3/25/2020
Late last week, the IRS and U.S. Department of Labor announced that employers subject to the Families First Coronavirus Response Act (FFCRA) will be eligible for two new refundable payroll tax credits that will “immediately and fully reimburse them” for complying with its paid leave mandate. Analysis by HR Dive says the credits are designed to grant 100% reimbursement for paid leave pursuant to the FFCRA, and that health insurance costs are included in the credit. Read the article. 3/25/2020