News and Analysis
The Columbus Dispatch reports that at midnight July 1, “Ohio closed its financial books on a painful fiscal year.” And the new fiscal year confronts state policymakers with a projected $2.1 billion shortfall in the $35 billion general revenue fund budget.
The story notes that “while seen as a last resort, the depth of the problem could prompt talk of tax or fee increases in the tax-averse GOP-controlled General Assembly.”
The OMA is monitoring this situation carefully. 7/1/2020
The IRS reminds taxpayers and businesses that 2019 income tax liabilities, as well as postponed April 15 and June 15, 2020 estimated tax payments, are due July 15, 2020. This postponement provided temporary tax relief in response to the COVID 19 pandemic.
A list of forms due July 15 is on the Coronavirus Tax Relief: Filing and Payment Deadlines page. The IRS says electronic payment options are the optimal way to make a tax payment. (Also, here is the Ohio Department of Taxation online services page.) 6/29/2020
Are you a smaller manufacturer that is losing significant sales to imports? The federal Trade Adjustment Assistance for Firms (TAAF) program can help qualified manufacturers enhance their competitiveness by providing as much as $75,000 in matching funds for business improvement projects such as quality certifications, employee training, and productivity improvement.
For Ohio companies, the TAAF program is managed by the Great Lakes Trade Adjustment Assistance Center (GLTAAC), funded by the U.S. Department of Commerce to support some of these helpful projects. To learn more or determine if your firm qualifies for matching funds, email GLTAAC Project Manager Scott Phillips or call (734) 787-7509. 6/30/2020
With the extended July 15 tax deadline quickly approaching, HowMuch.net has produced this infographic examining the federal-state income tax burden faced by median income earners in all 50 states. The study found Ohio had the fifth-lowest combined income tax burden, with 18% taken from the paychecks of those earning the state’s median income of $54,533 (based on 2018 U.S. Census data). That’s compared to a tax rate of more than 25% in Maryland and nearly 27% in Hawaii.
The Buckeye State did not fare nearly as well in another tax study released this week. WalletHub.com found Ohio to have the nation’s 12th highest overall tax burden after factoring the main three types of state taxes — property taxes, individual income taxes, and sales and excise taxes — as a share of total personal income. 6/24/2020
The IRS has issued updated FAQs for the employee retention tax credit, the temporary refundable payroll credit for eligible employers impacted by COVID-19. The updated FAQs relate to the tax credit’s governmental order test and can be found here and here. 6/24/2020
If you are interested in applying for a Paycheck Protection Program (PPP) loan on behalf of your business, you must submit an application to your lender soon so it can be submitted to the SBA before the June 30 deadline.
OMA Connections Partner Thompson Hine has published this guidance on the recently revised PPP Loan Forgiveness Application and “EZ” version. 6/25/2020
Each quarter, OMA Connections Partner RSM offers free accounting updates for middle market businesses on recently issued and proposed accounting guidance. The next accounting update webcast will be Thursday, July 16, at 1 p.m. (ET). Learn more or register here. 6/24/2020
On the second anniversary of the U.S. Supreme Court’s South Dakota v. Wayfair decision, OMA Connections Partner RSM has examined the current sales tax landscape, the evolving compliance obligations of remote sellers, and the questions that linger still today. 6/24/2020
Recently, financial publications, including The Wall Street Journal, have reported that some investors are betting inflation could eventually spike as central banks and governments across the globe print money and spend in response to the pandemic. But for the time being, inflation does not appear to be a threat, according to this model by the Cleveland Federal Reserve. The online tool, which considers several factors, predicts a 1.23% annualized rate of inflation over the next decade. 6/24/2020
With more than 40 million Americans having filed for unemployment insurance (UI) since mid-March, OMA Connections Partner RSM says many states could be forced to borrow federal dollars to meet their UI obligations, as Ohio already has.
In this analysis, RSM notes that assuming the loan balance is still outstanding as of Nov. 10, 2022, employers in these states could be subject to a 0.30% increase in their FUTA tax rate for all of 2022, increasing the rate from 0.60% to 0.90%. FUTA tax rates can increase further — in increments of 0.30% per year — should loans remain outstanding in subsequent years.