rlewis, Author at Whalen & Company, CPAs

Hearings Taking Place on Legislation to Simplify Ohio’s Municipal Income Tax System

rlewis on May 7, 2013

Proponents Emphasize the Goal Is to Reduce the Cost Burden on Small Businesses

Proponents and opponents of legislation seeking to establish a uniform, cost-effective set of rules and regulations governing the municipal income tax system are expressing their views before Ways and Means Committee members of the Ohio House. Hearings are continuing during the week of May 6.

House Bill 5, the latest legislative effort to simplify the state municipal income tax system, was introduced in January. It has support from business groups, including the Ohio Society of CPAs, a coalition of organizations and individual taxpayers. They contend that the administrative burden and costs for many Ohio businesses impedes them from creating more jobs across Ohio.

Ohio is just one of a few states in which municipalities impose an income tax on individuals and businesses. Those businesses must track and comply with as many as 600 different sets of tax ordinances, depending on where they conduct business.

The proposed legislation would establish a more uniform municipal tax code that all municipalities assessing a tax on businesses or individuals would follow, including a uniform definition of income, withholding, penalties and interest, and all related rules and regulations other than tax rate and reciprocity rate.

The bill creates the Municipal Tax Policy Board charged with creating a uniform form. It may also recommend rules. The board will be comprised solely of seven city representatives with no business or taxpayer representatives.

Five of the seven members are required to be local tax administrators. Of the two remaining members, one must be an employee of the Regional Income Tax Authority (RITA) and one must be an employee of the Central Collection Agency (CCA). Both RITA and CCA are agencies that currently collect municipal taxes for a number of cities and villages throughout Ohio.

In addition to unifying some of the definitions for income and deductions, the bill also requires not counting anything less than a half-day as a workday for income tax purposes. It also would expand the number of days that someone must work in a community before he or she is liable for any income tax there. Currently, the threshold is 12 days per year. The proposal would expand that to 20 days.

Opponents, largely from cities, insist that the cost of compliance with the current municipal tax laws is overstated. Proponents contend that Ohio’s current municipal tax system presents compliance problems for individual and business taxpayers, costs existing employers resources that could be redirected to growing their businesses and creating more jobs, and puts Ohio at an economic disadvantage for attracting new employers.

The proposed legislation does not call for a centralized collection system, nor is it looking to reduce the amount of tax that individuals and businesses must pay.

BWC, Governor Propose $1 Billion Rebate to Employers

rlewis on May 7, 2013

Proposal Includes Tripling Safety Grants and Lower Rates from Modernizing Operations

The Ohio Bureau of Workers’ Compensation (BWC) and Governor John Kasich have proposed that the BWC give back $1 billion to private employers and local governments in the form of rebates. The proposal also triples investments in worker safety grants and lowers all rates by modernizing workers’ comp operations. The $1.9 billion proposal is made possible by larger-than-expected fund balances at BWC generated by strong investment management.

The $1 billion in rebates equals about 56 percent of the most recent annual premium of the approximately 210,000 private and public sector employers. The BWC would send the rebates to employers by check.

The rebate proposal is expected to be submitted to the BWC Board of Directors for approval at its meeting in late May. The proposed rebates will apply to employers who are in discount programs as well as those who are not.

According to the proposal, companies and government employers that pay premiums into the state fund for injured workers and have up-to-date policies are eligible for a rebate of 56 percent of what they were billed for their last policy year. In addition to the rebates, the bureau wants to require employers to pay premiums upfront instead of after a coverage period.

The proposed switch to prospective premium payments requires legislative approval, which the bureau hopes to gain this year. The switch would not go into effect until 2014 at the earliest.

The bureau wants to give employers a credit equal to their previous six months’ premium as part of the transition to a new payment system. To do so, the BWC would issue a credit to employers totaling $900 million to help offset the costs associated with the transition. The switch would lead to rate reductions of two percent for private employers and four percent for public employers.

Along with the request for rebates, the proposal also increases the Ohio’s Safety and Wellness Grant Program from $5 million to $15 million. The state’s program has proven effective. In companies receiving grants, claims frequency has decreased 66 percent and claims costs per full time employee has decreased 86 percent.

Furthermore, the proposal lowers rates 2 percent for private employers and 4 percent for public employers by modernizing BWC’s payment system.

Details on the proposal are still being finalized. All three elements would be funded from BWC’s net assets, which have grown to $8.3 billion and are far in excess of the target funding ratio of assets to liabilities established by the BWC board in 2008.

Two Clients Recognized for Promoting Health of Their Employees

rlewis on April 23, 2013

Two clients were recognized in Columbus Business First’s inaugural Healthiest Employers of Central Ohio Awards Program. Award recipients offer health and wellness initiatives that promote a culture of staying active, eating right, managing stress and offering preventative disease screenings.

Hondros College was honored among the medium employers (101 to 500 employees) and Portfolio Creative was recognized among the small employers (two to 100 employees).

Employees of the companies who applied to participate in the awards program completed a health assessment survey and the company completed a questionnaire that covered six key areas of workplace wellness: culture and leadership; commitment, foundational components; strategic planning; communications and marketing; programming and interventions; and reporting and analysis.

All of the award recipients were featured in a supplement to the March 29 Business First.

TOR-VETM Empowers Disabled Combat Veterans through Motorsports

rlewis on April 23, 2013

Combat veterans, on the grid, before the race at the Daytona International Speedway in 2013.

Client Pete Cline, founder of Team Ohio Racing / Veterans Empowered Through Motorsports (TOR-VETM), is partnering with two Whalen clients, Oxford Consulting Group and Portfolio Creative, to actively engage and empower disabled combat veterans through their motor sports efforts. The team also has assistance from the Wounded Warrior Project (WWP) and is supported by 11 other businesses and organizations.

Team Ohio Racing is the first motorsports team to fully integrate disabled veterans into an active race team environment. By working with the Wounded Warrior Project, local alumni-warriors are incorporated into their AMA (American Motorcyclist Association) Pro Racing Harley-Davidson Vance & Hines XR1200 team. Team Ohio Racing delivers respect to the WWP mission by working with WWP-Alumni members, allowing them to focus on their abilities instead of disabilities, and to heal and empower through motorsports.

Oxford Consulting Group partnered with TOR-VETM for two races in 2012 and will again support the organization’s unique program outreach in positively impacting combat veterans in 2013. TOR-VETM recently supported two Harley-Davidson entries at Daytona International Speedway with great success.

“To see these veterans in action as they expertly supported the race teams in 2012 was phenomenal,” said Michelle Kerr, president of Oxford Consulting Group. “To hear about their feelings of accomplishment, confidence and empowerment that resulted was such a rewarding and inspirational experience. We look forward to helping Team Ohio Racing extend this excellent opportunity to other veterans in 2013.”

Cline said that because of Portfolio Creative and Oxford Consulting Group’s direct support, Team Ohio Racing will have a presence in the AMA paddock for the remaining 2013 Vance & Hines Harley-Davidson races. To learn more about TOR-VETM, visit the organization’s website at www.tor-vetm.org, or follow them on Facebook, Twitter @TeamOhioRacing or Pinterest.

Oxford Consulting Group, Inc. is a leading information technology (IT) consulting firm and solutions provider that has developed, implemented and supported the technology portfolios of hundreds of companies across North America. Established in 1998 and headquartered in Westerville, Ohio, Oxford Consulting Group has a team of nearly 200 talented, dedicated, creative and customer-focused business and technology professionals. The company’s breadth of solutions range from delivering business to business integration and supply chain management solutions for large enterprises, to IT staffing and placement services, to IT services for small to mid-sized businesses.

Portfolio Creative is a creative staffing and recruiting firm connecting clients with creative talent in all areas of design, marketing, communications and advertising. It also provides educational resources, payroll and direct hire services. Founded in 2005, the company has been recognized as an Inc. 500 fast growth company and with awards from Staffing Industry Analysts, Columbus CEO magazine, the Columbus Chamber, Enterprising Women magazine, the Stevie Awards for Women in Business, the American Staffing Association, the Ohio Department of Development and the National Association of Women Business Owners. Co-owners are Catherine-Lang-Cline and Kristen Harris.

Author: rlewis

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