If you allow employees to telecommute, be sure to consider the potential tax implications. Hiring someone in another state, for example, might create sufficient nexus to expose your company to that state’s income, sales and use, franchise, withholding, or unemployment taxes. And the employee might be subject to double taxation if both states attempt to tax his or her income.

The rules vary by state and also by type of tax — and become even more complicated for international telecommuters. So it’s a good idea to review the rules before you approve a cross-border telecommuting arrangement.

The Patient Protection and Affordable Care Act of 2010’s shared responsibility provision, commonly referred to as “play or pay,” was scheduled to take effect Jan. 1, 2014. But on July 2, the U.S. Treasury announced that the effective date would be delayed one year, to Jan. 1, 2015. IRS guidance will be issued providing more details and perhaps additional changes.
The original provision:

• In some cases imposes nondeductible penalties (generally $2,000 per full-time employee) on “large employers” that don’t offer coverage or that provide coverage that is “unaffordable” or that doesn’t provide “minimum value,” and
• Defines a “large employer” as one with at least 50 full-time employees, or a combination of full-time and part-time employees that’s “equivalent” to at least 50 full-time employees.

The rules are complex, and the new IRS guidance is expected to clarify — and perhaps simplify — them. Please contact us for the latest information and to determine how your company may be affected.

In partnership with Ohiomeansjobs.com, the Ohio Development Services Agency is once again offering funding for the Ohio Incumbent Workforce Training Program. This program provides funds to reimburse eligible employers for certain training costs for their employees.  The funds are available on a first come, first served basis according to when the online application is received. Each employer is eligible for up to $500,000 in assistance per fiscal year. Only one application per employer will be accepted per program year.

Please note: this is NOT a tax credit! The employer must first pay for the training and then request a reimbursement. There are also timelines regarding when the training needs to be performed. Plus, the training must relate to the employee’s current position or for future advancement within the company.

For the fiscal year 7/1/2013 – 6/30/2014 the date to apply has not yet been announced. But please be aware that you must take action NOW to be prepared for this program on the date it begins. The last time (fiscal year 7/1/2012 – 6/30/2013) the state ran this program all the funds were accounted for on the first day!  We will be monitoring the website daily to determine the exact date of the program.

For additional information on the Ohio Incumbent Workforce Training Voucher Program and the Online Application from last year go to: http://development.ohio.gov/bs/bs_wtvp.htm

Please contact your Whalen business advisor if you have any questions or you would like our assistance.