On Dec. 22, Gov. John Kasich signed legislation that clarified the 2013 small business tax statute, assuring that Sub S Corps adopting the PEO model will enjoy the same tax savings as all other Ohio small businesses. GMS took a leadership position in the industry that led to this legislative victory.
In 2013, Ohio business owners became eligible for small business deductions, reducing tax rates down to three percent. It wasn't until August 2016 that a client's tax practitioner noticed the issue on the Ohio Department of Taxation website containing instructions for the small business income deduction. FAQ No. 28 said that Sub S owner's wages paid by a PEO is not subject to the deduction.
The client contacted their Client Services Manager, who in turn contacted GMS's Chief Financial Officer, Mark Watkins. Watkins realized that this was a major issue for all PEO clients who are Sub S Corps in the state.
If you've browsed through our site, you've probably seen our tagline: "Employee Management Made Simpler. Safer. Stronger."
As a Professional Employer Organization (PEO), we live up to this goal by removing your burden of keeping up with ever-changing HR regulations. We centralize HR functions for owners and employees with our HR Pyramid business software (simpler). We educate our customers on how new laws will impact their business. We provide high-quality customer support. And in the end, our clients spend less time worrying about whether they are implementing compliant HR practices (safer) and more time growing their bottom line (stronger).