The end of the year is an extremely busy time for most business owners and your attention is pulled from managing one task to the next. One of the most important responsibilities business owners face – and one of the most stressful to manage – is payroll tax management.
Let’s take a minute to review two major tax obligations that are of critical importance as the calendar year comes to a close.
Effective September 1, new withholding tables will result in increased take-home pay for Ohio workers. Governor Kasich’s plan will lower the income tax rates 10% over the next three years with a majority of the decrease coming in 2013. In addition to the lower payroll withholding rates, small businesses will see tax savings of up to 50%. And while that’s great for payroll and businesses, Ohio will also see an increase in sales tax by .25%.
A brief description of the withholding rate change was released by Tax Commissioner Joe Testa on August 26th, and can be found at: http://www.tax.ohio.gov/Portals/0/communications/news_releases/NR_TaxWithholdingCut.pdf.
The Department of taxation released an update of the sales rates on their website at: http://www.tax.ohio.gov/sales_and_use/rate_changes.aspx.
Have questions? Leave a comment below or contact us at 330-659-0100!
For several years, GMS has been paying Ohio local taxes via Ohio Business Gateway. This method has saved us from printing 1,500 checks annually and the paper forms to go along with them. In a single quarter, GMS will pay over 1.2 million dollars in local tax payments to 180 jurisdictions. But what’s more exciting is that we uploaded and processed our first live electronic returns & payments to the ODJFS (Ohio Department of Job and Family Services) for Q2, 2013.
What does this really mean?
- We sent the agency a deposit that exceeded 1 million dollars.
- We avoided printing over 700 checks and the accompanying 1,800 sheets of additional paper.
- We avoided the extravagant shipping charges for such a large package and secured the payments by uploading rather than the standard delivery method.
- We also no longer need to wait the typical 2-4 weeks for our returns to post, they are posted almost immediately.
- And best of all, we were the first TPA contacted to work with ODJFS on this filing method.
We’re very proud of the relationship we have with ODJFS and are happy to announce that we are now completely electronic with them. We get automated rate adjustments, automated tax notices and now electronic returns. If you have questions about your ODJFS account, please feel free to contact us at email@example.com.
My two older boys, ages 9 and 10, are playing ‘kid pitch’ baseball this year. Believe it or not, when I asked them what position they wanted to play, they both said “Dad, I want to be the pitcher”.
Then we asked each player on the team what position they wanted to play and each and every player said “Pitcher”. On paper this is not strange, as this is the most glorified position in baseball. After all, they make the most money, get the most publicity (when they are good), and seem to have the biggest fan base.
The other coaches and I talked to our 13-man roster about how important every position is on the team and how every position contributes to the overall goal. We teach them that they all have to play together to win.
Do any of these sound familiar?
- Losing good employees to competitors.
- A cranky work environment.
- Excessive workplace injuries.
- Out-of-control healthcare costs.
- Ridiculously high unemployment insurance costs.
Virtually every company in America is bound by the Federal Labor Standards Act of 1938 (FLSA).
This law "regulates the status of employees (versus independent contractors) and provides for a minimum wage and overtime unless the employee meets an exempt classification." However, the scope of this law is not simply limited to employees’ wages.