Hesch Law Cincinnati

Category: Blog

  • Amended Substitute House Bill 5 (HB 5)

    Dear Client and Friends:

    This year Municipal tax reform will take effect under the Amended Substitute House Bill 5. The Amended Substitute House Bill 5(HB 5) was signed into law on December 19, 2015. The new provisions take effect beginning on or after January 1, 2016. HB 5 provides some relief to the overly burdensome process for businesses in determining what local tax to pay and withhold from their employees when they do business in multiple municipalities.

    I have outlined just a few of the key provisions under the Municipal Tax Reform:
    (1) Mandatory 5 year Net Operating Loss carry forward. Requires all municipal corporations to allow businesses to deduct new net operating losses(NOL) and to allow a five-year carry forward of such losses first incurred in taxable years beginning on and after January 1, 2017, and permits pre-existing losses to continue to be carried forward if current ordinances allow.
    (2) Withholding provisions:
    a. The “occasional entrant rule” will increase the number of days from 12 to 20 days whereby a traveling employee may enter a municipality before their employer is required to withhold on wages earned.
    b. Employers will generally be required to begin withholding on the 21st day the employee conducts business within a municipality. There are limitations to the new law. If an employer expects the employee will work within a municipality more than 20 days, the employer will be required to begin withholding on day 1.
    c. A “small employer” withholding exception will be available for businesses with gross receipts of less than $500,000. These businesses will not be subject to the 20 day rule and will only be required to withhold income tax for their principle work municipality (fixed location). Employee’s not subject to the local tax at the business’s fixed location can apply for a refund, but the employer still needs to withhold tax on their fixed location.

    Listed above are just a few of the tax changes taking effect on January 1, 2016. If you would like a copy of the summary of the Amended Substitute House Bill 5, please give us call. The new law only gives taxpayers a short time to educate and prepare themselves for numerous changes in the municipal tax law. We will be working with our clients throughout the coming weeks to help them implement these changes. If you have any questions or have concerns about the effect of the changes on your business, please call us at (513) 731-6612.

  • Peace of Mind

    Submitted by: Chris Allen, President – The Business Spotlight, Inc. and Committee Member of Emerging 30

    The William E. Hesch Law Firm, headquartered in Cincinnati, OH, is owned and operated by Bill Hesch, Owner/CEO. His company, founded in 1993, focuses on providing great legal, tax & financial advice (licensed attorney, CPA & Personal Financial Specialist [PFS]) for business owners and high net worth individuals (Estate, Elder Law & Medicaid Planning). Website: www.heschlaw.com
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  • Affordable Care Act Changes

    Under the Affordable Care Act, there are new reporting requirements for the employer to report the cost of coverage under an employer-sponsored group health plan. For years after 2011, employers generally are required to report the cost of health benefits provided on the Form W-2. All employers that provide “applicable employer-sponsored coverage” under a group health plan are subject to the reporting requirement.
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  • Top 5 Problems with your Estate Plan

    Top 5 problems that arise when you leave money to your family upon your death and the unexpected consequences that would cause you to roll over in your grave

    1. Heirs recklessly spend their inheritance: Failure to leave your estate to your heirs in a trust means that your family “wins the lottery” upon your death. Your spouse and/or children may recklessly spend their inheritance within months or years, which is what most lottery winners do. A trust can control what distributions are made to your surviving spouse and/or children after your death and also delay the distributions over a number of years.
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  • 2012 Expiring Tax Incentives

    Tax | Estate Law Planning – Articles

    2012 Expiring Incentives

    2012 began with great uncertainty over federal tax policy and now, with the end of the year approaching, that uncertainty appears to be far from any long-term resolution. A host of reduced tax rates, credits, deductions, and other incentives (collectively called the “Bush-era” tax cuts) are scheduled to expire after December 31, 2012. To further complicate planning, over 50 tax extenders are up for renewal, either having expired at the end of 2011 or scheduled to expire after 2012. At the same time, the federal government will be under sequestration, which imposes across-the-board spending cuts after 2012. The combination of all these events has many referring to 2013 as “Taxmeggedon.”
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  • Ohio is Cracking Down on Unpaid Use Tax

    Unpaid Use Tax

    The State of Ohio is aggressively looking for businesses that may owe Ohio Use taxes. In addition to pursing out-of -state businesses who should be collecting and remitting Use Tax to the State of Ohio, the Department of Taxation is now looking for Ohio businesses that may not have paid use tax on purchases of property used in Ohio.

    Use Tax is a tax on the storage, use or other consumption of tangible personal property in Ohio. The tax is a compliment to the Ohio Sales Tax. In general if you have paid Ohio Sales Tax on a purchase you would not owe Use Tax on the purchase.
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  • Why Trusts Aren’t Just for the Rich

    Trust fund babies aren’t just born to millionaires and billionaires. They’re also sons and daughter of everyday people with a solid financial plan.
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  • Aging Parents, Children Avoiding Critical Talk About Money

    Holidays can present ideal opportunity to jumpstart financial conversations.

    Only a quarter of U.S. adults with children talk regularly with their own parents about financial matters according to a recent survey conducted by Harris Interactive for the American Institute of CPAs. Thirteen percent never have the conversation and 45 percent talk about finances only annually or less often.
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  • Delaying Funding Of Pension Contributions Will Save Taxes

    On January 1, 2011 nearly all of the Bush era tax cuts will expire. Thus taxes will automatically increase in 2011 without any action being required by congress. All of the marginal tax rates will be increased, with the highest income tax bracket going from being taxed at a marginal rate of 35% to a rate of 39.6%.

    Knowing this, there are significant planning opportunities to save taxes by deferring certain deductions which could be taken in 2010 into 2011. One major deduction which can be shifted into future years is the deduction for pension contributions.
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  • Tax Relief Act – Cincinnati Tax Planning Tips

    Congress has approved and the President quickly signed a multi-billion dollar tax cut package, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) (H.R. 4853). The new law follows through on the framework agreed to on December 6 by President Obama and GOP leaders in Congress. The 2010 Tax Relief Act extends the Bush-era individual and capital gains/ dividend tax cuts for all taxpayers for two years.
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