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Shultz Huber & Associates "Business Brief" 
Quick Hit News to Know 
December 27, 2011 -
We have a few important end-of-year reminders for your consideration.  Following is information related to the payroll tax cut extension, Ohio Unemployment early payment notices, and the Ohio small business investment credit; InvestOhio.

As always, you are our mission.  Please contact us for help with your mission.
Payroll Tax Cut Extended
   
Congress passed on December 23 the Temporary Payroll Tax Cut Continuation Act of 2011.  This extends the 4.2% withholding rate for employees through February 29, 2012.  The Social Security rate will then return to 6.2% for workers. 

Under the terms negotiated by Congress, the law also includes a new "recapture" provision, which applies only to those employees who receive more than $18,350 in wages during the 2-month extension period. 

Click here for a link to the official IRS release regarding this news.
Ohio Unemployment Notices
   
In early December the Ohio Department of Job and Family Services Office of Unemployment Compensation sent out 2012 contribution rates to employers.  These rates included an option for an early payment discount.  The payment must be made by December 31 to qualify for the discount. 

Many of our clients ask us to calculate the benefit to them of making the early payment, answering the question, "Is it worth it?"  If you have not determined the impact of making the decision for your business, contact us for help.

Click here for a link to the Ohio Office of Unemployment Compensation notice on 2012 contribution rates.
InvestOhio- The race for investment and tax credit has begun!

We informed clients in a previous newsletter that the state of Ohio included in its budget a personal tax credit to investors who acquire ownership in an Ohio business.  The credit is awarded on a first-come-first-served basis. There are several stipulations for the investor and the business receiving the funds, including a registration with the Ohio Business Gateway. 

The registration period began at 8 a.m. on November 14, 2011. 

Did anyone miss the shotgun start?  Anyhow, the investors that meet the criteria, and wait the two year holding period, will be eligible to take a 10% credit for their investment on their personal return.  For investments made in calendar 2011, the 10% credit (maximum $100,000 credit for $1 million investment) would be taken on the 2013 tax return.

What are the most appealing aspects of the credit for our clients? 
  • It is available to individuals, estates, trusts, and pass-through entities (like Partnerships or S-Corporations).  
  • The investment must be in cash but there is not a limitation on the source of cash (may be borrowed or gifted).
  • Owners of S-Corporations investing additional money into their own company can qualify for the credit if they meet other criteria. 

For all the details on this credit click here or contact us.

Fine Print:

Pursuant to Circular 230 promulgated by the Internal Revenue Service, if this communication or any attachment hereto, contains advice concerning any federal tax issue or submission, please be advised that it is not intended or written to be used, and that it cannot be used, for the purpose of avoiding federal tax penalties, unless otherwise expressly indicated.