H.B. 110 Gives 雇主, Municipalities More Time To Address The New Flexible Work Environment
When Ohio Governor Mike DeWine ended the COVID-19 state of emergency on June 18, the countdown started toward the end of the oft-discussed municipal income taxation protections as it related to H第29条ouse Bill 197. H第29条.B. 197 allowed employers to continue to withhold at an employee’s principal place of work, even though they may be working at their residence or elsewhere as a result of COVID-19 pandemic precautions. H第29条.B. 197 stated that this protection for employers was to end 30 days after the state of emergency declaration was lifted. Therefore, without any further legislation, the protection was slated to end on July 18, 2021. 然而，对于Gov. DeWine signing Ohio’s biennial budget into law with H.B. 110，第757条.40 of the budget remediates the obscureness around the intent of H第29条ouse Bill 197 and would appear to be at least a partial win for all parties affected, 包括雇主, 员工, and Ohio’s larger municipalities, who rely heavily on income taxation to meet their budgetary needs.
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什么H.B. 110 Means To 雇主
From the perspective of employers, the H.B. 110 protects the original intent or H.B. 197, which was to protect the employer from being assessed tax, 处罚, or interest by any other municipal corporation for net profit tax or municipal income tax withholding purposes for 员工 working elsewhere as a result of the COVID-19 pandemic. This is, however, as long as the employer withheld wages to an employee’s principal place of work. Additionally, the bill extends these protections until Dec. 31, 2021. 这意味着, if you haven’t already arrived at a decision regarding how your organization will address the remote work issue, 你还有时间. Just don’t let these conversations stall. Your goal is to have a plan in place regarding remote work prior to Jan. 1, 2022, to avoid any unforeseen withholding and municipal net profit tax liabilities.
How 员工 Will Benefit From H.B. 110
好消息是: H.B. 110, provides some answers regarding whether qualified 员工 can claim a tax refund if they issued overpayment in their municipality of residence.
坏消息是: H.B. 110 only addresses the 2021 tax year.
这意味着 we still don’t have an answer regarding whether 员工 can claim a tax refund if an overpayment was made to their municipality of residence in 2020. Or, to be more specific, from March 9, 2020, when the state of emergency was declared, to Dec. 31, 2020. 此时此刻, it is up to the courts to decide whether a refund can be issued to qualified 员工 who paid taxes to a municipality where they neither lived nor physically performed services for the 2020 tax year.
Additionally, with respect to any refund request made by an employee pursuant to H.B. 197, a municipal tax administrator may not require documentation from an employer other than a statement verifying the number of days the employee worked at the employer’s physical location during the taxable year as well as verification that the employer did not refund any taxes withheld to the employee.
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Where Will Future Funding Come From?
扣除2020, 此时此刻, Ohio’s larger municipalities appear to have bought some time when it comes to solving the problem of replacing at least a portion of their tax base as many employers are expected to allow increased flexibility going forward with regard to their employee’s work situation. Depending on your business, flexibility may look like allowing permanent work-from-home arrangements or simply allowing 员工 to work from home on an as-needed basis.
By Lamarcus Crowders (都柏林 CPA 公司)
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