Tax Cuts For Small Business Owners

business (6)As a small business owner is always nice for you and your wallet to hear that you won’t be paying as much in income tax for 2013 as you did the previous year.  Under the measured passed by the Ohio Legislature last year, small business owners can deduct half of their business income up to $250,000 this year.  That is significant if you considered the amount saved in taxes can be used to invest in the business, or buy machinery that needed to be replaced.

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Small Businesses Sort Out Affordable Care Act Details

Small businesses around Ohio are struggling to sort out the details of the Affordable Care Act.

As Lewis Wallace reports from Ohio Public Radio  station WYSO, it’s unclear whether recent delays in the law help or hurt the confusion.

The big Obamacare question for small employers is this: am I required to provide health insurance to my employees or not?

Paul: And that question is sort of like that underwear commercial: boxers, briefs, depends…

That’s Paul Tambe with BW Employee Benefits speaking to Dayton-area small business owners.

And yes, it does depend. Here’s the basic rule: companies with less than 50 full-time employees are exempt.

Companies with 50 or more—need to provide health coverage for their full-timers or pay fines.

Medina residents explain what they want to hear from Governor Kasich at State of State speech

MEDINA, Ohio – Business owner Amy Douglass came up with a quick list of topics that she hopes Governor John Kasich addresses during his State of the State address Monday night at the Performing Arts Center in Medina.

Douglass, who owns The Interior Design Studio and JK Gift Shop, said she would like Kasich to create a statewide initiative to encourage people to shop at local stores.

“It’s very difficult competing against the big box stores, number one, and there are so many small businesses in small towns around Ohio,” Douglass said.

Another concern she would like discussed is the high cost of healthcare, something she has never been able to provide in 13 years as a small business owner.

Douglass only has four employees and they depend on their husbands for health benefits.

“We just can’t afford to offer it and it’s very important to be able to offer something like that to families.”

Why small businesses won’t pay Ohio’s tax collectors as much this year

With tax season in full swing, small businesses will receive a significant tax cut for income they earned in 2013 under a measure passed by the Ohio Legislature last year.

Those who file their business income on their individual income tax form – a vast majority of Ohio businesses – can deduct half of their business income up to $250,000.

That means if a business owner earns $250,000 in adjusted gross income, he or she can exclude the first $125,000 from their tax return. The exclusion is available to each investor or owner in a business, said Ohio Tax Commissioner Joe Testa.

The cut, a part of Gov. John Kasich’s effort to slice income tax rates, is expected to be worth $1.6 billion to Ohio small businesses.

“It’s pretty significant,” Testa said. “This gives them the opportunity to have more revenue they can put back into their businesses, to grow their businesses by purchasing additional equipment or marketing their products or maybe even adding a full-time person when they only had a part-time person.”

Small business owners earning income at the top marginal tax rate – 5.33 percent – could expect to see a $6,000 benefit, said Ohio Development Services Director David Goodman.