4 State Legislative Issues For Ohio Small Business to Watch
As Ohio’s General Assembly rolls on, hundreds of bills are being filed, many of which could impact your small business’s bottom line.
“NFIB/Ohio will continue to monitor legislation that impacts small-business owners and where we can be proactive in supporting good public policy initiative that will assist our over 25,000 members in owning, operating and growing their businesses,” said Chris Ferruso, NFIB’s Ohio legislative director
Here are four in particular Ohio small business owners should watch.
1. Tax Reform.
A majority of NFIB/Ohio members are structured as pass-through entities and thus their business tax is the personal income tax.
Consequently, many members struggle to embrace a tax reform plan that reduces one tax while increasing others, Chris Ferruso, NFIB/Ohio legislative director said.
“Governor Kasich’s state operating budget contains a number of tax reform measures,” Ferruso said. “The Governor is interested in further reducing the state personal income tax which our members favor. However, with a number of tax extenders and enhancers also included, it requires further examination. We are in the process of a special member ballot on the plan as a whole.”
2. Unemployment Compensation.
When it comes to Ohio’s unemployment insurance system, the state has to focus on two areas, Patterson said: repaying the loan and creating long-term solvency.
“To avoid additional tax increases in the future, Ohio needs to repay its debt to the federal government as quickly as possible,” Ferruso said. “The solution cannot be solely born on the backs of employers. Likewise, to create long-term solvency to avoid borrowing during future economic downturns, a thorough evaluation of Ohio’s taxable wage base and benefit structure needs to be undertaken so neither employers nor claimants are saddled with a disproportionate burden.”
Ohio is one of nine remaining states that have an outstanding debt—$1.38 billion—to the federal government from borrowing during the last recession to pay legitimate unemployment compensation claims. As a result of ongoing borrowing, employers lose a portion of the federal unemployment tax (FUTA) offset credit, and thus experience a tax increase. Ohio employers pay 1.8 percent FUTA in 2014 versus 0.6 percent when not borrowing, resulting in an additional $84 per employee in extra taxes.
3. Workforce Development.
NFIB/Ohio supports the state’s current efforts to become as close as possible to a one-stop shop.
“We also support enhanced engagement of the small-business community in partnering with the education community, at all levels, to help shape curriculum and training opportunities based upon the needs of employers in their respective regions,” Ferruso said.
The state has dozens of programs spanning across multiple state agencies with no central landing place for employers and workers to go. Ongoing efforts are underway to consolidate programs, when not precluded by federal directive, for simplification and accessibility.
4. Health Insurance.
NFIB/OH members can expect six to 10 bills over the course of the two-year legislative cycle, according to Patterson.
“Ohio should not saddle small-business owners with additional mandated benefits that only add to the cost of providing insurance,” Ferrusosaid. “With all of the changes that have and continue to transpire at the federal level, Ohio should resist efforts to expand mandated health insurance coverage on the fully-insured market. The Affordable Care Act (ACA) sets standards for most plans.”
Question: What state legislative issues matter most to your small business?
