Senate passes PEO income tax fix

Written on Oct 22, 2017

The Ohio Senate passed legislation Oct. 18 allowing business owners using a professional employer organization to be eligible for the business income tax deduction adopted in the 130th General Assembly.

Senate Bill 186, clarifies existing law and came out of interested party meetings between business owners and the Ohio Department of Taxation. It is one of two bills supported by OSCPA that address the issue. Companion legislation, House Bill 334, is scheduled for a possible vote in the House Ways & Means Committee on Oct. 24.

The legislation became necessary because ODT began telling business owners that because they used a PEO, they were not eligible for the deduction unless they met certain criteria.

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