Do you use a PEO and own a business? You may be eligible for a refund!

What’s a PEO?

A PEO is a professional employer organization that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training and development.

What changed?

The  late 2017 amendment to Ohio law makes wages, paid by a PEO to an owner of a pass-through entity, eligible for the small business income deduction.  Previously, only wages paid by the business itself to the owner were eligible for the deduction.  The change in law allows PEO wages to be eligible and retroactively affects any tax year from January 2013 forward.

Who is eligible for this refund?

To receive this tax refund, you must be at least a 20% owner of a pass-through entity (LLC, S-Corp, Partnership) utilizing a PEO.

How can I get a refund? 

The OH small business income deduction is subject to a cap that may have already been utilized in the original tax filing.  Give us a call at 513-523-1100 to see if an amended return would result in a refund.