Author: admin-hsc

Posted on May 12, 2023

Savings and Investing: The HSC Financial Literacy Series Part 3

Posted on May 12, 2023

Financial Literacy is all about understanding financial tools and building a healthy relationship with money. In this series, Senior Executive Consultant John Key reviews relevant topics to help you make your money work for you.

What is the difference between saving and investing? What do I need to do now to make sure I can meet my goals in the future? In today’s video, John Key walks through these questions and other things you need to know about saving and investing your money.

John Key joined Harding, Shymanski & Company in 2023 as the Senior Executive Consultant in our Advisory Services Department after retiring from his position as Director of Strategic Initiatives at Stock Yards Bank & Trust Company. Before joining Stock Yards through a merger with Commonwealth Bank & Trust, John was President & CEO. He spent 40 years in the banking industry.

John received his Bachelor of Science degree from the University of Southern Indiana. He is a graduate of the School of Banking, University of Wisconsin, ABA Commercial Lending School; and the IBA Commercial Lending School and holds many other professional certifications. In addition to being involved with the “March for Babies”, John has been associated with the Boy Scouts of America, the American Heart Association, the United Way, the Memorial Cancer Center, and many other philanthropic organizations throughout his career. John is also a past Board member of the Indiana and Kentucky Bankers Associations.

Credit and Borrowing: The HSC Financial Literacy Series Part 2

Posted on May 5, 2023

Financial Literacy is all about understanding financial tools and building a healthy relationship with money. In this series, Senior Executive Consultant John Key reviews relevant topics to help you make your money work for you.

Today, we answer some top questions about using credit and borrowing money.

Earnings, Spending, & Budgeting: The HSC Financial Literacy Series Part 1

Posted on April 28, 2023

Financial Literacy is all about understanding financial tools and building a healthy relationship with money. In this series, Senior Executive Consultant John Key reviews relevant topics to help you make your money work for you.

Where should you start? Let’s talk about earnings, spending, and creating a budget.

John Key joined Harding, Shymanski & Company in 2023 as the Senior Executive Consultant in our Advisory Services Department after retiring from his position as Director of Strategic Initiatives at Stock Yards Bank & Trust Company. Before joining Stock Yards through a merger with Commonwealth Bank & Trust, John was President & CEO. He spent 40 years in the banking industry.

John received his Bachelor of Science degree from the University of Southern Indiana. He is a graduate of the School of Banking, University of Wisconsin, ABA Commercial Lending School; and the IBA Commercial Lending School and holds many other professional certifications. In addition to being involved with the “March for Babies”, John has been associated with the Boy Scouts of America, the American Heart Association, the United Way, the Memorial Cancer Center, and many other philanthropic organizations throughout his career. John is also a past Board member of the Indiana and Kentucky Bankers Associations.

UPDATED 4.12.23 What You Need to Know about SECURE 2.0

Posted on April 12, 2023

The SECURE 2.0 Act was signed into law at the end of 2022. It delivers dozens of new retirement-related provisions. These changes build on the SECURE Act of 2019, which altered the rules of how you can save and withdraw money from your retirement accounts. Learn more about these changes through the following resources.

Do you have questions? We’re here to help! Call to speak to an expert, at 1-800-880-7800.

SECURE 2.0: Considerations to achieve your workforce and business goals

SECURE 2.0’s new tool for helping employees with student loans

What does SECURE 2.0 Mean for Small Employers?

Key Takeaways for Employers under the SECURE 2.0 Act of 2022

Required Minimum Distributions after SECURE 2.0

Retirement Plan Changes for Long-Term, Part-time Employees

Key Provisions of the SECURE 2.0 Act for Individuals

We are proud to have been chosen as a member of RSM US Alliance. RSM US Alliance provides member firms access to the resources, tools and expertise of RSM US LLP, the leading U.S. provider of audit, tax and consulting services focused on the middle market, with more than 9,000 professionals in 86 offices nationwide. In addition, RSM US Alliance members have access to resources through RSM International, the sixth largest worldwide network of independent audit, tax and consulting firms, with more than 38,000 professionals in over 120 countries.

Kentucky Enacts Personal Income Tax Rate Reduction

Posted on March 16, 2023

The Kentucky personal income tax reductions are a continuation of a two-to-three-year trend across the country. Since 2020, about two dozen states have reduced personal and/or corporate income tax rates as well as providing reductions or relief from many other state taxes. Such reductions obviously affect in-state residents but can also have a significant impact on out-of-state residents and businesses. 

Not all the proposals to reduce income taxes currently considered in the legislatures will be enacted, but many states are projected to continue healthy fiscal conditions into FY24. It is anticipated tax cut activity will continue, albeit on a smaller scale. The outcomes may affect business location decisions, pass-through entity liabilities, remote work considerations and general state tax planning.

Read the full article and view other tax cut proposals here.

Top 10 Tax Filing Mistakes

Posted on February 27, 2023

Avoid making these 10 common mistakes when filing your taxes to save you time, money, and stress.

About the expert:

Sally Campbell is a Vice President currently serving both in the Tax Department and as Senior Operations Manager. She joined the firm in 1997 and has 20 years of experience in public accounting. Sally has expertise in tax, specifically for individuals, estates, and trusts.

Sally earned her Bachelor of Science degree in accounting from the University of Louisville, graduating cum laude. She is a member of the American Institute of Certified Public Accountants and the Kentucky Society of Certified Public Accountants. In 2022, she was named one of Louisville Business First’s 20 People to Know in Accounting. Sally taught Accounting for 7 years in the Northern Kentucky/Cincinnati area, at Thomas More College and at the College of Mt. St. Joseph. She started her career with the Internal Revenue Service, as a college intern and then as a Revenue Agent.

UPDATE: Indiana Senate Bill 2: Taxation of Pass-Through Entities Signed by Governor Holcomb

Posted on February 23, 2023

As you may have seen, the Indiana Senate Bill 2: Taxation of Pass-Through Entities (SB2) has been signed into law by Governor Holcomb.

This bill provides pass-through entities (PTEs) an election to pay Indiana income tax at the entity level, based upon an individual owner’s share of income. The election creates a tax credit for the individuals/owner(s) which offsets the individual’s personal income tax liability. The savings opportunity is this can maximize your state tax deduction for Federal purposes and reduce your Federal taxable income.

Additional information

  • The Indiana Pass-Through Entity Tax rate is the individual rate of 3.23%. It does not include county taxes.
  • The election will be made via a hardcopy form mailed directly to the Department. In the initial year, the election will not be available to be filed electronically. This is expected to change for 2023.
  • The deduction for state taxes paid will be deducted from federal ordinary income in the year the taxes are paid (2023 in most cases).
  • Because of the retroactive nature of the bill, the 2022 election must be made after March 31, 2023, and before August 31, 2024.

We are monitoring the Indiana Department of Revenue’s readiness to accept the election and produce the forms to accommodate the new tax as well as the readiness of the tax software providers to implement the change. This means clients who benefit from this election will need to file extensions. 

If you have any questions or concerns, please do not hesitate to contact your HSC service leader or call our office at 800.880.7800.


Indiana 529 Plan Updates:

Posted on February 17, 2023

Indiana taxpayers may receive a state income tax credit equal to 20% of their contributions to a CollegeChoice 529 account, up to $1,000 per year ($500 for married filing separately) through December 31, 2022. Contributions by Indiana taxpayers made on or after January 1, 2023, will qualify for the 20% tax credit, with a new maximum of up to $1,500 ($750 for married filing separately).

Find more information here.

Indiana Senate Bill 2: Taxation of Pass-Through Entities

Posted on February 15, 2023

We are monitoring a bill currently being fast tracked through the Indiana Senate that may provide a tax savings opportunity for 2022 taxes, so we want to ensure you are aware of it and know that we are addressing it.

Senate Bill 2: Taxation of Pass-Through Entities (SB2) is a highly supported and fast-moving bill that aims to allow pass-through entities (PTEs) an election to pay Indiana income tax at the entity level, based upon an individual owner’s share of income. The election creates a tax credit for the individuals/owner(s) which offsets the individual’s personal income tax liability. The savings opportunity is this can maximize your state tax deduction for Federal purposes and reduce your Federal taxable income.

What does that mean for you? The bill, if successful, would not become effective until mid-February 2023. However, the legislature intends for the credit to be retroactively available. For a small group of taxpayers this may affect your 2022 tax return. 

We expect this bill to pass. Because of the retroactive nature of the bill, the 2022 election cannot be made until March 31, 2023. The federal filing deadline for pass-through entities is March 15, 2023. That means those clients who may benefit from the election on their 2022 tax return should consider filing extensions. Some taxpayers will not benefit on their 2022 tax return but will benefit on 2023 taxes.

What are we doing to advise? We are currently working on personalized recommendations for our clients. We will weigh the advantages and disadvantages associated with making this election and if the tax savings is realized on the 2022 tax return or the 2023 tax return. Personalized evaluations take into consideration each client’s unique circumstances.

If you have any questions or concerns, please do not hesitate to contact your HSC service leader at 800-880-7800.

Additional Services Subject to Kentucky Sales & Use Tax

Posted on February 15, 2023

Beginning January 1, 2023, several additional services are now subject to Kentucky sales and use tax. Businesses that offer these services to Kentucky-based customers must now collect the 6% sales tax on their invoices.  

Businesses located outside of Kentucky but providing these services to customers located in Kentucky may also be required to collect sales tax under the state’s economic nexus statute.

Additionally, taxpayers receiving the benefit of these services in Kentucky are subject to a 6% use tax liability should the vendor not collect the sales tax on the invoice.

A $6,000 de minimis threshold found in KRS 139.470(23) applies to otherwise taxable services. Any provider of these new taxable services that exceeds $6,000 in gross receipts in 2021 or 2022 must be registered for the collection of the sales and use tax beginning on January 1, 2023.

Businesses can register for an account to remit tax to the Kentucky Department of Revenue here.

A complete list of the services now subject to sales/use tax is provided below. The Kentucky Department of Revenue has issued additional informal guidance on a number of these new services. Click on the links in the list for additional information.

An overview of the new services subject to tax, including other provisions in the new law, can be found here.

Additionally, the Department of Revenue is maintaining a website with frequently asked questions here.

Newly Taxable Services per KRS 139.200, effective January 1, 2023:

Please contact John Rittichier, CPA at 502.882.8484 or jrittichier@hsccpa.com or Aaron Wilzbacher, CPA at 812.491.1322 or awilzbacher@hsccpa.com with questions regarding these new provisions.