July 2012  Tax Tips from Smith, Sullivan & Company P.C.
 
 

You May Be Eligible for the  

Small Business Health Care Tax Credit!

 
A tax credit is available to certain small employers that provide health care coverage to their employees, effective with tax years beginning in 2010.  The credit is available for the years 2010 through 2013, with an enhanced version effective beginning in 2014.  

 

In order to be a qualified employer*:
  1. The employer must have fewer than 25 full-time equivalent employees ("FTE's") for the tax year (last calendar year) 
  2. The average annual wages of the employees for the calendar year must be less than $50,000 per FTE, and 
  3. An employer pays at least 50% of the premium for each employee   
*(Generally-other limitations may apply)

The credit is calculated based upon the employee's FICA wages for the calendar year (without regard to an organization's fiscal year) and will be filed on Form 990-T to request a refund of the credit amount. 

 

We understand the intricacies of the calculation of the credit and are here to help! 


If you think that your organization may be eligible for this tax credit, and would like Smith, Sullivan & Company, P.C. to assist or prepare the calculation of this credit, please contact us. 
 
 
Linda Smith and
Maureen Sullivan
Questions?  Call us at 508.871.7178

or email: contact@smithsullivancpa.com 

or go to:  www.smithsullivancpa.com   

  

  

 

  

 

 

At Smith, Sullivan & Company, PC, our dedicated professionals listen to your auditing and accounting, tax preparation, and small business questions. We provide personalized solutions to you and your family, your business or nonprofit, all at a reasonable price.

 

Our accounting team has extensive experience. We understand your frustration when you tell us that you've paid top dollar for accounting services - only to learn that there's a junior-level person working on your engagement. Or, that it's mid-March and your accountant isn't returning emails or phone calls because your files have been put on the back burner so that they can focus on the tax return crunch. At Smith, Sullivan & Company, PC we only send senior-level accountants into the field and they remain accessible to you throughout the year. A dedicated team is assigned year-round specifically to our nonprofit clients, so that deadlines are met on time and your questions are never ignored.

 

Established in 1993, Smith, Sullivan & Company, PC is for you if you value communication, one-on-one attention, and "hands-on" expertise from experienced senior-level accountants. Whether you have a project to bid on now, or in the near future, contact us to schedule an introductory meeting, we'd love to meet you!   

 

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To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication and any attachments is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing or recommending to another party any transaction or matter addressed herein.