There have been several important changes to tax law recently which may
provide tax savings and incentives for your business. For your convenience, we have summarized the
major points of these new laws. This is
intended as a brief summary, additional
rules and limitations may apply. If you
think your business qualifies for any of these credits, please contact your
HB&K accountant to help you determine your eligibility. Please visit our website for a simple, interactive
calculator you can use to estimate your healthcare tax credit.
Small Business Health Care Tax
Credit
25 or fewer full-time
employee equivalents. Average wages of no
more than $50,000. Employer covers at
least half the cost of employee health insurance premiums based on single
rate. The amount of the
credit varies depending on employer's tax status, number of employees and
average wage paid, but the maximum credit is 35%. Visit our website to download the "3
Simple Steps" IRS Worksheet which
contains useful information on how to calculate full-time employee
equivalents and annual average wages.
Payroll Tax Exemption
Applies to any
employer, other than the Federal government, regardless of size. Exempts employer from
their share of the 6.2% social security tax from March 19, 2010 through
December 31, 2010 for qualified employees. "Qualified employee"
is defined as an employee hired between February 3, 2010 and December 31,
2010 who has been either unemployed or employed for less than 40 hours in
the 60 days prior to employment. Form W-11 is needed to
certify qualified employees - this form can be found on our website.
Retention Credit
Credit of 6.2% of
wages paid to qualified employee, up to $1000 per employee. Qualified employee
must be retained for 52 consecutive weeks for employer to qualify.
We hope this information is useful to you. In the future, we hope to update our clients quickly using an email alert system.
Please register on our website to receive important updates in a timely manner.
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