|
|
|
|
Suzanne LoBiondo, CPA
516-791-1303
 | Slobiondo@clcpasllp.com
|
|
Christopher Cheeseman, CPA
516-791-1303
 | |
|
|
| |
Dear Clients and Friends,
We hope you had an enjoyable summer. With the cool breezes starting to blow, it reminds us that the end of the year is not too far away. This is a great time to start getting your finances in order for year-end preparation.
In the meantime, this issue of "News You Can Use" brings you some tips that will benefit both your business and personal tax situations. We hope that you will find this information of value, and invite you to contact us if you have any questions or would like to discuss your specific situation.
Very truly yours,
Suzanne LoBiondo, CPA and Christopher Cheeseman, CPA
|
Small Business Health Care Tax Credit
| The
Internal Reve  nue Service has released a draft version of the form that small
businesses and tax-exempt organizations will use to calculate the small
business health care tax credit when they file income tax returns next year. Both
small businesses and tax-exempt organizations will use the form to calculate
the credit. A small business will then include the amount of the credit as part
of the general business credit on its income tax return, while tax-exempt
organizations will claim the small business health care tax credit on a revised
Form 990-T. The
small business health care tax credit was included in the Affordable Care Act
signed by the President in March and is effective this year. The credit is
designed to encourage small employers to offer health insurance coverage for
the first time or maintain coverage they already have. In
2010, the credit is generally available to small employers that contribute an
amount equivalent to at least half the cost of single coverage towards buying
health insurance for their employees. The credit is specifically targeted to
help small businesses and tax-exempt organizations that primarily employ
moderate and lower-income workers. For tax
years 2010 to 2013, the maximum credit is 35 percent of premiums paid by
eligible small business employers and 25 percent of premiums paid by eligible
employers that are tax-exempt organizations. Beginning in 2014, the maximum tax
credit will go up to 50 percent of premiums paid by eligible small business
employers and 35 percent of premiums paid by eligible, tax-exempt organizations
for two years. The
maximum credit goes to smaller employers -- those with 10 or fewer full-time
equivalent (FTE) employees -- paying annual average wages of $25,000 or less. The
credit is completely phased out for employers that have 25 FTEs or more or that
pay average wages of $50,000 per year or more. Because the eligibility rules
are based in part on the number of FTEs, and not simply the number of
employees, businesses that use part-time help may qualify even if they employ
more than 25 individuals. If you
are an employer and feel you may qualify for this credit, please contact our
office at (516) 791-1303 or via email at info@clcpasllp.com. |
|
|
|
Permanent Exemption For Clothing & Footwear Under $110
| There is a year-round exemption from
New York state sales and use taxes for clothing, footwear, and items used to
make or repair exempt clothing, costing less than $110 per item or pair.
However, the exemption is temporarily suspended from October 1, 2010, through
March 31, 2011. Beginning April 1, 2011, the exemption is reinstated for
clothing and footwear costing less than $55 per item until March 31, 2012. The
exemption will revert back to $110 on April 1, 2012. Local governments are
given the option to maintain their current exemptions or opt into the new
exemption schedule.
The exemption does not apply to
locally imposed sales and use taxes unless the county or city imposing those
taxes elected the exemption. The exemption also applies to the sales and use
taxes imposed by the state in the Metropolitan Commuter Transportation District
(MCTD), but only in those areas of the MCTD located in a county or city in the
MCTD that elects the exemption from its own local taxes.
For purposes of the exemption, the
term "clothing and footwear" is defined to mean: clothing and footwear to be worn by human beings, but
not including costumes or rented formal wear; and fabric, thread, yarn, buttons, snaps, hooks, zippers
and like items that are used or consumed to make or repair such clothing
(other than costumes or rented formal wear) and become a physical
component part of the clothing, but not including items made from pearls,
precious or semi-precious stones, jewels or metals, or imitations thereof.
|
| About C&L Tax and Accounting Services LLP |
 C&L Tax and Accounting Services LLP is a boutique CPA firm that specializes in meeting the tax and accounting needs of individuals and small businesses. Our experienced tax and accounting professionals offer clients insightful and strategic tax planning and compliance services that maximize savings year after year. C&L Tax and Accounting Services LLP's offers a wide range of tax and accounting planning, compliance and consulting services for both individuals and small businesses. We invite you to peruse our capabilities and contact us for a consultation. |
|
|
|
|
|
|
