The FKCo08 Report
 


Accounting, Tax, and Firm News

June 2010
In this issue
New Small Business Health Care Bill
Tax Tips From The IRS
S Corps - Don't Be Late!
S Is For Savings
Shaun Conrad
Follow FKCo on Twitter
Upcoming Events
Other Services
Greetings!

Welcome to the latest installment of our firm's e-newsletter, "The FKCo Report."  Here you will find updates on important or newsworthy items within our firm, our clients and the world of accounting and taxation. This allows us to reach out to you, stay in touch and welcome you again to the FKCo Community.  We encourage your comments and responses. We look forward to hearing from you!

Respectfully,

Alan, Don & Everyone here at FKCo
SBHC

New Small Business Health Care Bill

As many of you already know, our legislators in Washington D.C. have been busy negotiating the health care bill for several months.  Even though there are elements of the bill that have not been finalized, many of the credits and reporting requirements have been released to the public.  Some of you have even received postcards in the mail concerning the Small Business Health Insurance Credit.

To assist you with understanding this new credit, we have added a section to our website that you can review and even plug in some figures to see if your business qualifies.

Below are a few of the highlights of this bill, but click here to be directed to our website for further information, a frequently asked questions page published by the IRS, and a credit calculator.

In general, an eligible small business employer is one who meets three criteria:
  1. The Employer must have no more than 25 full-time equivalent employees (FTEs) for the tax year.
  2. The average annual wages per employee do not exceed $50,000.
  3. The employer contributed at least 50 percent of the premiums for employee health care.
There are additional changes that will come into play over the next several years.  We will try to keep you informed of these changes as they become available, but don't hesitate to speak with your payroll company and medical insurance broker as they may be an additional resource.
 
 
Click the following links for several great resources to help you understand the new Bill.
 
 
Small Business Examples
IRS Page
Credit Calculator


Tax Tips On IRS Web Site

IRS Tax Tips

Click the image above to go directly to a video from the IRS about the Small Business Health Care Tax Credit.  You will also find several helpful videos several other Tax Tips!
late
S Corps -  Don't Be Late!!!!!!!!

If you filed an extension for your S Corp, the deadline to file on time is September 15.

For tax years beginning after 2009, the late filing penalty for an S corporation return is $195 for each month or part of a month (up to 12 months) the return is late (or does not contain the required information) multiplied by the total number of persons who were shareholders in the corporation during any part of the corporation's tax year. No penalty will be imposed if the corporation shows that the late filing was due to reasonable cause.

If tax is owed with the return, the penalty is increased. For more information, see the Instructions for Form 1120S, U.S Income Tax Return for an S Corporation.
 
Letter S
"S" Is For Savings

If you own 2% or more of an S Corporation....
 
You may be able to deduct the health insurance premiums paid by an S corporation on your behalf on page 1 of your Federal Form 1040.  If the health insurance policy is in the S corporation's name, these amounts should be reported on your Form W-2 as wages to be included in your gross income.  If the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. 


For more information click HERE.
Shaun
FKCo Welcomes Shaun Conrad

FKCo wants to welcome new hire Shaun Conrad to the team!  Shaun comes to us from Michigan, where he recently graduated from Ferris State University with a degree in both Accounting and Music Management.  Shaun is also a top-notch guitar player and luthier.  We look forward to introducing him to you.
TwitterFollow FKCo On Twitter!

FKCo is now on Twitter.  Click on the logo to follow FKCo.  With this feature, we will be able to give you timely updates and reminders on a variety of important accounting, tax, marketing and other topics.  We love sending out the newsletters, but there is nothing like a little friendly tweet to make sure you have the latest "heads up" and the info you need.


Upcoming Event

Alan, Daniel and Jen will once again head to the 2010 Summer NAMM show in June.  Alan and Daniel will speak on financial and accounting topics, while Jen will offer some insight to social media marketing.  Please check out the link for all the speaking dates and educational opportunities that will be provided at the 2010 Summer NAMM Show in Nashville, TN.
other services
FKCo Offers Many Services

Many small business owners, especially those without bookkeepers, are too busy running their day to day business to keep up with the accounting.  As a result, the books tend to be neglected, making it difficult to know how your business is doing.  This is a great time of year for us to assist you in the maintenance of your books and records.  We can help you in many different areas such as:

  • Making year end adjustments
  • Cleaning up your existing books and records
  • Converting you from a manual to a computerized accounting system
  • Monthly or quarterly bookkeeping services, such as inputting and reconciling your cash activity for you and then maintaining those files
  • Bookkeeping training
If you find that you simply do not have the time or the ability to deal with the business accounting, or if you wish your records were in better condition, please give us a call.  We can help.

860.677.9191 XT 27

Quick Links...
Thanks for being a part of our FKCo family.  It's our pleasure to provide you with the accounting, tax and financial services you need.  As always, we're here to help and look forward to hearing from you.
 
With Warm Regards,
 
Alan, Don and Everyone here at  FKCo
Join Our Mailing List