August, 2012

Vital Business Solutions Newsletter
Affordable Care Act - Small Business Benefits and Responsibilities

What's in it For You and do You Qualify?

With the Affordable Care Act, qualified small businesses and non-profit organizations can claim tax credits to offset the cost of health insurance. The  amount a business can claim depends on certain criteria, including the number of employees and the amount of salary paid:
  • Tax Years 2010-2013, employers with up to 25 employees and provide health insurance may qualify for a tax credit of up to 35% (up to 25% for non-profits).  
  • Beginning with Tax Year 2014, employers with up to 25 employees and provide health insurance may qualify for a tax credit of up to 50% (35% for non-profits).
  • Employers pay average annual wages below $50,000. 

To calculate if you qualify for this tax credit, click on this link: three simple steps created by the IRS.  


For important information and resources, please visit the website and read the Small Businesses and the Affordable Care Act fact sheet.  

How to Claim the Tax Credit

If you think your business might qualify for this benefit, there are steps to take to claim the credit:
  1. Confirm that you are eligible to claim the credit
    1. Take into consideration the number of employees; the average salary you pay to each employee -- you should be paying average annual wages below $50,000; and the size of your business or charity.
  2. Claim the credit
    1. Claim the credit on your annual income tax return. Use Form 8941 to calculate the credit.
    2. Tax-exempt employers are required to include information from Form 990-T 
    3. Read this Questions and Answers sheet for more information on how to claim the credit. 
Start planning now to claim your tax credit in the next tax year. Consult with the appropriate professional or your local IRS office for guidance.

Additional Resources

Important Dates to Remember 

September 30th, federal contractors will be required to file VETS-100 Form
September 30th for the current year, employers who are federal contractors with 50 or more employees will be required to file EEO-1 report.
Effective October 1, 2012, Maryland law will prohibit employers from asking employees and job applicants for their user name and password to access social media personal accounts.
On the Radar 
If the Maryland's Same-Sex Marriage Law is upheld, employers must be prepared to update benefits policies and plan documents to be in compliance with the new law regarding coverage for dependents.  The law will be effective January 1, 2013 unless it is repealed in November.

Happy Client!


We have been working with Vital Business Solutions for four years.  Our experience with VBS and Henrietta Smith can be summed up in one word - Vital!  When we brought VBS on as our HR advisors, we had just doubled in size from 5 employees to 10.  While that does not seem like such a big deal, this transition presented many unexpected challenges.  We are now at 30 employees and we still rely heavily upon the counsel of VBS.  They are not only responsive and reliable but always available to assist with our last minute and often untimely inquiries.  VBS has been instrumental in helping us establish policies and procedures, streamlining our on-boarding process, and establishing our process of documenting employee performance.  We have not made a critical move in our HR department without the wise counsel of VBS.  They are a Vital part of our team.


Lisa D. Anderson

DeAnder Associates L.L.C.  

Hennrietta Smith, President
Vital Business Solutions, Inc.


The information provided in this newsletter is for awareness only and not intended as legal or tax advice. Please consult with your legal counsel and/or tax or payroll professional on legal and tax matters.
Vital Business Solutions is an one-stop shop human resource and organizational development company that provides simplistic systems to your complex business needs. Our goal is to provide solutions to your human resource and organizational development challenges.
                                  2012 Vital Business Solutions

Is your Employee Handbook updated for 2012?

We can help you 
with your 
Policies & Procedures Manuals

VBS can update your Employee Handbook and HR forms.  An Employee Handbook identifies management's objectives, outlines company rules and regulations, and identifies the company's expectations.  

Let us know if you need the following documents:
    Employee Handbook
    Policies & Procedures Manual
    Human Resources Forms

    Job Descriptions

    HR Audit/Assessment


Get everyone on the same page!