Did You Know That It’s National Small Business Week?
May 29th, 2010 | 
Author: I recently hopped on the IRS website and learned it’s National Small Business Week. After recently being chided by a family member for missing his birthday, I don’t want to be caught short again. HAPPY NATIONAL SMALL BUSINESS WEEK!
Since no one has sent me a greeting card on this one (and I own two small businesses) maybe it’s not a new alliance between the IRS and Hallmark. So what gives?
Methinks the new improved friendlier IRS has some marketing savvy afoot. Since, the nation’s chief tax enforcer has requested and is slated to receive funds for a 17% manpower increase (up to 16,500 new employees,) my sense is this “holiday week” is to remind us of tax goodies – and more potential “gotchas” for this new army of tax police. But cynicism aside, there are some great new tax credits if you hire more people and/or provide health insurance.
A tax credit is a direct dollar for dollar offset of your tax bill. If your CPA says you owe $10,000 in taxes, but you are eligible for $4000 in credits, you make the check out to the IRS for only $6000. It’s more valuable than a tax deduction.
If you’re planning to hire new people, or subsidize employee health insurance, there are some excellent tax breaks available now. I know this is bit long for a blog post, but for some it may be easier than checking it out on the IRS website at: www.irs.gov/businesses/small/index.html.
New 35% Health Care Tax Credit for Providing Health Insurance
Small employers who offer health insurance coverage for the first time or maintain coverage they already have get this credit in 2010 if they pay at least half the cost of single coverage for their employees. The credit maxes out at 35%.
For some, the key here will be getting the right “average wages” number.
Because the eligibility rules are based in part on the number of FTEs, not the number of employees, businesses that use part-time help may qualify even if they employ more than 25 people.
Two New Benefits for Employers that Hire and Retain Recently Unemployed
If your business hires workers after Feb. 3, 2010, and before Jan. 1, 2011, who were previously unemployed, you may qualify for a 6.2-percent payroll tax incentive. This basically wipes out the employer share of social security taxes on those wages. If the new hire stays on for a year without a decrease in wages you can also get up to $1,000 new hire retention credit as well.
Here is some of the “fine print” on this one:
Tax Credit for Hiring “Hard to Hire” Unemployed Workers
If you hire “certain” ex-felons, welfare recipients, veterans, and minority youth, between the ages of 18-39, you can claim credits. Although the labeling may seem offensive, the tax savings are real. The credit is available for small businesses in 43 states and Washington D.C., if you get the needed “certification” and file with the state workforce agency within 28 days after the eligible worker begins work.
There are special rules about what credits can be taken together – so make sure your business maxes out your entitlements.
Posted in 
Tags:
What I dont understand is how youre not even more popular than you are now. Youre just so intelligent. You know so much about this subject, made me think about it from so many different angles. Its like people arent interested unless it has something to do with Lady Gaga! Your stuffs great. Keep it up!:)