Beauty Link - Volume 3, Issue 1 - (Page 44)
| b e a u t y s c h o o l s 101 |
CONTRIBUTE TO YOUR EMPLOYEES’ HEALTH INSUR ANCE: GET CREDIT
Laur ie K am inski, C lient Rel a ti o n s h i p Ma n a g er , T A G Em p l o y er S er vi c es
Are you a small business or tax-exempt organization that pays at least half the cost of single health insurance coverage for your employees? If so, you may qualify for a new tax credit. The new small business health care tax credit is effective now as part of the Affordable Care Act, which became law last year.
Who’s eligible for the credit?
The credit is targeted to help employers with low and moderate income workers afford to offer employees health insurance coverage. Generally, employers that have fewer than 25 full-time equivalent (FTE) employees and pay wages averaging less than $50,000 per employee per year may qualify for the credit. Because the eligibility formula is based in part on the number of FTEs, not the number of employees, employers that have more than 25 individual workers may also qualify if some of their workers are part-time.
How much is the tax credit?
For each year from 2010 through 2013, the maximum credit is 35 percent of premiums paid by eligible small businesses and 25 percent of premiums paid by eligible tax-exempt organizations. An enhanced version of the credit will be effective beginning in 2014.
How and when can I claim the credit?
Small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they ﬁle in 2011. Tax-exempt employers can expect additional information in the coming months on how to claim the credit. TAG Employer Services started in early 2000 in Phoenix, Arizona, as a one-stop common-sense solution for payroll and administrative services. Our leadership team has been processing payrolls for companies since 1971. But that’s not all we do. TAG offers a multitude of services and solutions from payroll to beneﬁts and more.
PAYROLL TAX CUT TO BOOST TAKEHOME PAY FOR MOST WORKERS New Withholding Details Now Available on www.IRS.gov
The Internal Revenue Service has released instructions to help employers implement the 2011 cut in payroll taxes, along with new income-tax withholding tables that employers will use during 2011. Millions of workers will see their take-home pay rise during 2011 because the tax relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduced Social Security withholding will have no effect on the employee’s future Social Security beneﬁts. The new law also maintains the income-tax rates that have been in effect in recent years. For any Social Security tax over withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2011. Employers and payroll companies will handle the withholding changes, so workers typically won’t need to take any additional action, such as ﬁlling out a new W-4 withholding form. As always, however, the IRS urges workers to review their withholding every year and, if necessary, ﬁll out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms. Publication 919, How Do I Adjust My Tax Withholding?, provides more information to workers on making changes to their tax withholding. Source: www.IRW.gov.
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Table of Contents for the Digital Edition of Beauty Link - Volume 3, Issue 1
Beauty Link - Volume 3, Issue 1
Message from the AACS President & CEA Chair
Workings of Washington
Meet Your New President
Beauty Changes Lives
Striving for Balance: Feng Shui’s Influence on the Salon and Customer
AACS Listserve Q & A
Beautifully Gray: The Dos and Don’ts of Aging Hair
Fair and Accurate: Tips for Improving Accuracy in News Stories
Voices from the Classroom
10 Steps to a More Fulfilling Life After 40
Damaged: The Top 12 Explanations for Damaged Hair
Beauty Schools 101
Creative Solutions: Seven Ideas to Help Leverage Perspectives
Upcoming 2011 Events
People & Places
New Products & Services
New School Members
Associate Member Profiles
Index to Advertisers
Beauty Link - Volume 3, Issue 1
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