Recent Posts to CPA Care
Custom Web Reporting Can Help You Determine Eligible Tax Credits!
Small Business Health Care Tax Credit
This credit helps small businesses and small tax-exempt organizations afford the cost of covering their employees’ health insurance. To be eligible for the credit the company must:
- Cover at least 50 percent of the cost of single (not family) health care coverage for each of employee
- Have fewer than 25 full-time equivalent employees
- The employees must have average wages of less than $50,000 a year
To determine if the company qualifies for the maximum credit of 35 percent for small business employers and 25 percent for small tax-exempt employers, you can pull a quick excel report with this data in Custom Web Reporting.
New Hire Retention Credit
The HIRE retention credit is a general business credit to encourage retention of new hires from February 3, 2010 and before January 1, 2011. To be eligible for the credit the employer:
- Must have retained the qualified employee for 52 consecutive weeks
- The qualified employees’ wages for such employment during the last 26 weeks must equal at least 80% of wages for the first 26 weeks
The amount of the credit is the lesser of $1000 or 6.2 percent of wages (as defined for income tax withholding purposes) paid by the employer to the retained qualified employee during the 52 consecutive week period. The credit is claimed in the tax year in which the first 52 consecutive week period ends. In Custom Web Reporting, you can pull a report to show hire dates with employee wages during any time period to determine employee qualification.
These are just two recent tax credits for which Custom Web Reporting helps you to determine your clients’ eligibility, think of all the other tax credits you could easily determine by using this tool!