Summit Blog
Monday, June 14, 2010
New IRS Guidance on the New Health Care Tax Credit
New IRS Guidance on the New Health Care Tax Credit
As one of the health care reform provisions of the Patient Protection and Affordable Care Act (PPACA), a tax credit is available to help offset the employer health care cost of offering employee benefits. On May 17, 2010, the IRS provided new detailed guidance that is especially helpful for small businesses. With this information, small employers can determine their tax credit qualification and the estimated credit amount.
Tax Credit Qualification
The tax credit is generally designed for small businesses (and tax-exempt organizations) with mostly lower-earning employees. In general, the credit is available to such employers that:
• Pay at least 50% of the single coverage cost for their employees in 2010.
• Employ fewer than the equivalent of having 25 full-time workers.
• Pay average annual wages below $50,000.
Note: Small employers also can get (1) state health care tax credits while qualifying for the full federal tax credit and (2) credits for regular health insurance as well as additional dental and vision coverage.
Determination Process
With a 3-step determination guide, a small business employer can determine eligibility for tax years 2010 to 2013. The maximum credit is 35% of premiums paid by eligible employers (and 25% of premiums for tax-exempt organizations).
1. Determine the Total Number of Employees (not counting owners or family members); if fewer than 25 employees, then…
2. Calculate the Average Annual Employee Wages (not counting owners or family members); if the average is less than $50,000 and the employer pays at least 50% of the insurance premiums at the employee-only coverage rate, then…
3. The employer may be able to claim the Small Business Health Care Tax Credit.
Note: While a more generous incentive becomes effective in 2014 (i.e. the maximum credit increases to 50%), further IRS guidance is anticipated over the next several weeks.
Employer Considerations
In turn, make sure you have a system in place to accurately track changes in the size of your company’s workforce. Additionally, with such tax incentives, take a closer look at whether or not providing (or continuing to provide) health care benefits would position your company as an employer of choice.
John McShane; Business Development Manager, Summit Payroll
Filed in: Product News | PermalinkMonday, June 07, 2010
General Ledger Summary Report
Before coming to work for Summit Payroll, I was a client and used the web payroll services. The feature that I liked best was the reporting capabilities included with the payroll portal. The report that really got my attention was the “General Ledger Summary Report”. This report is a beauty and one your accountant will just love!
True, there is some setup involved but there is some good news here. Summit Payroll is staffed to be able to complete the initial setup for you. All Summit Payroll needs is the current chart of accounts that your accountant uses. Once the setup is complete, the “General Ledger Summary Report” can run to be included in with your other payroll reports. In fact, you can go back to prior payrolls and re-run the report as well.
Well, if that is not exciting news all by itself, I have more good news. If your company or accountant uses QuickBooks, Summit Payroll can automatically create a file that can be imported directly into QuickBooks! Did I just say imported directly into QuickBooks – like with no re-keying of information? Yes, that is what I said! That means accurate information posted right into your books at the click of the mouse.
So, why not take advantage of this feature and let Summit Payroll generate the report or file that your business needs?
Tax Manager at Summit Payroll; Gary Guy
Filed in: Product News | PermalinkWednesday, March 10, 2010
Client Advocate Network
Summit Payroll is a service provider for the Client Advocate Network. The Network efficiently, effectively, and economically connects their clients to the right capital, people, and knowledge resources they need to achieve their goals and objectives. You can find out more about this organization here.
Filed in: Product News | PermalinkThursday, February 18, 2010
ASCCA
Summit Payroll is now the preferred payroll provider for the ASCCA, Automotive Service Councils of California. The ASCCA has been serving the automotive industry since 1940, and Summit is proud of this new relationship. There are more details to come for ASCCA members. To find more information about the ASCCA, please visit http://www.ascca.com.
Filed in: Product News | PermalinkThursday, February 11, 2010
Summit is a new member of the Brea Chamber of Commerce
At Summit, we firmly believe in supporting the local economy. As part of that commitment, we have added to our previous Fullerton Chamber of Commerce membership. We are now members of the Brea Chamber of Commerce. Brea is a local community that we want to support! For more information about the Brea Chamber visit http://www.breachamber.com.
Filed in: Product News | Permalink