Are you, or do you know someone, thinking of starting a new business in North Carolina? If so, you may want to attend the Small Business Seminar next week that is being sponsored and hosted by the IRS in conjunction with the North Carolina Department of Revenue.
The seminar will be held at Johnson C. Smith University, Technology Center Auditorium, Rm 103, 100 Beatties Ford Road, Charlotte, NC.
The NCDOR started a series of seminars last fall to assist people who are considering starting a new business in North Carolina. The IRS is now participating in these seminars.
The focus of the seminars is to help potential new business owners understand some of the keys to success. They will also walk you through eight basic steps every small business owner should know when starting a business.
Attendees take part in tabletop exercises to learn about registering a business, filling out and sending in tax returns, as well as learning about important federal tax credits, record keeping, employment taxes and protecting financial documents.
"We've had high levels of participation and interest in the seminars during the past 9 months," Secretary of Revenue David Hoyle said. "The feedback from individuals in attendance has been outstanding. They leave knowing the tax laws that affect their business. We are excited that our new partnership with the IRS will provide our citizens with the best foundation possible to establish successful businesses."
One additional benefit for NC business owners is, beginning in 2012, owners of Sole Proprietorships, Partnerships, S Corporation or LLCs will be able to deduct up to $50,000 of their business income from their NC state taxes. To learn more about this tax benefit for NC business owners check out our article Big Tax Savings for NC Business Owners.
Since seating for this seminar is limited, you will have to contact the NC Department of revenue to reserve a spot.
Of course after you start a business, contact us for the on-going support and guidance you will need to manage and grow your business.
With the Supreme Courts decision to uphold most of the Patient Protection and Affordable Care Act and Health Care and Educational Reconciliation Act of 2010, small business owners are wondering how that decision and the law will impact them. The bill has far reaching implications and no one quite knows what the final rules and regulations will be since they are still being written.
This article is specific to the Employee Mandate for businesses that have the equivalent of 50 or more fulll time employees and the Health Care Tax Credit for businesses with the equivalent of fewer than 25 full time employees.
The Employee Mandate and Businesses with Greater than 50 Full Time Equivalent Employees
- The first group, those with 50 or more Full Time Equivalent Employees (FTEs), will be mandated (i.e., the Employer Mandate) to to provide a minimum amount of health care coverage to their employees. If an employer chooses not to provide the minimum amount of health care coverage stipulated, which causes the employee to receives an applicable premium tax credit or cost sharing reduction payment, the employer will be assessed a non-deductible tax. Simply put, you will have to provide a minimum level of health care coverage to your employees and if you don't you will be subject to a tax penalty.
The amount of the non-deductible tax is $2,000 per employee or if an employee actually receives coverage through an exchange, the penalty on the employer increases to $3,000. This mandate is scheduled to become effective in 2014.
Businesses with fewer than 50 Full Time Equivalent Employees are not subject to this mandate and will not be penalized if they do not provide health care coverage to its employees.
The Good News for Businesses with 25 or Fewer Full Time Equivalent Employees
Businesses that have the the equivalent of fewer than 25 full time employees and are paying at least 50% of the premiums on behalf of its employees, may be eligible for a tax credit of up to 35%. Busineeses, to qualify for this credit, must meet the following criteria:
- Have fewer than than the equivalent of 25 full time employees ( if you have two employees that work 20 hours each, that equals 1 full time employee)
- The average annual pay per full time employee must be less than $50,000.
- All for profit and tax exempt qualified employers are eligible to qualify for this tax credit.
- The tax credit for-profit employers can be as high as 35% and for tax exempt organizations up to 25%.
- The maximum credit for-profit employers increases to 50% beginning in 2014.
If you qualify for this credit it is a good opportunity to save some money on taxes. Finally, the credit can be carried back or forward. If you were eligible to claim the credit last year but did not, you can file an amended return to claim the credit. For more information about the Health Care Tax Credit for Small Business download our Free Health Care Tax Credit Guide for Small Businesses.