Own a small business? You could be eligible for a tax credit!

Did  you know if your client has no more than 25 full-time employee equivalents (FTE’s), they could be eligible for a credit up to 35% of premium on their tax return?!!

 

Small Business Owners can receive a tax credit to help them provide coverage to their employees starting with the tax year 2010.! Now is the time to make sure you are aware of the changes, and make your client aware of the advantages of small group products! Encourage Small Employers to offer health insurance for the first time or maintain the coverage they currently have.Partner with JJ Consults, and provide your Small Group clients the answers and solutions they need to provide their employees quality health care! The information below was copied from the IRS website (http://www.irs.gov/newsroom/article/0,,id=223666,00.html),and it contains helpful links to learn about this great opportunity :

 

Received a Postcard from the IRS?

Millions of small employers will receive postcardsfrom the IRS beginning the week of April 19 that alert them to the new Small Business Health Care Tax Credit and encourage them to check their eligibility. Even if you don’t receive a postcard, your business still may be eligible. Read more about this effort.

http://www.irs.gov/newsroom/article/0,,id=221511,00.html

 

Eligibility Rules

• Providing health care coverage. A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate.
• Firm size. A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible).
• Average annual wage. A qualifying employer must pay average annual wages below $50,000.
• Both taxable (for profit) and tax-exempt firms qualify.

Amount of Credit

• Maximum Amount. The credit is worth up to 35 percent of a small business’ premium costs in 2010. On Jan. 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers).
• Phase-out. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.

Three Simple Steps for Employers to Qualify

To determine if your small business or tax exempt organization qualifies for the Small Business Health Care Tax Credit, follow the three simple steps on our fact sheet. http://www.irs.gov/pub/irs-utl/3_simple_steps.pdf

 

Examples

Scenarios illustrate how the credit applies to employers in different circumstances. http://www.irs.gov/pub/irs-utl/small_business_health_care_tax_credit_scenarios.pdf

 

YouTube Primer on Health Care Credit

This new videoexplains the who, what, why and how of the Small Business Health Care Tax Credit. http://www.youtube.com/watch?v=85i1kzIG57k

 

For More Information

New guidancemakes it easier for small businesses to determine whether they’re eligible for the new health care tax credit under the Affordable Care Act and how large a credit they’ll receive. http://www.irs.gov/newsroom/article/0,,id=223577,00.html

 

Related Items:

• Flyer on the Small Business Health Care Tax Credit for small employers: http://www.irs.gov/pub/newsroom/taxcreditflyer.pdf
• Affordable Care Act of 2010: News Releases, Multimedia and Legal Guidance: http://www.irs.gov/newsroom/article/0,,id=222814,00.html
• Affordable Care Act Tax Provisions: http://www.irs.gov/newsroom/article/0,,id=220809,00.html

Why Do You Need Life Insurance?

No one wants to leave their family unprepared for the future. Planning today can protect the promise of your family’s tomorrow. Following are some of the reasons why you should consider life insurance from me.

To Replace Lost Income.
Most people buy life insurance as a means to replace income lost if something happens to them. Providing money for survivors is important. Life insurance is the most cost effective way to do it.

To Pay Off Debt.
Debt can be very burdensome to your family, especially without your income available to help repay it. Life insurance can be used to pay off debt and help create more financial security for your family.

To Pay Final Expenses and Offer an Emergency Fund.
Final expenses can be very significant, especially if there are large medical bills, funeral or legal expenses to pay. An emergency fund can cover unexpected bills such as emergency repairs to your home or car. Life insurance provides cash that can be used to help your family cope in a time of distress.

To Help Pay for Your Children’s Education.
Educating children can be expensive and often requires a long-term strategy. Many people plan to contribute funds each year until they have enough money saved to pay all or some of their children’s education costs. Unfortunately if something unexpectedly happens to you, there may not be enough time to set aside adequate funds for education. Life insurance can help by creating a lump-sum of cash that you can count on to help pay part of your children’s education costs.

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Invest in Your Kids

It’s never too early to begin building a secure future. Give your child or grandchild a head start with life with an insurance policy that grows with them – $20,000 in coverage for $45 a YEAR; for kids ages 0 – 24. Click here to cover your child or grandchild: http://jjconsults.com/junior-estate-builder or call Jackie at 205-378-9352.

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Invest in your kids