Keeping up with ever-changing tax codes is a challenge for all business owners. Having a knowledgeable partner to help ease the burden makes a big difference. We monitor the number of employees as well as federal, state, and local taxes to guarantee you remain compliant. If your business has multi-state operations, you know that staying abreast of different tax requirements is critical. Additionally, we want to see you taking advantage of every available tax break. Below are the taxes and implications you need to know.
State Unemployment Taxes
Many states have started collecting more revenue by raising the wage limit instead of the tax rate to make up for the income short-fall. For example, if your business has a tax rate of 2% on wages of $7,000, and the wage base increases by $2,000, it's effectively collecting 28.5% more tax. Therefore, we can monitor unemployment claims for you so that your costs stay down.
One new development in payroll taxes is that same-sex couples can claim married status for federal tax purposes, as long as they were married in a state where it is legal, even if the state they currently live or work in does not recognize same-sex marriage.
Affordable Care Act – Different Rules, Different Sizes, Different Times
This new legislation creates new confusion in healthcare. It is safe to expect fluctuations in this law for several more years. For businesses of any size, the government recently ruled that seasonal workers employed for less than six months will not be included in determining the employee count for ACA purposes. However, other factors vary based on employee count. Below are highlights of the ACA to keep you informed.
- Less than 50 Employees: Small businesses (fewer than 50 employees) do not need to do anything yet. However, we strongly encourage businesses with employees hovering close to the 50 mark to implement a plan now. We monitor our clients’ employee counts to warn them before they approach that threshold.
- 50-99 Employees: Employers with 50-99 employees must start reporting their current coverage and the number of full-time equivalent employees by January 1, 2015, but they are exempt from ACA penalties until January 1, 2016.
- More than 100 Employees: For businesses with slightly more than 100 employees, the government intends to monitor their employment count to verify they are not attempting to avoid the health insurance issue by dropping employees. Companies with well over 100 employees must offer coverage to 70% of their full-time employees beginning January 1, 2015 and then to 95% of their employees beginning January 1, 2016. An automated ACA solution should already be in place, but if not, you need to find one immediately.
Reducing Tax Burdens
While we are not tax consultants, we do work closely with our clients' tax partners to offer expert guidance in tax management. One such service that you could take advantage of now is a review of your retirement contributions to find ways of deferring or decreasing taxes for you and your employees.
De-Stress Your Life
By working with our clients' tax partners, we help to make sure income taxes, annual reports, etc. are up to date and compliant. It is easy to feel overwhelmed and alone with tax issues, especially as a small business owner. We can help
you manage all the details while you manage your business.