As business owners conduct their year-end tax planning, there are five tax regulations and credits they should evaluate before the New Year. Because it is unknown if Congress will address these and other related tax provisions before the end of the year, Paychex, Inc., a leading provider of payroll, human resource, insurance, and benefits outsourcing solutions for small- to medium-sized businesses, today released these tax tips for consideration.
“2013 has been a year of numerous regulatory and legislative changes that have tax implications for business owners,” said Paychex President and CEO Martin Mucci. “Paychex is dedicated to helping business owners understand these changes and the potential opportunities that exist for them to reduce their tax liability and save money. Fortunately, there is still enough time left in the calendar year for business owners to quickly consider the options available to them and determine if they can help their business.”
The five tax tips identified by Paychex are:
- Small Business Tax Credit
Certain small business owners who offer health coverage to employees can apply for the small business tax credit to help offset the cost of premiums, and those who don’t may now be able to afford it. Starting in 2014, the credit will be available to small employers who offer health benefits to their employees through the Small Business Health Options Program (SHOP) marketplace. Also in 2014, the amount of credit available to small business owners will increase. On November 27, the Health and Human Services (HHS) Department announced a one-year delay in online applications for the federally facilitated SHOP; however, the program itself has not been delayed. Employers can view plan options and which insurance companies offer SHOP-qualified health plans in their area on the healthcare.gov website. With the delay of the online applications, employers will need to work with an agent, broker, or insurer to purchase coverage.Employers can utilize the Paychex Small Business Tax Credit Calculator to determine if they qualify for the credit, and if so, how much the credit will be. For more information about the small business tax credit, information on Paychex solutions, and coverage options, visit www.paychexinsurance.com.
- Defense of Marriage Act
- Establish a Retirement Plan
- Business-Advantaged Tax Extenders
- FUTA Credit Reduction