Here's a handy news reel giving you the lowdown on the tax news for the month of June.
Small Business Health Care Tax Credit for Small Employers
A new small business tax credit is avaliable, helping business owners provide insurance for their employees. The IRS sent out post cards to those that qualify, but even if you didn't recieve one, you have a chance at this credit.
- 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.
| Watch out for Automatic Revocation for Not Filing annual Return or Notice|
The majority of tax-exempt organizations (with the exception of churches) are required to file a yearly return or notice with the IRS. If the organization doesn't file as required for three consecutive years, it can automatically lose its tax-empty status. It might not be fair, but it's the law. Loss of the tax exempt status means the organization loses their status and they will be required to file income tax returns and pay income tax. Contributors to the organization will not be able to deduct their donations. File if you haven't already if you don't want to lose your tax exempt status!