Tag Archives: nh

Taking advantage of employer tax benefits in your business

As a business owner in New Hampshire, make sure you’re getting these employer tax benefits benefits:

 

1) Dependent Care Benefits—If you incur childcare expenses so that you can work, you should check to see if your employer has a dependent care program. If dependent care benefits are provided by your employer under a qualified plan, you may be able to exclude up to $5,000 of child care expenses from your wages. 

 

2) Employer health care plans allow you to exclude the cost of insurance for you and your family from your wages.

 

3) If your NH employer has a 401(k) plan, you can elect to defer (pre-tax) a maximum of $17,500 for 2013. If you are 50 years or older, the maximum is increased to $23,000. These plans are especially beneficial when the employer provides a matching contribution. 

 

3) Flexible Spending Accounts—Some employers provide flexible spending accounts, which allow an employee to make contributions on a pre-tax salary reduction basis to provide coverage for up to $2,500 of medical and dental expenses. 

 

4) Tax-Free (income excludable) Employee Fringe Benefits—If the employer provides them, the law allows an exclusion from the employee’s taxable income for the following benefits:
 

(1) The cost of up to $50,000 of group-term life insurance.
 

(2) $245 (in 2013) per month for qualified parking.

 

(3) $245 (in 2013) per month for transit passes and commuter transportation.

 

(4) $20 per month for bicycle commuting expenses.

 

Are you getting all the tax free benefits you can out of your NH business? To learn more, check out Appletree Business Services’ Business Financial Confidence Map.

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

New IRS Vehicle Mileage Rates out for 2014

It’s not often that we see the price of something go down, but the IRS has determined that it’s now costing us less to operate our cars, and so now we will start getting less to deduct when we use it for business.

 

Beginning on Jan. 1, 2014, the IRS Vehicle mileage rates for the use of a car (also vans, pickups or panel trucks) will be 56 cents per mile for business miles driven.

 

The rates decrease one-half cent from the 2013 rates. If you’re reimbursing employees based on the IRS rate, take note of this for the beginning of next year.

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

How Will Health Care Reform Affect Your Business?

The Affordable Care Act (ACA for short) has left businesses and individuals confused about what the health care reform law contains and how it affects them. Even the accountants are confused!

My challenge in this article is to give you the kindergarten primer, and maybe share one little tidbit you did not know already. So here goes:

1 – Insurance companies have  new requirements. For example, they cannot refuse coverage due to pre-existing conditions, preventive services must be covered with no out-of-pocket costs, young adults can stay on parents’ policies until age 26, and lifetime dollar limits on health benefits are not permitted.

2 – The law mandates health insurance coverage for ALL individuals. If you’re one of the 45 million or so Americans without health insurance, you will need to get coverage for 2014 or pay a penalty of $95 or 1% of your income, whichever is greater. Low-income individuals may qualify for subsidies and/or tax credits to help pay the cost of insurance.

It is my humble opinion that $95 per person is not really enough, at least for 2014, to convince people to buy insurance. So I’m suggesting that if you don’t have insurance now, it could make sense because of SO much confusion in the health care marketplace, to just watch everyone else make fools of themselves.

Tremendous media attention is focused on the health insurance exchanges or “Marketplace” that opened for business on October 1. The media has left many people thinking everyone has to deal with the exchanges. The fact is that if you are covered by Medicare, Medicaid, or an employer-provided plan, you don’t need to do anything.

Many individuals will qualify for federal tax credits which will reduce the premiums they actually pay. Each state’s Marketplace will have a calculator to assist individuals in determining the amount, if any, of their federal tax credit.

3 – For businesses with 50 or more full-time employees, the requirement to provide “affordable, minimum essential coverage” to employees has been delayed for one year and is not required until 2015. Originally, employers had been required to file information returns that reported details about the health insurance they provided, with penalties to apply if the insurance did not meet standards. Companies complained that they needed more time to meet the reporting obligations, and in response the IRS made the reporting requirement optional for 2014. Without the reporting, the IRS could not determine penalties, so the penalties also were postponed for a year.

Bottom line: The IRS is encouraging companies to comply in 2014 even though there are no penalties for failure to do so.

4 – Businesses with fewer than 50 employees are encouraged to provide insurance for their employees, but there are no penalties for failing to do so. A special marketplace will be available for businesses with 50 or fewer employees, allowing them to buy health insurance through the Small Business Health Options Program (SHOP), but the implementation of SHOP has now been delayed a full year, meaning you’ll just need to keep talking with your current insurance broker.

5 – Businesses with fewer than 25 employees that pay at least 50% of the health insurance premiums for their employees may be eligible for a tax credit for as much as 35% of the cost of the premiums. To qualify, the business must employ fewer than 25 full-time people with average wages of less than $50,000. For 2014, the maximum credit increases to 50% of the premiums the company pays, though to qualify for the credit, the insurance must be purchased through SHOP (or a broker authorized to offer SHOP insurance that is in compliance with the Affordable Care act.

6 – Businesses who DO NOT have a group insurance plan set up for their business can no longer use a SECTION 125 employee plan for deducting qualified medical insurance premiums and expenses on a pre-tax bases. This doesn’t affect dental, vision or dependent care expenses allowed in a 125 plan.

Anyway, confusion continues.

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

Small Businesses – Keep your health insurance broker on your holiday card list

Businesses with fewer than 50 employees are encouraged to provide insurance for their employees, but there are no penalties for failing to do so.

A special marketplace will be available for businesses with 50 or fewer employees, allowing them to buy health insurance through the Small Business Health Options Program (SHOP), but the implementation of SHOP has now been delayed a full year.

You’ll just need to keep talking with your current insurance broker.

To learn more about these kinds of options and to see what they can do for your business, check out the Appletree Business Services Business Financial Confidence Map here.

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

Tax Bills for 2013 may be a shocker

Higher income taxpayers are in for a real shocker this year when they get their tax bills.. Higher tax rates, new net investment income tax, additional payroll and self-employment taxes, the phase-out of exemptions, and itemized deductions all spell big tax increases. For some taxpayers the impact can be quite significant.

However, it may not be too late to improve your situation with some year-end planning, and the sooner the better. Options include taking advantage of unrealized losses, business expensing, tax credits, delaying certain deductions and tax prepayments, income deferral, and other techniques.

Do you know if or how this affects your business? Get confidence today by having us review your situation. Take a look at our Business Financial Confidence Map here.

 

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

SHOP for Small Business Group Insurance (Video)

HealthCare.Gov was supposed to make it so small business could get group insurance in the marketplace. Did you know there are other choices?

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

When A Shareholder Agreement Pays! (Video)

Ever end up in a situation where you and your business partner are engaged in your business with different levels of time and energy? Is it time to get more confidence in how and how MUCH you get paid?

 

Check out this short clip with Steve Feinberg (AKA CPAsteve) and learn the value and the necessity of a new Shareholder Agreement. You can get more information like this by looking at our Business Financial Confidence Map.

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

Sleep Easy In Your New Small Business (Video)

Leaving a job and starting a new small business presents many challenges. If you owe money to a 401k from your old job, you need to free up cash as you build your new business. See what CPAsteve has to say…from the road! You can get more advice by that with our Business Financial Confidence Map.

 

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.