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As Tax Filing Extension Deadlines Near, IRS and HHS Announce New Round of Outreach to Small Businesses and Practitioners
As the upcoming filing extension tax deadlines approach, the Internal Revenue Service, in partnership with the Department of Health and Human Services, is announcing a new round of outreach to small employers and the professional service providers they rely on to encourage them to review the new Small Business Health Care Tax Credit to see if they are eligible.
"As the filing deadlines approach, we want to make sure that small business owners don't leave any money on the table,” said IRS Commissioner Doug Shulman. “Small businesses that offer health insurance should learn about this credit and claim it if they are eligible."
The small business health care tax credit was included in the Affordable Care Act enacted last year. Small employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for the small business health care tax credit. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less.
The Treasury Department and Internal Revenue Service today requested public comment on a proposed affordability safe harbor for employers under the shared responsibility provisions included in the Affordable Care Act that will apply to certain employers starting in 2014.
Under the Affordable Care Act, employers with 50 or more full-time employees that do not offer affordable health coverage to their full-time employees may be required to make a shared responsibility payment. Notice 2011-73, posted today on IRS.gov, solicits public input and comment on a proposed safe harbor, designed to make it easier for employers to determine whether the health coverage they offer is affordable. To that end, Treasury and IRS expect to propose a safe harbor permitting employers that offer coverage to their employees to measure the affordability of that coverage by using wages that the employer paid to an employee, instead of the employee’s household income. This contemplated safe harbor would only apply for purposes of the employer shared responsibility provision, and would not affect employees’ eligibility for health insurance premium tax credits.
President Obama announced a new policy that will accelerate payments to small business contractors so they can reinvest that money in the economy and drive job growth.
Small businesses are the primary engine of job creation and job growth across the country. However, in today’s economic climate many face tight budgets and limited resources. With these challenges in mind, last week in his address to Congress the President emphasized the need to take common sense steps to give small businesses the flexibility they need to invest and hire. And that is what we are doing today.
One hundred nonprofit organizations from 44 states and the District of Columbia received grants under the Program for Investment in Microentrepreneurs Act (PRIME), the U. S. Small Business Administration announced today.
Grants will be used to provide business-based training and technical assistance to low-income and very low-income entrepreneurs to help them start, operate, or grow a small business. Grants will also be used to better equip community-based nonprofit organizations to provide training.
The U.S. Small Business Administration will host the second of its Export Matchmaker Trade Fair & Conference series in Tampa, Fla., on September 14. The program is designed to provide small business manufacturers and suppliers an easy and inexpensive means for exporting their products by matching them with trade intermediaries from across the country.
“One of President Obama’s goals in the National Export Initiative is to double U.S. exports in five years,” said SBA Administrator Karen Mills. “In these challenging economic times, and with 96 percent of the world’s population living outside the U.S., it just makes sense for Florida’s small businesses to export.”