No Tax Restarts

No Tax Restarts

by | Jan 20, 2017 | PEO, Small Business Group Health

No Tax Restarts

No need to wait till next Jan 1st to make changes.  No tax restarts are good news for PEO prospective groups. Federal Tax Restarts Are No Longer An Issue  The significant added expense of having to pay tax restarts often postponed or ended the PEO conversation for many of our prospective clients. It was an important consideration since companies were not eligible for tax restart credits and the cost of the restarts often diminished the financial value proposition of partnering with a PEO.

Example: A group starting a plan in May would have to pay for annual FICA and FUTA all over again with new PEO. A PEO is considered a different employer group.

Moving forward, there are no federal tax restarts to worry about. FICA and FUTA wage bases will not restart when an employer joins a PEO. Ask us about our Quick Start Program to ensure a smooth start to our personalized PEO model, and offers perks for your staff.

Contact us to learn more about our Quick Start Program on-boarding processs but here are the high points:

  1. You’ll have access to the best healthcare providers, coupled with the pricing that is offered to much larger companies.
  2. Your Worker’s Compensation rate may favorably adjust since you will be “adopted” under the PEO and their typically much better rates.
  3. You’ll have a partner that will help build systems for recruiting, hiring, employee administration and more.
  4. You’ll also have experts who will work with you to establish and maintain policies and programs, including workplace safety, sexual harassment, diversity and others that are typically required by law.

While this certainly is not going to fix everything in the ever growing PEO industry, it’s a huge leap forward and offers clarity. If you would like to explore how a PEO can help your company, contact us and we will be happy to help you.

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2012 Medicare B Deduction for Self-employed

2012 Medicare B Deduction for Self-employed

by | Mar 2, 2012 | MEDICARE, Tax

Some good news for small businesses owners on Medicare Part B.  The IRS is permitting for the 1st time self-employed people to deduct their Medicare Part B healthcare premiums.

What is Part B? Part B helps cover medically-necessary services like doctors’ services, outpatient care, durable medical equipment, home health services, and other medical services. Part B also covers some preventive services. The costs for Medicare part B have substantially risen form a modest $54 to a $99.90 minimum and now indexed for income.

Table 1: Part B Monthly Premium

 

 Beneficiaries who file anindividual tax return with income

  Beneficiaries who file a joint tax return with income

Your 2012 Part B Monthly Premium Is

If Your Yearly Income Is

$99.90

 $85,000 or less

$170,000 or less

 $139.90

 $85,001-$107,000

$170,001-$214,000

 $199.80

 $107,001-$160,000

$214,001-$320,000

 $259.70

 $160,001-$214,000

$320,001-$428,000

 $319.70

 Above $214,000

Above $428,000


source: www.medicare.gov

Prior to the 2010 tax year, the IRS did not permit the deduction to seniors who paid Medicare Part B health insurance premiums, according to a Bloomberg report.  Strangely the IRS did not release of this announcement but the deduction is on line 29 of the new 1040 tax form and applies to people who do not claim a tax deduction.

Anyone who is self-employed, regardless of age, may deduct the premiums paid for health insurance, under certain conditions such as insurance established under the business or in the name of the person who runs the business.

This posting is not necessarily tax advise and it is recommend to  check with you accounting professional before filing 2011Tax returns.

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