1. A Small Business Health Care Tax Credit went into effect in 2010. The calculation is based upon health insurance premiums paid by small business employers. Generally, the maximum credit is 35% of premiums but is based upon average salaries paid. For tax years beginning in 2014 or later, there will be changes to the credit which will increase the credit under certain circumstances.

Small Business Healthcare Tax Credit Expanded for 2014. New Regulations Provide Details and Transition Rules
http://www.adp.com/tools-and-resources/adp-research-institute/insights/insight-item-detail.aspx?id=1C40B2BE-C2C2-4009-83AD-DB59F5379878

ADP’s website includes a calculator for estimating whether an employer might be eligible for a Small Business Tax Credit. Please contact us for a precise tax credit calculation based upon your particular salary and insurance premium amounts.

http://smallbusiness.adp.com/en/client-support/health-care-calculator.aspx

Visit the IRS’s website for narrative assistance in determining full-time equivalent employees and average annual wages:

http://www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-Questions-and-Answers:-Determining-FTEs-and-Average-Annual-Wages

2. An additional .9% Medicare tax on wages and self-employment income goes into effect in 2013. The following chart illustrates who is liable for this tax:

Filing Status Threshold Amount
Married Filing Jointly $250,000
Married Filing Separately $125,000
Single $200,000
Head of Household (with qualifying person) $200,000
Qualifying Widow(er) with dependent child $200,000

For more information on this tax, please contact us or visit:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax

3. A 3.8% Medicare contribution tax on net investment income goes into effect in 2013.

The following chart illustrates who is liable for this tax:

Filing Status Threshold Amount
Married Filing Jointly $250,000
Married Filing Separately $125,000
Single $200,000
Head of Household (with qualifying person) $200,000
Qualifying Widow(er) with dependent child $250,000

For more information on this tax, please contact us or visit:
http://www.irs.gov/uac/Newsroom/Net-Investment-Income-Tax-FAQs

4. An excise tax called the “Cadillac Tax” will go into effect in 2018. This tax on employers or health insurers will be imposed on the value of health insurance benefits exceeding a certain threshold. It is currently stated at 40% of plans with premiums exceeding $10,200 for individuals or $27,500 for a family (not including vision and dental benefits). For more information, please visit:
http://www.uhc.com/united_for_reform_resource_center/health_reform_provisions/excise_tax_on_high_cost_coverage.htm

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