New and existing small employers who do not yet benefit from the Small Business Health Care Tax Credit should look into whether the credit can help them provide insurance to their employees. For tax years beginning in 2014 and after, the maximum credit is 50 percent of premiums paid for small business employers, and 35 percent of premiums paid for tax-exempt small employers, such as charities. Beginning in 2014, a small employer may qualify for the credit if: It has fewer than 25 employees who work full-time, or a combination of full-time and part-time. For example, two half-time employees equal one full-time employee for purposes of the credit.
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Ban has spurred critical broadband investment and should be made permanent
National Association of Manufacturers Vice President of Tax and Domestic Economic Policy Dorothy Coleman issued this statement thanking Congress for including the ban on taxing Internet access in the continuing resolution approved recently:
September 30th marked the end of the 2013-2014 fiscal year. And because agencies cannot carry their funds over from year to year, explains Brianna Ehley of the Fiscal Times, federal agencies tend to spend September 30th on a shopping spree, spending the rest of their funds before they lose them. In 2013, federal agencies spent $50 billion in the last week of the fiscal year — the Department of Veterans Affairs purchased $562,000 worth of artwork, while the Department of Agriculture bought $144,000 in toner. The Department of Defense spent $5.5 billion on September 30, 2013, sending emails to employees telling them to spend the rest of their funds. This year, spending has again exploded. Already in September, the IRS has purchased $2.4 million in toner, while the Department of Homeland Security spent more than $15,000 on two pianos. The American embassy in New Delhi, India, bought $20,362 in alcohol.
How does your state compare to its neighbors?
Washington, DC (Sept 17, 2014)—This morning, the nonpartisan Tax Foundation released its bi-annual report on state and local sales tax rates throughout the U.S. The report details the significant recent changes that have taken place in states’ treatments of sales taxes. Using a population-weighted average of local sales taxes, the piece also details the combined state and local sales tax rates for each state and explains how sales taxes fit into a state’s overall tax structure.
Note from the IMA: The Illinois Manufacturers’ Association opposed SB 3324 and asked Governor Quinn for a veto. The IMA is leading a coalition to repeal this new tax that was passed under false pretense.
McGladrey TAX ALERT | September 16, 2014
On Aug. 15, 2014, Illinois Governor Pat Quinn signed SB 3324, Public Act 98-0978 (the Act), amending the state’s insurance self-procurement tax effective Jan. 1, 2015, to narrow the definition of exempt industrial insureds, effectively expanding the applicability of the tax to many businesses that were previously exempt.
The Illinois insurance self-procurement tax is a 3.5 percent insurance premiums tax imposed on Illinois-based businesses that procure insurance from non-Illinois insurers that are not licensed to do business in the state. Under current law, the state provides a self-procurement tax exemption for industrial insureds.