The recently enacted Health Care Affordability Act and the HIRE Act (aka Jobs Bill) can provide employers with both a new $1,000 federal hiring credit and a 6.2% payroll tax break for qualifying employees through December 31, 2010.
Long Beach, CA (PRWEB) March 30, 2010
Blake Christian, a Long Beach CPA and corporate tax credit expert announces that with the passage of recent federal legislation regarding healthcare reform and job stimulation, there are now new federal hiring credits and payroll tax breaks available that will help to offset some of the health insurance tax increases that will affect many California businesses. California employers can claim these federal benefits in 2011 and 2010, respectively, and small employers with less than 20 employees at the beginning of 2009 may also be entitled to a $3,000 California hiring credit for new positions they added in 2009.
Corporations in California can maximize their tax savings through the recently passed Hire Act or Jobs bill, which offers significant tax incentives for hiring new employees. The legislation brings with it a payroll tax break in the form of a 2010 6.2% FICA tax holiday for wages paid to qualified employees hired after February 3rd through December 31, 2010. In addition the Jobs Bill provides an additional tax benefit in the form of a 2011 $1,000 hiring credit for businesses that hire qualifying new employees after February 3, 2010. There are also cuts to capital gains taxes for certain small businesses.
A Tax Partner with Holthouse, Carlin and Van Trigt, LLP; Co-Founder of the National Tax Credit Group, LLC; past chairman of the Long Beach Area Chamber of Commerce as well as a nationally recognized speaker and author, Blake Christian brings thirty years of expertise in corporate tax, business planning and incentive tax credits, including Location-Based Incentive Credits and Energy Eco credits, which can be used to enable California corporations and other business forms to gain significant tax breaks this tax season.
Blake Christian, through his corporate tax planning and tax preparation, can help your company leverage these credits to your company's benefit. This is an important and timely consideration because at the same time California corporations will be facing significant increases in health insurance costs and various related federal and California tax hikes, The new healthcare legislation penalizes certain employers who have “Cadillac” insurance plans that provide better-than average employee benefits and cost more than $23,000/ yr. for family coverage or $8,500/yr. for individual policies. This 40% federal excise tax (which the Obama Administration projects will generate $134 billion in penalty collections) is expected to cause some businesses to switch to health insurance plans for their employees that offer fewer covered services and higher co-pays in an effort to reduce costs, due in part to the new legislation keeping in place the exemption of insurance companies from anti-trust laws and therefore no limits to insurance rate hikes.
For additional information about how the new federal healthcare and jobs legislation will affect corporate and individual taxation and how to claim your corporate and individual tax credits, call Blake Christian, CPA at (562) 590-9535 or visit online at blakechristian.com.
About Blake Christian, CPA:
Blake Christian, a nationally recognized Location-Based Incentive Credits expert, offers Los Angeles CPA services with a focus on corporate tax credits and corporate tax planning and preparation.