| Having trouble reading this newsletter? |
 |
||||||
Forward to a Friend
|
||||||
 |
|||||
|
June, 2010 Contents
Not-for-Profit Services We specialize in providing not-for-profit organizations a variety of comprehensive solutions for their accounting and consulting needs. At SC&H, we know that not-for-profit organizations are unlike any other type of business. From uncertain budgets and lean accounting staff, to board relations and unusual tax issues, your goals and challenges are unique. Only a service provider with a complete grasp of these issues and a strong commitment to serving not-for-profit organizations can provide the responsiveness and quality of services that will exceed your expectations. Many of our partners and managers are active on not-for-profit boards, which provide us with a first hand understanding of your needs. This understanding is why SC&H has become the CPA and management consulting firm of choice for many not-for-profit entities including educational and healthcare institutions, associations, religious organizations and foundations. Services include:
Testimonials "SC&H has the breadth of a national firm while providing personalized local service in an efficient and customer friendly manner. I highly recommend this firm." - CFO of a not-for-profit organization "I am pleased to share my thoughts regarding my association with SC&H. They have provided tax preparation and advisory services to my organization for over ten years. I find the professionals at SC&H to be very knowledgeable of the issues facing not-for-profit organizations. I highly recommend this firm." - CFO of a not-for-profit organization |
New Federal income tax incentives for hiring unemployed individuals
Recently, legislation has been signed into law providing a number of tax credits and incentives for businesses. Many of these tax breaks appear, on the surface, to be inapplicable to the not-for-profit community and may have been mistakenly ignored by tax-exempt organizations. However, tax-exempt organizations are eligible for certain payroll and healthcare tax incentives. President Obama's signing of the Hiring Incentives to Restore Employment (HIRE) Act is of particular interest to not-for-profit organizations as it includes a new payroll tax benefit directly related to hiring employees. Organizations who hire unemployed workers after February 3, 2010 and prior to January 1, 2011 may qualify for a 6.2 percent payroll tax incentive, which in essence exempts the organization from its share of Social Security taxes on wages paid to these employees after March 18, 2010. The organization will still be required to withhold the employee's 6.2 percent share of Social Security taxes (up to $106,800 of wages paid), as well as income taxes. Also, the organization and employee's share of Medicare taxes would also still apply. This payroll tax benefit can be claimed on the revised Form 941 - Employer's Quarterly Federal Tax return, a form normally filed quarterly with the Internal Revenue Service. Eligible employers can begin claiming the credit on their Form 941 for the second quarter of 2010, including the wages paid to qualified employees during the period of March 19, 2010 through March 31, 2010. In addition to meeting the qualification of being hired within the specified time frame, the newly-hired employee must state on Form W-11 - Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit - that they were unemployed during the 60 days prior to being hired or that they worked fewer than 40 hours for another employer during the 60 day period. The recent passage of the 2010 Health Care Act and 2010 Reconciliation Act also provides tax incentives for organizations by providing credits to those who either make available or maintain health insurance coverage for their employees. To qualify, an organization must offer health insurance to its employees as part of their compensation and contribute at least 50% of the premium cost. A qualifying employer must have less than the equivalent of 25 full-time employees and pay average annual wages below $50,000. For tax years 2010 to 2013, the maximum credit for tax-exempt organizations will be 25 percent of premiums paid. The maximum credit is available to qualifying employers who have 10 or fewer full-time employees. The credit is phased out for organizations that have 25 or more full-time employees or that pay average wages of $50,000 or more per year. Because the eligibility rules are based in part on the number of full-time employees, organizations that utilize part-time workers may qualify even if they employ more than 25 individuals. The credit is a refundable credit against payroll taxes, and will be limited to the amount of payroll taxes remitted by the organization during the calendar year in which their tax year begins. Payroll taxes for this purpose are federal income taxes withheld from employee wages and the employee and employer portions of Medicare insurance tax. Contact Lori Burghauser for assistance with capitalizing on the benefits of recent legislation for your organization. For more information about not-for-profit services offered by SC&H Tax & Advisory Services, LLC, contact Michael Young or Lori Burghauser. Michael Young Lori Burghauser
|