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Posts Tagged ‘Tax’


Thinking of Hiring? Do It Now to Benefit From the HIRE Act

October 29th, 2010 :: mhaubrich

By Maria Valdez Haubrich

Are you thinking about hiring? With the economy showing signs of recovery, many small business owners are. If you’re one of them, it’s a good idea to get moving before the end of 2010. Why? Because through January 2010, you can still take advantage of tax breaks associated with the Hiring Incentives to Restore Employment (HIRE) Act.

The HIRE Act gives employers tax incentives to hire workers who have been unemployed for 60 days or longer. If a company hires such workers, wages paid to them are exempted from the employer’s 6.2 percent share of Social Security payroll taxes for the rest of this year. Employers can also claim a tax credit of up to $1,000 for each qualified worker they hire who is retained for one year.

As of August 2010, U.S. businesses have hired an estimated 8.1 million new workers eligible under the HIRE act, and have gotten billions in the tax exemptions and credits. The program can be especially helpful to companies in states with big pools of qualified unemployed workers, such as California.

You don’t have to have previously laid employees off to be eligible for the exemptions, and there is no minimum age requirements or minimum hours worked for qualified new hires. To get more information about the restrictions and details of the program, as well as the forms you’ll need to claim the tax credits and exemptions, visit the IRS website.

Image by Flickr user Andrew Magill (Creative Commons)

DISCLAIMER: The information posted in this blog is provided for informational purposes.  Legal information is not the same as legal advice — the application of law to an individual’s specific circumstances. The information presented here is not to be construed as legal or tax advice. Network Solutions recommends that you consult an attorney or tax consultant if you want professional assurance that the information posted, and your interpretation of it, is appropriate to your particular business.

Preparing for the New 1099 Requirements for B2B Transactions

July 30th, 2010 :: Steven Fisher

If you are in business for yourself it is safe to say that you probably utilize sub-contractors for your own business or for a client project. In the past it was pretty straightforward – if the person was not a corporation, they were a 1099 contractor. Company to company or B2B transactions were filed with the IRS through an I-9 form but that was pretty much it.

New regulations (don’t you just love them?) have mandated that all B2B transaction must be filed with a 1099 form. Section 9006 of the massive Patient Protection and Affordable Health Care Act will mean yet another huge paperwork burden for your small business. I wanted to thank Bobbie Lee who wrote this great article on Entrepreneur.com on the details buried in the new Healthcare legislation.

Here are some excerpts:

“Beginning in 2012, all businesses will be required to prepare 1099s for all services and goods purchased from all vendors in excess of $600. Current law dictates that only services provided in excess of $600 must be reported via form 1099 and that corporations (with the exception of attorneys) are exempt from receiving 1099s.”

“Beginning in 2012, corporations will no longer be exempt, and purchases of goods must also be included. The passing of this legislation is an attempt by the government to close the $300 billion tax gap, which will help pay for health-care reform. So I guess it indirectly relates to the Patient Protection and Affordable Health Care Act in which it was included.”

Depending on the industry, many businesses must collect, report and pay over a variety of excise taxes, as well. How much does all that cost your business in bookkeeping and payroll preparation fees? Now business owners must report all business-to-business transactions. So purchases your business makes from Staples, Office Depot and other vendors are included as reportable transactions.”

To read the full article with more details on the impact on small business, check out http://www.entrepreneur.com/money/taxcenter/taxpertisecolumnistbonnielee/article207404.html

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