We realize it’s only October, and reviewing your taxes is probably the last thing on your mind, but for some types of earners, now may be a good time to do it. Read this article from U.S. News for who should be meeting with their CPA in the fourth quarter and why!
…about the Affordable Care Act, that is! Click the image below to download this one-pager from our friends at the IRS for some very helpful information and links regarding employers and the ever-confusing Affordable Care Act!
Still have questions? No problem, that’s what we’re here for. Please contact one of our qualified CPAs today! Check out our locations page for one near you.
With the Affordable Care Act there are certain requirements of you if you’re an applicable large employer. If you’re not sure, well, no fear, there are steps you can take to determine if you are one or not. Click the image below to download a helpful one-pager that the IRS has put together on this very topic. There are active links that take you directly to further information, should you need it!
As always, H&S Companies is here to guide you through the tax jungle. Please contact one of our many qualified CPAs or Accountants with any questions. Take a look at our locations pages to find someone near you.
According to CNN Money, Michigan is among the 10 fastest-growing states in the country. In 2011, we experienced growth at a rate of 2.3%; our economy is worth $385 billion dollars. The article attributes this growth to the revival of the auto sector, which contributed to about half of our economic growth last year.
On Tuesday, April 17, 2012, the State Senate introduced a reform package for the Personal Property tax. Over the next several weeks the State Senate Finance Committee will meet to review and discuss the plan. As the package currently stands, the following changes are being proposed:
- Eliminate Michigan’s Personal Property tax for commercial and industrial businesses that have under $40,000 of taxable property in the same jurisdiction.
- Properties that are in certain enterprise zones, as well as, technology park developments that qualify for an abatement, will still qualify for relief until they become exempt under this new plan.
- Starting in 2015, “qualified new personal property” purchased after December 31, 2011, that meets the definition of “eligible manufacturing personal property”, will be exempt.
- Also starting in 2015, qualified new personal property that is over 10 years old will be removed from the books. A seven year phase out will begin after 2015 to eliminate qualified industrial property purchased between 2005-2011.
- Michigan’s Treasury will be instructed to create a Personal Property Tax Reimbursement Fund that will refund 81% of funds lost to local governmental units.
What do you think about the latest reform that has been proposed? Visit facebook.com/hscompanies to voice your opinion or ask questions for one of our tax professionals to answer.
On December 19, 2011 Governor Rick Snyder signed legislation to deal with Michigan’s bankrupt unemployment insurance system. Part of this legislation allowed for the State of Michigan to retire the Federal debt and issue $3.323 billion in revenue bonds, which they did on December 28, 2011. By refinancing the debt, the FUTA credit reduction was reset to zero in 2012.
There are a couple of key changes you will want to keep in mind. The Obligation Assessment will be applied on all contributing employers, not just those with a negative balance like the previous solvency rate, until the bonds are repaid. The bonds are on a 10-year repayment schedule. The Obligation Assessment will be reported as a line item on Form UIA 1771, Tax Rate Determination for Calendar Year 2012. This new assessment will be determined on an annual basis and included on your annual Tax Rate Determination.
Also, effective in 2012, the taxable wage base will increase from $9000 to $9500 until the Unemployment Trust Fund reaches $2.5 billion. The base will go back to $9000 if the fund balance can remain at $2.5 billion (net of benefits paid) for two consecutive quarters.
If you have any questions or would like further explanation on this matter please contact your H&S tax professional.