WSD Summer 2010
Posted June 9, 2010
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Inside this issue:
Businesses that provide health insurance coverage for 25 or fewer full-time employees may now qualify for a special tax credit. The IRS has added a section to its Web site that provides answers and resources for those that may qualify.
The centerpiece of the Hiring Incentives to Restore Employment (HIRE) Act is the $13 billion “Hire Now Tax Cut,” which rewards employers that hire workers who have been unemployed for two months or more. Unlike most tax credits, which are claimed at the end of a tax year, HIRE provides immediate cash flow relief by exempting the employer from paying the 6.2 percent payroll tax on the qualified new employee.
Millions of workers have lost jobs in recent years. Many were participants in their employer’s qualified benefit plan. If enough employees are involuntarily terminated in a given year, a “partial plan termination” (PPT) may be declared by the IRS and the plan may be disqualified. Avoiding such dire consequences requires a timely evaluation by the employee benefit plan sponsor.
Transfer pricing is one of the most commonly overlooked aspects of “going global” when establishing locations in another country. But tax considerations can often be the deciding factor dictating whether or not it makes sense to have a physical presence in another country, versus establishing an agency relationship with an existing foreign entity.
Signs of a slow economic recovery are on the horizon. Clifton Gunderson has developed a variety of articles, white papers and other resources.
