Jennifer was asked ”Doctors are getting killed out there with lower reimbursements. Any good news?”
Answer: Upon receipt of the above question, I sought the advice of trusted tax confidant, Bryan Koshers, CPA, of Koshers & Company CPA’s LLC . Bryan sympathized and provided the following:
With: (1) personal income tax rates on the rise and top earners expecting their top marginal rate to be 39.6% up from 36%; (2) capital gains rates increasing from 15% to 20% in 2011; and (3) starting in 2013 people earning more than $250,000 expecting to pay another 3.8% on their investment income (dividends, capital gains, interest, annuities, etc), things aren’t looking great. However, there are a few freebies being offered by Uncle Sam, specifically:
HIRE Act: President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act in March 2010, providing businesses with payroll tax relief. Payroll tax forgiveness applies to wages paid to covered workers who are on the employer’s payroll after March 18, 2010 and before January 1, 2011. The covered employee must begin employment after February 3, 2010 and before January 1, 2011. The HIRE Act may also allow employers to claim a worker retention credit for qualified employees.
Small Employer Health Insurance Credit: A business must have fewer than 25 full-time workers or the equivalent (part-time workers hours can count) and pay an average annual compensation for employees not greater than $50,000. Starting in 2010 and through 2013, Employer’s can claim a tax credit for health insurance, up to 35% of premiums paid (depending on certain criteria). After 2013, employers may be able to claim a tax credit up to 50%.
Bottom line: there are incentives out there that if taken advantage of will benefit your practice monetarily. However, these incentives are not always simple to receive and Uncle Sam puts strings on his carrots, making them difficult to reel in. You want to make sure you are working with the right team that has experience optimizing incentive programs and making the most of your practice set-up.
Bryan Koshers, CPA may be reached at (516) 481-1515 to discuss how you and your practice can better take advantage of the new tax developments. Bryan Koshers, CPA is a healthcare accountant, specializing in representing healthcare practitioners and their practices in all personal and professional accounting needs.
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contact Jennifer Kirschenbaum at (516) 747-6700 ext. 308 or at Jennifer@Kirschenbaumesq.com. Click here to access prior healthcare email newsletters or articles.
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