How the Affordable Care Act Could Affect Small-Business Taxes

Small-business taxes are about to become significantly more complicated thanks to the Patient Protection and Affordable Care Act (PPACA). Understanding and planning for these changes now instead of later will give your small business a competitive edge in the coming tax years. 

Because of PPACA, small-business owners need qualified accountants more than ever before. If a career in accounting interests you, then now is a good time to find out more about available online graduate tax programs. The IRS has a good resource center for more in-depth exploration, but it's no replacement for a qualified accountant.

The PPACA Contains No Mandate for Small Businesses

All small businesses with fewer than 50 employees are exempt from any employer responsibility requirements. They can take advantage of tax credits and health insurance exchanges if they want to offer coverage.

Starting in 2015, businesses with over 50 employees that either do not offer coverage or do not offer “affordable” coverage will have to pay a fine.

· In businesses with more than 50 workers, the employee's share of the premium for his or her own policy should cost no more than 9.5 percent of his or her wages. If the employee's share of premiums exceeds 9.5 percent of wages, then the coverage is not considered “affordable.” Businesses can offer insurance for family members, but employee contributions toward those policies are not subject to the 9.5 percent premium cap.

· Businesses with more than 50 employees that offer no health insurance will pay a $2,000 fine for each employee after the first 30. For example, if you have 53 employees, you will pay $2,000 x 23, or $46,000, if one of your employees receives a tax credit for buying insurance through an exchange.

· Businesses with more than 50 employees that do not meet the 9.5 percent requirement will also pay a penalty. These companies will pay $3,000 for every employee that purchases individual coverage through a health insurance exchange and receives either a premium tax credit or a cost-sharing reduction.

Tax Credits Small Businesses Can Get for Offering Health Insurance

Small businesses meeting the following requirements are eligible for a tax credit to offset the cost of purchasing health insurance for employees:

• Employ fewer than 25 full-time employees. Workers count as full-time if they work 30 or more hours per week. Two part-time workers is the equivalent of one full-time worker under the law. Seasonal employees can work no more than 120 days per year or else they will count as part-time workers.
• Pay average annual wages of $50,000 or less
• Contribute 50 percent of total premium cost for employees

Currently, small businesses are eligible for a tax credit of up to 35 percent of their contributions toward employee premiums. In 2014, the credit rises to 50 percent of contributions as long as insurance is purchased through state insurance exchanges. The 50 percent credit is offered for two years.

Tax Planning Issues to Talk Over With Your Accountant

When you're deciding what you want to do about offering health insurance, these are some questions that you should address with your accountant:

• How many employees should I hire? If you're near the 50-employee cutoff, then you may want to make sure that you have no more than 50 employees to avoid penalties. Also, you may want to be careful to limit your seasonal employees to 120 days. 
• Will I benefit from purchasing employee coverage from state health insurance exchanges? Combining the tax credit with potentially lower premiums from the state health insurance exchange may lower your overall costs. Alternatively, a private insurance option may be more affordable. 
• Should I offer coverage if I have more than 50 employees? Your accountant can calculate whether coverage would cost more than the penalty for not having it. You'll also need to weigh whether insurance is an important benefit for hiring and retaining employees.
• What procedures should I change? Work with your accountant to adjust your HR and payroll procedures to meet the new reporting requirements.

Finally, tell your accountant that you expect to be kept informed about changes in the health care laws. In all likelihood, the law will undergo changes and modifications as it rolls out. Working closely with your accountant to navigate the changes could save your small business a significant amount of money.

About the Author: Gary Robertson, M.A., C.P.A., provides tax planning services for small businesses.

How Credit Makes the World go Round

Wipe our Debt (Photo credit: Images_of_Money)

Way back before everyone carried little plastic cards in their wallets instead of cash, the saying was money makes the world go around; not so anymore. You and I are not the only ones who seemed to be enslaved by credit. The biggest user of debt is the US Government itself.

How it Works

Just about everybody is aware that our country is trillions of dollars in debt, but not everyone knows how our government keeps functioning under that debt load. Creating more money is not the answer. If our government creates too much money inflation runs rampant. Instead of paying four dollars at the market for a gallon of milk you end up paying 24 dollars instead. Our government keeps working because of their ability to borrow from other countries, primarily China and Japan. 

If not for the trillions of dollars borrowed from these two countries our country would indeed come to a complete halt. We borrow money by issuing US Treasury notes and bonds. China, Japan, and other countries buy these debt instruments for the interest we pay them every few months. When the bonds and notes mature they’re either rolled over into new Treasuries or we pay the principle amount back in cash. Most Treasury Securities mature every 5, 10, 20, or 30 years. In most cases our government strives to roll the debt over into new long term debt so they don’t have to come up with the cash to pay out.

The Cost of Bad Credit

Most people now days are familiar with their credit score and how it impacts your ability to borrow and the interest rate they receive. If you have poor credit the amount you are able to borrow suffers, and the interest rate you can borrow at rises. The same goes for our country. For many decades our countries credit rating has been the very best; AAA. That makes the US just about the safest country in the world to borrow from. Due to our current economic problems our country’s credit rating has suffered. 

Standard and Poor’s, one of the primary credit rating agencies in the world downgraded the United States debt from AAA to AA with a poor outlook. They have since changed the outlook to stable but have kept their rating at AA. So what does that mean for our government? In order to attract enough investors (like China and Japan) our government has to be willing to pay a higher interest rate due to the increased risk of borrowing from a country in financial and economic turmoil.

Just like the average citizen, as their credit score improves or disproves, the interest rate they are able to borrow at rises or falls. The amount of money you can borrow will also go up or down depending on your credit score.

What if You Can’t Borrow

If your credit score falls too low you lose the ability to borrow money at any rate because the risk is considered to be too great. If you can’t borrow what do you do when there is a financial emergency? Fortunately for most people there are finance companies that give payday loans, personal loans, and car title loans, to name a few. Those are all high interest rate ways to borrow money no matter how bad your credit may be. 

Unfortunately for our government it’s not so easy. It is vital to our country’s economy that our government is able to borrow what it needs to keep functioning and hopefully one day someone will come up with a way to significantly reduce our country’s debt.

Smith is a professional blogger that provides financial information on savings and loans. He writes for InstaLoan.com, a leading title loan lender.

6 Habits Which Will Never Let You Fail in Budgeting

It is the fact that one of the best ways to become rich is control your daily budget instead of just focusing on any getting-rich scheme. However, if you want to have few actionable, valuable, and the most beneficial advices for getting smart with your money, let us share some fruitful tips to achieve this goal. 

1. Set Your Budget Limits for a Simple Life:

Keeping lots of cars, bungalows, high-cost security cameras, highly paid workers, etc. are not the guaranteed tools to satisfy you. It may be possible that you feel still much stressed and tensed. Therefore, it is always better to just define your budget each month and spend as per schedule. This will never let you spend more or less.

2. Evaluate Each Expense:

You should not invest your hard-earned money on bobbles and bling. If you are going to purchase something, just think for a while that how long it will benefit you. You need to understand that buying expensive wearable, accessories, etc. are not going to last for many years for sure. Therefore, just reduce spending money on such expenses. 

3. Stop Impressing Others:

This is where almost everyone lacks. Instead of spending on the most necessary items, we spend on foolish and unnecessary things just to impress others. There is nothing bad in purchasing a used car, wearing a bit old shoes, or working some extra hours on your job for the sake of overtime. These are very few things, which may matter to others but not to you if you really care for your budget.

4. Avoid Too Much Debts:

It’s not necessary to take up each type of debt except those, which return you more. For example, if you or any of your children is studying in some school or college, you can ask for loans in such a case. This is guaranteed that you will have more return back after completion of their studies. Similarly, medical education loans, university education loans or real estate loans are those few valuable loans, which will be beneficial. Moreover, you do take loans for car or your house, which are not really necessary. Thus, try avoiding them as much as you can.

5. Quickly Get Rid of Major Debts:

Managing your budget is more important than wasting it. Just focus on your expenses and the entire budget to know where the money goes. Big debts will be more common in all that. Take yourself completely out of all those large debts, which you have not been paid yet. Generate large amount to pay them back as soon as possible. This is because you actually are making someone else richer while making yourself poorer than before. 

6. Invest Your Time Wisely:

Instead of reading sports news on newspaper, try reading some valuable news and reports related to money investment in some books. Similarly, watch some good news channels regarding money investment instead of watching a time-wasting episode or movie. Do meet business experts, who are successful in their fields to take their advices. It is all about not wasting your time and managing your budget by using your valuable time properly. 

Final Words:

Creating a good budget is the foundation of any solid financial plan, no matter what do you do or how much you earn. As long as you know where you spend your money, it is easier for you to save some for rainy days.

Author’s Bio:Brian Culver is a classic car collector and leading journalist for a car purchasing website. Save money by checking out their car buying calculator section where you can re-calculate your monthly payments by changing your loan information.

Great British Drives

Those seeking the ultimate driving experience know a good road is essential. A drab, city road isn’t thrilling; you’re surrounded by pollution, dirty congested streets and traffic. It doesn’t entice or allow you to drive for pleasure. Get away from the city and find a thrilling road to experience. If you have no idea where to start, here are a few suggestions;

The Evo Triangle

Located in Wales, this route gets its name from EVO magazine, which uses it to test drive new cars . The triangle possesses every challenge needed to justify praise and criticism; it’s a 20 mile long playground for those looking to epitomise the thrill of the driving experience. The triangle is made up of three distinctive roads. The A5 is a long, relaxing straight through the serene countryside. It allows you to enjoy your cars power and take in the environment before you turn onto the A543. Stark, rugged moorland surrounds you and you’re tested by a plethora of challenging bends and exhilarating straights. The B4501 is the last leg and presents sweeping bends through a beautiful dense pine forest and views of the Llyn Brenig Lake, followed by some surprising sharp turns that will leave you re-joining the A5 and flooring it back to the A543.

The Cat and Fiddle

Buxton. Easy enough, until you turn onto the A54 and undertake a challenging series of rising, sharp bends, before driving onto flat, fairly straight moorland to a panoramic altitude of 1,690 feet. You then descend to Macclesfield via a continuous series of sharp, often blind, bends. It’s a short drive but don’t let that put you off. The A537 is classed as one of the most dangerous roads in the UK due to its constant, challenging bends. Technical skill is needed; the Cat and Fiddle needs to be shown respect. It is a petite, but unique, adrenaline boosting beast of beauty you will be proud to saviour and conquer. Don’t miss out.

The B3135

You approach the B3135 via the idyllic, tourist village of Cheddar before entering the stunning Cheddar gorge. The gorge was created by the rivers of melted glaciers carving into the earth and limestone rock, creating an icon of nature you can drive through. Over this 14 mile experience you drive besides dramatic, 450ft high cliffs. Claustrophobic, the road squirms un-expectantly, like a snake you’re chasing. Corners are so sharp the large, ancient rock faces feel like obstacles moving towards you. It’s an exhilarating ride, like you’re caught in the rivers that formed it. A warning; don’t take your eyes off the road, no matter how beautiful the gorge is, or you might find yourself struggling to keep your head above the water. The gorge then gives way to the countryside; sweeping bends and long straights allow you to press the accelerator and burn up your adrenaline.

Don’t miss out. Go enjoy a great British drive.

Traveling in Times of Crisis

Travel Guides (Photo credit: Vanessa (EY))

During the period of financial crisis traveling is not easy and that is not good for many countries in which the tourism sector, is one of the most important. People still want to travel but are more reluctant to do so because of the current crisis hitting Europe in general and more particularly countries like Portugal, Italy and of course Spain. Of course this crisis causes problems to all over the world or it will in the near future.

Due to the current situation there have been many questions tourists have made, such as whether to save rather than traveling or is it better not to travel at all as this usually involves excessive spending on many occasions.

There are many deals on offer in travel agencies and wrapped packages made to consume, but this is not to everyone's liking, since more and more tourists like to choose what type of accommodation, flights, dates or days will travel. So there have been many alternatives to travel in order to save more. One could point out a way to move between neighboring countries or within the same country, for those who like to travel by car but not wishing to have the option to share car. This medium is unknown for many but very effective and very safe also, you pay a price per trip, depending on the length of it and there is no concern.

For trips where the destination is not so close, we all know the famous company Ryanair which is cheap and with a multitude of destinations. Make you sure you have an international travel insurance that covers all your needs and pocket. What is left to do is choosing accommodation and for that there are many deals if you are looking for an alternative to standard hotels and usually the price does not reference quality. To find a property to the desired extent you can do your research online where you can find different types of accommodation such as a room in a shared flat, an apartment or an entire house, as well as Bed and Breakfast, hotel-like accommodation with basic facilities for sleeping and breakfast.

With all the alternative media that exist today is hard to resist making a vacation or a trip without having to spend a large portion of the payroll. Thanks to these new ideas materialized in companies, we can save enjoying the pleasure of traveling.

3 Reasons Why It's Cheaper to Hire a Moving Company

Once the kids are out of the house and you no longer need the extra rooms, you may consider downsizing to a smaller home. Or maybe you desire a warmer climate or need to move to another state to start a new position for work. 

If you are preparing to move and are contemplating hiring movers, but aren't sure if it is less expensive to move and pack yourself, take a look at the three thoughts below. While DIY moving may sound less expensive, in most cases it's not.

Hidden Expenses of DIY Moving 

Often times when people are weighing the benefits of hiring movers over DIY moving they are so focused on the price of their estimate that they often forget all of the hidden expenses associated with moving your home yourself. 

Some of the hidden financial expenses are taking time off of work to pack and move, boxes and packing supplies, truck rental, and the often forgotten moving supplies, such as dollies, pads, and covers. 

Also take into consideration the impact on your social calendar as you make your DIY arrangements and purchase all of your moving and packing supplies. 

Last but not least, consider when the last time you moved was. Think of how much more stuff you have accumulated over the years, and how different you are physically since your last move. 

Even if you are 55 and in tip-top shape, moving a couch up from your basement can take quite a toll. Just make sure your moving company does not have any restrictions for moving the items in your home, like a piano or very fragile art, and that your home owners insurance covers loss and damage. 

Easier When Moving Long Distances 

Even if you enjoy road trips, moving long distances is an entirely different ball game. You have a large truck to maneuver, the truck is a gas guzzler, and you either have your car towed behind you or your spouse driving in the car—leaving you both driving solo. 

If you are moving a distance that takes you more than an hour away, hiring movers can prove to be far less expensive. Even when renting trucks you are limited to the size you can drive with a general driver's license. However, professional movers have commercial licenses allowing them to move all of your belongings in one trip instead of several small trips. 

This not only saves you time, it reduces your stress level. If you are moving out of state you can even let the movers drive while you hop on a plane to meet them at your destination. 

Helps You Stay Organized 

Staying organized while packing and moving is quite a difficult task, but not for professional movers. Movers understand the systems that need to be put in place when packing and moving your items. They will not only move your things to your new home, but they will make sure that each box goes to the appropriate room. 

If you will be packing your home before the movers arrive, make sure you understand what kind of system they would like to use to identify which room the box needs to go back into—such as color-coding the boxes that go in each room with different stickers. 

While the initial cost of hiring a mover may seem as if it is a significant expense, when you consider the factors above it is often times both financially and physically less expensive. When hiring a moving company, make sure you do your research to confirm that they are a reputable company. 

About the Author: Ace Barnes is a full-time freelance writer and researcher - he does a lot of research online, making it easy for him to share his expertise and gems of wisdom. If you're in the Dallas area, he suggests checking out North Dallas Moving and Storage for a free quick quote.