2013 is just days away. Even though Congress and the President have not come to a conclusion regarding the issue of expiring tax benefits, here are some last minute tax benefits Small businesses should take advantage of before the New Year.
A tax credit is available to small employers that pay at least half the cost of single coverage for their employees. Check with your account or tax preparer to see if you qualify.
The Work Opportunity Tax Credit for hiring qualifying veterans is scheduled to expire at the end of the year.
<br><br> The tax credit can range from $2,400 to $9,600, depending on certain factors, including how long the veteran has been out of work and whether they have a service-connected disability.
If you are considering offering a retirement plan for your employees, doing so before the end of the year could provide tax benefits. <br><br> Your business might be eligible for a $500 tax credit for the first three years of your plan to help defray setup costs.<br><br> In addition, any employer contributions to employee plans enjoy tax deductions, and a business owner can realize personal tax savings by contributing to a plan.
Small business owners may want to consider accelerating bonuses or other incentive compensation payments into this year if it appears that an agreement on the fisical cliff won't be reached by year end to extend the lower tax rates currently scheduled to end in 2012.