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America Outdoors Association

June 15, 2010

America Outdoors Association Bulletin

New Member Benefit – Free Business and Financial Guides from The Business Library

IRS Says that Family Members Who Work in the Business Are Not Counted as Employees or Eligible for Tax Credits.

New Member Benefit – Free Business and Financial Guides from The Business Library

In the Member Resources area of americaoutdoors.org you’ll find great reports from The Business Library.  Some of the topics in the 56 free reports include:

  • Solving Cash Flow Problems
  • How to Value a Business
  • 20 Ways to Build Your Retirement Fund
  • Auto and Equipment Leasing
  • Your Compensation and Benefits
  • Selling Your Business
  • Buy-Sell Agreements
  • Financing a Business
  • Business Continuity and Succession Planning
  • Renting and Leasing Properties

And there’s much more, including an extensive, 289 page Business Valuation Guidebook that covers 9 ways to increase a business’s value, goodwill and weighted values, and strategies for valuing a service business.  You would pay over $2,000 for the reports that are available to you free with your AOA membership.

How to Access the Reports

  • Log-in to the Member Resources page on the AOA site.
  • Only members who are current on their dues will have access to this area. 
  • You’ll need your user name and password. 
  • Click on the Business Library at the bottom of Member Resources. 
  • Set-up an account on the Business Library/AOA page. (you only have to do this once) 
  • Select the reports you want in the shopping cart.
  • Use the code AOA in the shopping cart when you check out to access the reports for free.  It takes only a moment and it’s worth it to get full, free access to the reports.

Call the AOA office if you have questions about how to access these reports.

IRS Says that Family Members Who Work in the Business Are Not Counted as Employees or Eligible for Tax Credits.

Many small businesses with fewer than 25 full-time employees (FTE’s) are eligible to receive a tax credit for a portion of employer paid health insurance premiums beginning this year if the premiums meet IRS qualifications.  Average wages must be under $50,000 for all qualified employees.  Some businesses with as many as 50 part-time employees may still qualify for some credit.  The rules are somewhat complex, so you will need to have your accountant help you determine what portion of your employer paid premiums qualify for tax credits.  According to the IRS rules, family members who work in the business are not counted as employees, nor do the premiums paid by the company qualify for the credit.

An excerpt from the IRS rule is provided below. 
To review the IRS FAQ about the tax credits go to:  http://www.irs.gov/newsroom/article/0,,id=220839,00.html
Here is what the IRS says about tax credits to family members employed in the business:

“14. Do family members of a business owner who work for the business count as employees?

A.  Generally, no. A family member of any of the business owners or partners listed in Q/A-13, or a member of such a business owner’s or partner’s household, is not considered an employee for purposes of the credit. Thus, neither their wages nor their hours are counted in determining the number of FTEs or the amount of average annual wages, and premiums paid on their behalf are not counted in determining the amount of the credit. For this purpose, a family member is defined as a child (or descendant of a child); a sibling or step-sibling; a parent (or ancestor of a parent); a step-parent; a niece or nephew; an aunt or uncle; or a son-in-law, daughter- in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law.”

Meanwhile the San Francisco Chronicle reported that Blue Cross/Blue Shield has increased premiums in California for small businesses by as much as 60%.  On June 7, Health and Human Services Secretary Kathleen Sebelius announced a new grant program providing $250 million to states over next five years will strengthen oversight of insurance premiums and rate hikes.

© Copyright America Outdoors Association, 2010.  All rights reserved.

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