President Obama just signed the Tax Cut Act. As a small business owner, you may be wondering what this means for you. Here are a few key facts that the Intuit Online Payroll team pulled together:
An Employee-Side Payroll Tax Cut of Approximately 2%: The agreement includes an employee-side payroll tax cut for over 155 million workers – providing tax relief of about $112 billion next year. This translates to $1,000 in tax cuts for a worker earning $50,000 per year.
100 Percent Expensing: The agreement includes the President’s proposal to temporarily allow businesses to expense 100% of their investments in 2011, potentially generating more than $50 billion in additional investment in 2011, which will fuel job creation.
Extension of Unemployment Benefits: The agreement extends emergency unemployment benefits at their current level for 13 months, preventing an estimated 7 million workers from losing their benefits over the next year as they search for jobs.
1603 Renewable Energy Grants: The agreement extends the 1603 program, which is helping to support tens of thousands of jobs in the wind and solar industries.
If you would like to learn more details about these changes, check out more information released by the White House.
Note for Intuit Payroll Customers: Intuit has been actively working with government agencies to stay on top of the Middle Class Tax Relief Act of 2010 (H.R. 4853) and potential impacts to small businesses. We are aware of the compliance changes & are making timely updates to our services, including the new social security tax cut for workers. You can review additional details here.