TERRE HAUTE —
Dear Small Business Owners:
Tax season is upon us again. With 2012 in the past, what is going to happen in 2013? Our Congress still has many decisions to make regarding taxes and the impact they will have on both large and small businesses. A few things looming around the corner:
1. Affordable Care Rules are honed in on. The Patient Protection and Affordable Care Act (“Obamacare”) was enacted in 2010. The Act does not impose any mandate on health coverage until 2014, but you will begin to feel the pressure of the taxes beginning this year. This is because two additional Medicare taxes come into play:
A. A 0.9 percent additional Medicare tax on earned income from wages or self-employment. The tax applies to earnings over $200,000 for singles or $250,000 for joint filers. This tax on high-earners will start to be felt later in 2013 as wages, bonuses, and business earnings start to exceed these limits.
B. 3.8 percent additional Medicare tax on net investment income. This tax applies to the lesser of net investment income or modified adjusted gross income over $200,000 for singles or $250,000 for joint filers. This tax applies to income from passive investments, such as returns to “silent partners.” It does not apply to income from a business in which an owner actively participates.
2. Do you write your company vehicle off? The IRS will begin analyzing in more detail writeoffs for company vehicles. Recently a report was completed on employment tax compliance and its conclusions indicated that some companies are not reporting employee use of company vehicles.
3. Same Sex Married Couple’s Tax Status will be settled. Currently the Supreme Court is listening to a case to determine if same sex couples are entitled to the same benefits as married heterosexual couples. The decision is expected this summer and will most likely also have an impact on benefits offered through companies to their employees and their spouses/partners.
4. How to form? Are you changing your status? It appears that a shift is taking place from S to C Corporation. The shift is directly linked to the JOBS Act of 2012 and related to the ability to obtain financing through equity crowd funding.
There are so many more trends coming in 2013. As a small business owner, be sure you work with your accountant to understand the impact that each of these may have on your company. The better you understand the trends, the better you can leverage the knowledge to provide a solid foundation for your company and better work environment for your employees and hence increased production and revenue.
Heather (Penney) Strohm is the regional director for Indiana State University’s Indiana Small Business Development Center.
Business
Business Cents: Businesses should watch for tax changes
- Business
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22-hospital St. Vincent Health cutting jobs
INDIANAPOLIS — One of Indiana’s largest health systems says it’s cutting an undisclosed number of jobs by June 30 because of increasing economic and competitive pressure on the health care industry.
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Duke Energy gives $10K to Wabash Valley Red Cross for Vigo flood relief
Duke Energy is giving $10,000 to the Wabash Valley Red Cross chapter for flood relief from this spring’s heavy rains.
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‘500’ gas stations being sold to Speedway LLC
After several decades in business, the area’s familiar “500” gasoline stations and convenience stores will soon be missing from the roadsides of Vigo and Sullivan counties.
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Business Cents: Customers and companies: Sugar goes further than vinegar
Working with companies for more than decade I am still shocked to learn how not only companies react to customers but also how rude customers can be to companies.
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SOCIAL SECURITY: Can’t work because of disability? Let us help
Disability is something most people don’t like to think about. But if you’re not able to work because you have a disabling condition that is expected to last at least one year or result in death, then it’s a subject you may not be able to avoid.
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Naysayers should treat good news as good news
I like to complain as much as anybody else. In truth, I may do more than my share of finding fault and wagging a finger in warning. Nonetheless, I’m tired of commentators (including many economists) who find nothing good and only the darkest clouds for the past few months.
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All mothers appreciate extra help
Think of all the times and ways that your mom has helped you over the years — when you were a child, and after you became an adult. With Mother’s Day upon us, now is a good time to pay mom back with a little Extra Help — with her Medicare prescription drug costs.
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Upcoming meetings
The Terre Haute Chamber of Commerce is hosting a health care reform seminar for businesses from 2 to 3:30 p.m. on Tuesday at Old National Insurance at 925 Wabash Ave., suite 200.
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Indiana ranked best place to do business in Midwest
Indiana was ranked as the best place to do business in the Midwest and the fifth best nationwide in a survey of more than 500 chief executives by Chief Executive magazine.
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First Farmers rated among top 100 community banks
First Farmers Bank & Trust of Converse was named one of the 100 top-performing community banks for 2012 by SNL Financial.
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Newsmakers: May 12, 2013
Employer Support of the Guard and Reserve has recognized John Thompson, president of Thompson Thrift Construction, and Paul Thrift, president of Thompson Thrift Development, as “Patriotic Employers.”
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On the Move: May 12, 2013
Stacey Joseph, a realtor in Terre Haute, has earned the Certified Residential Specialist designation by the Council of Residential Specialists, the largest not-for-profit affiliate of the National Association of Realtors.
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Chamber lauds four with Business Recognition Awards
Congratulations to our Business Recognition Awards winners! Our Awards Luncheon at the Meadows Banquet and Conference Center was a great event to wrap up Business Recognition Week, sponsored by Union Hospital. At the Luncheon we recognized four local businesses as the 2012 Business Recognition Award winners:
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ISU students provide detailed grocery analysis
As the National Cooperative Grocers Association makes business decisions in the coming years, the organization likely will take into account an analysis of some of its competitors – about 4,000 of them.
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Construction firm holding grand opening in Marshall on Friday
Construction, H&H LLC is holding a grand opening and Marshall Chamber of Commerce ribbon cutting ceremony on Friday at 812 N. Second St. in Marshall, Ill.
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AP Source: Subaru to expand Indiana plant
Subaru plans to expand its Indiana factory and add workers to build the Impreza small car in 2016, a person briefed on the matter says.
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Transit proposals can prove to be game changers
After baseball, my favorite TV watching is the government channel. Here I can see the local government in action or local government inaction.
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On the Move: May 5, 2013
Melissa Schollaert, RDH, HHP, has been added as a counselor of holistic health and nutrition at The Maple Center for Integrative Health.
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ISU set to offer financial planning program in 2014
When Indiana State University junior Jennifer Groth began scheduling classes last semester, she planned them out by thinking of an academic program the university does not yet offer. Groth will be one of the inaugural students in the financial planning program that ISU will begin to offer in spring 2014.
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Newsmaker: May 5, 2013
Gov. Mike Pence announced the appointment of Jessica Robertson to commissioner of the Indiana Department of Administration, a role she will begin on Wednesday.
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U.S. Postal Service opens village office in Worthington
The U.S. Postal Service officially opened the 40th Village Post Office in the Greater Indiana District on Monday in Worthington.
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How consistent is your business?
There are six areas in which consistency is critical in the majority of companies. Too often, business owners feel as they are “chasing down” rather than “leading it along.” If you can get a high level of consistency with your standards and practices, then your company will benefit.
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Good time to try Spanish online service
Cinco de Mayo is May 5 — a time to celebrate Mexican heritage and pride. Why not join the celebration by visiting Social Security’s Spanish website, where you’ll find a number of useful services and a wealth of information in Spanish.
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First Financial’s net income up 3 percent
First Financial Corp. has announced results for its quarter that ended March 31. The Corp.’s net income increased 3.4 percent to $7.7 million, compared to $7.4 million for the same period of 2012.
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Curtain goes up on new theater owner
The Indiana Theatre in downtown Terre Haute is under new ownership with a new purpose.
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Indiana Theatre SOLD!
The Indiana Theatre at 683 Ohio St. is sold.
Rob Lundstrom, who owns the Copper Bar and Louise’s, took possession of the historic downtown theatre on April 25. -
Higher education completion rates questioned
Spring is really here. Baseball is being played, the Cubs are already tragic and Faye of the Forest reappeared on the back deck. She was parked on the railing as I sat down to write this column.
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Vectren Corp. awards $2.3 million in grants
Vectren Corp. has announced that it awarded more than $2.3 million in 2012 through the Vectren Foundation and corporate contributions.
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Hard work, good attitude produces success
Like clockwork, Indiana State University graduate Joe Evelo regularly provides monthly updates to the first client he signed up when he started his financial investment career more than 35 years ago.
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On the move: April 28, 2013
Old National Bank has promoted Howard Mills to vice president, mortgage loan originator.
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