On July 8, 2011, Missouri Governor Jay Nixon signed the Small Business Tax Relief Bill into law providing a possible deduction of up to $20,000 for a new hire. The law is designed to give tax relief to small businesses and help create jobs.
Under the new regulation, businesses with fewer than 50 employees may qualify.
For tax years beginning January 1, 2011, Missouri will grant an income tax deduction for a small business that creates a new full time job with an annual salary of at least the county average wage determined by the Department of Economic Development.
The definition of a full-time job includes an employee who works at least an average of 35 hours per week for a 52 week period.
If the above requirements are met, the business will be allowed a deduction of $10,000 for each new full-time job created or $20,000 for each full-time job if the business offers health insurance and pays at least 50% of the premiums. The tax deduction will be phased out after December 31, 2014.
For more on how this new tax change could affect your business, contact your Abeles and Hoffman advisor.