Tax Credits Launches Small Business Tax Credit Calculator

The Small Business Tax Credit Calculator, in production for the last three months, has been launched by Tax Credits, which manages and markets the technology in cooperation with Tekmark Global Solutions. The calculator, which the company points out is not an estimator, computes specific, complete and actual numerical data needed for qualifying small businesses to use in filing tax returns to take advantage of the Small Business Tax Credit (SBTC) created by the new Health Care Reform legislation called The Patient Protection and Affordable Care Act.

The calculator, built through the combined research and development by health benefits experts, accountants, attorneys and programmers, is designed to enable small businesses, accountants, tax preparers, payroll administrators and benefits professionals to calculate exact Health Care Tax Reform tax credit data simply, safely, securely and accurately, as well as reduce the cost, time and frustration involved in deciphering the complexities and definitions of the new reform legislation.

The calculator can be used by individual small business owners or multi-client professionals as it offers a defaulted Excel template for multi-licensees for ease in communications and data completion with small business clients eligible for the Small Business Health Care Tax Credit. Introductory pricing for the calculator ranges from $29.95 for a single company license allowing a small business owner to calculate his tax data to $595.95 for a multi-company license, which allows for the calculation of multiple returns by one user. Additional user agreements can be explored by contacting the company.

The calculations are computed through detailed algorithms based on more than 20 variables per employee; comparison of hours, days or weeks worked to calculate FTEs and best options; a company's specific health care components; required variances; state domicile premiums; and up-to-the-minute legislation requirements provided by HHS. Any additional clarifications or regulations issued by HHS will automatically be updated in the calculator's programming, enabling users to update their data prior to filing 2010 tax returns, a company release noted.

John Robbins, a practicing CPA prior to his current position as president and CEO of DataPath, a specialist in the development of software solutions for the employee benefits arena, said the calculator is comprehensive, instructive and accurate. "The team at TaxCredits has taken a very complex issue and distilled it down into a portal solution that is completely inclusive of all aspects and considerations confronting the small employer adviser or small business owner," he said. "Do not use an estimator when you can calculate the correct numbers."

Robert DiSerafino, CPA at tax and accounting firm DiSerafino Quinn & Co., said upon examination of running client data that the calculator is well-suited to reducing the complexity of gathering employee information and determining the tax credits. "It's a comprehensive, time-saving, income-generating tool for use by accountants and small businesses, alleviating the complicated gathering of employee benefit data," he said.