Big Government – Get Off My Back!

This isn’t just a catchy title; it’s also the name of a new law recently signed by the Missouri Governor. House Bill 45, signed by Jay Nixon on August 28, 2011, creates a Missouri tax deduction for each new full-time job created by a small business through December 31, 2014. To be eligible, the new employee must have an annual salary of at least the county average. If the county average is higher than the state average, then the state average may be used.

To qualify for the deduction:

  1. A business (and its affiliates) must have fewer than 50 full and part-time employees.
  2. New employees must work at least 35 hours per week over a 52 week look back period.
  3. New employees must complete 52 consecutive weeks of employment and cannot have been previously employed by the business or its affiliate(s) in the previous 12 months.

If the above requirements are met, businesses will be allowed a deduction as follows:

  1. $10,000 for each new full-time employee hired or
  2. $20,000 for each new full-time employee if at least 50% of their health insurance premiums are employer provided

The deduction is claimed on Form MO-NJD which must be filed along with the business’ MO income tax return.

Contact Anders if you have any questions on how this new tax law can benefit you.