July 17, 2013

Reminder: Missouri Small Business Deduction for New Jobs

Are you a small business with less than 50 employees?  Are you creating new jobs within your business?  If so, you may qualify for the Small Business Deduction for New Jobs.

Missouri provides a tax deduction for small business owners of $10,000 for each new qualifying job they create or a $20,000 tax deduction if that new job offers health insurance and pays at least 50% of such insurance premiums.

To be eligible:

  • The small business must have fewer than 50 full-time or part-time employees at all times during the tax year for which the deduction is requested.
  • A new job must be created: the number of full-time employees employed by the small business on the qualifying date exceeds the number of full-time employees employed by the small business on the same date of the immediately preceding tax year.
  • The new job created must pay a wage that matches either the county or state average wage (determined by the Department of Economic Development), whichever is lower.
  • The new employee must be a full-time employee, working an average of at least 35 hours per week for a 52-week period.

To claim the deduction:

  • The employee must complete at least 52 consecutive weeks of employment with an average of 35 hours worked per week.
  • The employee may not have been previously employed in Missouri by your small business or any business affiliated with the small business for a period of 12 months prior to the creation of the new job.

If your small business could qualify for this Small Business Deduction for New Jobs, act quickly.  The deduction is only effective for tax years ending on or before December 31, 2014.  Please contact your Anders tax advisor with any questions you may have.

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