September 2011 Financial Questions & Asnwers

Q: My business has 30 employees, but some of them work part-time. Will I be eligible for the tax credit on health care premiums?

A: It's possible. The 25-employee limit is based on full-time equivalent employees, so depending on how many employees are part-time, you may be eligible. Also, if any of your workers are seasonal, they are not included in the calculations unless they work more than 120 days in a year. Seasonal workers with 120 or fewer days on the job are also not included in the average annual wage calculation (another qualifying factor used to determine eligibility for the small business health care tax credit).

Q: I recently donated money to a disaster relief charity by sending a text message. What proof will I need for tax purposes?

A: Text message donations are routed through the cell phone company you use. The company forwards the amount you donate to the charity, and the charge appears on your bill. Therefore, the telephone bill showing the date and amount of your donation to the tax-exempt organization will serve as the proof you need.