The Investing in American Workers Act (S. 2048) has been proposed to give employers a 20% tax credit. It would apply only to non-highly compensated employees (those with wages not exceeding $82,000). Small businesses (gross receipts under $5 million and no gross receipts in the prior 5 years) would be able to elect to use the credit as a payroll tax offset (rather than an income tax reduction). Chances of being enacted?
Barbara Weltman
Big Ideas for Small Business, Inc.
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