Tax Updates

MO Small Business Deduction for New Jobs (SBDNJ)

For tax years beginning on January 1, 2011 and ending on or before December 31, 2014, the SBDNJ provides a deduction from income tax for new jobs created in Missouri. If your Company has created a new job, it may qualify to claim a deduction for the taxable year each new employee completes at least 52 weeks of full-time employment and that are paid an annual salary that meets the county average wage as determined by the Department of Economic Development, this is approximately $32,000 for Audrain County.

The deduction is $10,000 for each new job created, or $20,000 for each new job created by a small business that paid at least 50% of all employees’ health insurance premiums.

A qualified new employee must complete 52 weeks of full-time employment and work an average of at least 35 hours per week before including them in the deduction calculation. Employees may not have been previously employed in Missouri by your Company for a period of 12 months prior to the creation of the new job.

If you are considering, or have recently hired a “qualifying” new employee you may want to consider this for 2013 or 2014.