WorldWide Drilling Resource

72 DECEMBER 2013 WorldWide Drilling Resource ® Drilling Into Money Not Boring by Mark E. Battersby The Small Employer Health Insurance Tax Credit For many businesses, offering health insurance is critical to attracting the kind of workers they need to succeed. Fortunately, whether the drilling opera- tion presently offers health insurance or is merely considering offering it, there is a sliver of a silver lining in the form of a unique, often-overlooked tax credit for small employers. Any business that provides health care coverage is eligible for the Small Employer Health Insurance Tax Credit if, for the tax year, they have 25 or fewer full-time equivalent (FTE) employees who are paid an average annual salary less than $50,000. The tax credits are high- er the lower the average salary and the fewer FTEs the drilling business has. To take advantage of this tax credit, small employers (those with 25 or fewer full-time equivalent employees) must have an arrangement through which the drilling business can make a nonelective con- tribution on behalf of each employee who enrolls in a qualified health plan (QHP) offered by the employer. The contribution amount must be at least 50% of the QHP's premium cost. In addition, the average annual wages of the employer's FTEs cannot currently exceed $50,000. Through 2013, the max- imum credit is 35% of premiums paid by small business employers. For tax years beginning in 2014 or later, the maximum credit will increase to 50% of premiums paid by the business/employer. Certain higher-income individuals, specifically sole proprietors, partners in partnerships, or shareholders owning over 2% of the stock in an S Corporation, and any owners of more than 5% of other businesses, do not have to be counted as employees when calculating the average wage. And, again according to the Internal Revenue Service, spous- es are nevertheless excluded from the definition of employee . Since about 30% of employers in the small group market don't have plans running on a calendar year, newly issued rules mean premiums paid by the drilling business under the old plans - as well as what they are paying when they switch - qualify for the tax credit. What’s more, qualifying drilling busi- nesses are eligible to buy health insur- ance on a special exchange known as Small Business Health Options Program, or SHOP. Naturally, to fully understand all of the pros and cons of the Small Employer Health Insurance Tax Credit, professional assistance is strongly rec- ommended. Mark Mark E. Battersby may be contacted via e-mail at admin@ worldwidedrillingresource.com -32* &; = 3'.0* 1&.0 /('.768440< <&-33 (31 &00 86 35 9.6.7 86 &7 .57 .,,*5 2*: &2) 86*) '. 76 1&7 5 .; &2) 67**0 '3)< 7 0 & 6 3 4 ( 3 :35/39*5 7337- &2) '87732 '.76 *&5 0&: 855.(&2* &2) -314 1. 0 06 +35 (*1*27 1*7&0 &2) (31436.7* 408,6 5&, '.76 &2) /*00< '.76 !$" ! % # ! ! # Scientists Con rm Largest Volcano on Earth Adapted from a Press Release by The Consortium for Ocean Leadership The summer blockbuster movie Pacific Rim told the incredible tale of giant mon- sters rising from the deep in the middle of the Pacific Ocean. Now, scientists have confirmed the northwest Pacific is home to its own real-life giant. The largest single volcano ever documented on Earth has been discovered there. Covering an area roughly equivalent to the British Isles or the state of New Mexico, Tamu Massif is nearly as big as the giant volcanoes of Mars, placing it among the largest in the Solar System. Tamu Massif is located about 1000 miles east of Japan and is the largest feature of Shatsky Rise, an underwater mountain range formed 130-145 million years ago by the eruption of several underwater volcanoes. Read the rest online! To sign up for your copy call 850-547-0102, or e-mail: e-news@ worldwidedrillingresource.com