- 1 -
|
Reset Form Print Form
Missouri Department of Revenue Department Use Only
Form Small Business Deduction For New (MM/DD/YY)
MO-NJD Jobs Under Section 143.173, RSMo.
Taxable Year Beginning Ending
(MM/DD/YY) (MM/DD/YY)
Missouri Tax I.D. Federal Employer
Number I.D. Number
Name of Small Business Social Security Number (Last 4 Digits)
Address City State Zip Code
Type of Small Business
r Sole Proprietor r Partnership r C-Corporation r S-Corporation r Limited Liability Company r Limited Liability Partnership
r Other Business Entity (Specify Business Type) __________________________________________________________
For all taxable years beginning on or after January 1, 2011 (if pass through entity, see special instructions on page 2), and ending on or before
December 31, 2014, if a small business creates new jobs, it may qualify to claim a deduction in the taxable year each new employee completes
at least 52 weeks of full-time employment. The deduction is equal to $10,000 for each new job created or $20,000 for each new job created by
a small business that paid at least 50 percent of all employees’ health insurance premiums.
The Small Business:
• Must employ fewer than 50 full-time or part-time employees at all times during the tax year for which the deduction is requested to
qualify for the deduction. Any small business affiliated with another business must consider each employee of all affiliated businesses
in determining if it employs fewer than 50 full-time or part-time employees. Two businesses are affiliated if either party has power
to control the other, or a third party controls or has the power to control both parties. For purposes of the deduction, a part-time
employee is defined as one who works fewer than 30 hours per week.
• Must be subject to income taxes imposed in Chapter 143, RSMo.
• Must ensure all new employees have completed at least 52 weeks of full-time employment prior to including them in
the deduction calculation. Upon completion of at least 52 weeks, the employee becomes a qualifying full-time employee and the
small business may choose a date to compare the number of qualifying full-time employees employed in the previous calendar year. See
the example below for further instruction.
• Must pay wages of at least the county average wage or the state average wage if the county wage is in excess of the state wide average. The
county average wage is calculated by the Department of Economic Development and can be found at:
https://meric.mo.gov/data/county-average-wages.
Qualifications • Must pay at least 50 percent of the health insurance premium for all full-time employees, not just for new employees, to claim the $20,000
deduction.
The Employee:
• Must complete at least 52 consecutive weeks of employment and work an average of at least 35 hours per week before the small
business may claim the deduction.
• May not have been previously employed in Missouri by the small business or any business affiliated with the small business
for a period of 12 months prior to the creation of the new job.
Example: A small business chooses November 1 as its comparison date. On that date in 2011, the business had 25 full-time employees
who had been employed for at least 52 weeks, and five employees who had been employed for 20 weeks. Also on that date, the business
hires two new employees who had not been employed by the business. If all these employees remain employed through November 1, 2012,
the small business is eligible to claim deductions for seven of its employees in determining its 2012 tax liability. Although five
of these employees had been employed prior to November 1, 2011, they would not qualify as full-time employees on that date
because they had not completed 52 weeks of employment. Although those five employees could have qualified for the
deduction prior to November 1, 2012, the two employees hired on November 1, 2011 could not. Because a small business can
select only one comparison date per year, the small business selected November 1, 2012 so it could claim the deduction for all seven
employees.
*14304010001*
14304010001
|