The definition of the Law, the Protection of small business 1996′
The law On the protection of small business work in 1996, is part of American law that increased the minimum wage requirements, simplified pension rules and adjusted taxes for small businesses. The act also made adjustments to s Corporation regulation, rules, safe Harbor provisions and rules governing a worker’s employment status. In addition, simplified administration and maintenance of 401(K) contribution plans, in order to make more employers want to provide this type of pension plan for their employees.
The law is one of several such acts, which were adopted by Congress and signed by the President in the years before and after, aimed at helping to make small business competitive employers relative to large firms.
Break, Small business job protection act of 1996′
The law On the protection of small business work in 1996, is an important part of the legislation, making it easier for small businesses in the United States to work and create jobs. In addition to increasing the minimum wage, this law significantly expanded the number of corporations that could benefit from the election of the Corporation, including the allowance of some banks and financial companies to become this type of Corporation. It also made it much easier for small businesses to offer 401(K) retirement accounts, which allowed them to compete with larger companies to attract employees with their benefits packages.
The law has several subparts. The first part makes changes to the Tax code (IRC) and increase up to $25,000 the amount small businesses for tax purposes costs. Second reduced from 40 to 35 percent the work opportunity tax credit, and extends and makes other changes to such credit, including redefining members of the target groups. The third part increases from 35 to 75 the number of shareholders of the Corporation permitted the firm, which enables large firms have become this type of person. This section also allows financial institutions to hold safe Harbor debt and permit certain exempt tax organization to become a Corporation of shareholders. The following section on pension simplification, including the articles concerning 401(K) individual retirement accounts and the ability for employers to match the retirement contributions of employees. Several other sections deal with foreign participation of small businesses and compliance with foreign tax.
The law also changed the minimum requirements on wages, increasing it from 4.25 $per hour for the time of $5.15 per hour (US Federal minimum wage had been increased in years), as well as compensation for overtime work are more generous for workers.