Thursday, November 06, 2008

Domestic Partners, Same Sex Marriage

You all have probably seen that it appears Prop 8 is going to pass. Did you know however that regardless of the passage of Prop 8 that if you have a Domestic Partner of one of your employees and they are paying their health insurance premiums through your group plan that the Federal government does not allow a deduction of the premiums from the Domestic partners income tax. In fact they will impute a cost on this. This is also true if you have a same sex marriage.
The state of California does allow a deduction.
I don't want to confuse the issue but I have found a number of small businesses treat the money the employee pays to the group plan for their employees and maybe children as if it automatically is pretax dollars. This is not the case unless you have a 125 plan or maybe a health reimbursement account set up.
Please consult your accountant on this and if you would like to receive information on how the Federal government imputes the tax please let me know.

Scott Hauge
President, Small Business California

Small Business California

Small Business California recognized San Diego Gas& Electric and Frank Spasaro for their efforts in implementing On Bill Financing for small businesses. The ceremony was at the Army Navy Academy in San Diego which was one of the first organizations to take advantage of On Bill Financing. They received from San Diego Gas &Electric a loan at 0% interest and have paid it back in about one year using the savings on their energy bill. They said had it not been for On Bill Financing they would not have been able to take advantage of the cost savings available to them by the retrofit.
Small Business California created this program in California. While San Diego Gas & Electric is clearly in the lead on this, PG&E and Southern California Edison have come on board and will also be implementing an On Bill Saving program.
You may not be aware that Small Business California has Intervener status at the California Public Utilities Commission and we have pushed hard move this program forward. We are also playing a major role Nationally in pushing for On Bill Financing and have been in discussion with the SBA about this. Hank Ryan our Executive Director has been incredible in representing us on this issue.
On another front you all are aware that Small Business California sponsored SB 869 which goes after businesses that are not providing workers compensation coverage for their employees. The second batch of letters have been sent by the Workers Compensation Rating Bureau to employers that were provided to them by EDD. As was the case with the first 500 letters sent 15% of the businesses that received these letters had no workers compensation coverage. It is clear that there is major problem in California with businesses literally breaking the law and hurting legitimate businesses that are playing by the rules.
I hope you agree that Small Business California is making a difference for small businesses in California. If you haven't done so already please join our organization. The cost is $150 for businesses with less than $1 million receipts and $300 for those over $1 million.We need your help to. You can find out what we are doing by visiting our website at
The application for membership is available on the website.
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188