Small Business Health Insurance Seeing Tax Breaks
April 2010
With much of the new health care bill legislation scheduled to begin in 2014, most people won't see any noticeable changes in their
medical coverage options for awhile.
However, small business is one notable and very well-deserved exception.
Starting this year many small business owners will be eligible for a tax break designed to incentivize their purchase of
small business health insurance for employees.
As it's related at CNN's article on
health care, in order to get the credit a business must have fewer than 25 full-time employees, pay an annual wage of less than $50,000 dollars, and cover at least one half of their worker's medical coverage premiums.
This credit amounts to 35% on small business health insurance premiums, and many employers and business owners will be notified in the coming weeks of their eligibility by the IRS.
If, however, you think you are eligible but do not receive notification from the IRS you may still be able to get the tax credit. Speak to an accountant about how to do so.
Keep in mind that there are a few restrictions. For example, the small business health insurance credit works on a sliding scale. The fewer employees you have and the lower your payrolls the more credit you'll get.
Facts on:
Small business health insurance credit works on a sliding scale.
Did you know...
The fewer employees you have and the lower your payrolls the more credit you'll get.
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By 2014 this same credit will be bumped up to 50%, meaning that the smallest businesses will enjoy a reimbursement from the federal government of up to half their medical coverage costs.
It is hoped that these incentives will make it easier for small businesses to insure their employees as well as draw new workers into jobs that previously didn't offer health insurance at all.
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