Tuesday, June 08, 2010
Tax Credit Helps Small Businesses Pay for Health Care
From Butler University
Starting in April, millions of small businesses began to receive postcards from the Internal Revenue Service about the new Small Business Health Care Tax Credit.
Even if your business hasn’t received a postcard, you may still be eligible for this credit designed to help small businesses and non-profit organizations that pay employee health insurance premiums in 2010, says Bill Terando, a professor of accounting at Butler University. The credit was part of the health care reform legislation, the Patient Protection and Affordable Care Act, approved by Congress and signed into law by President Barack Obama in March.
The Congressional Budget Office estimates that the tax credit will save small businesses $40 billion by 2019.
For employers to be eligible, they must pay their employees’ health insurance premiums under a “qualifying arrangement”—i.e., in an amount equal to a uniform percentage (not less than 50 percent) of the premium cost of the coverage.
Read the full article here.
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