Health Care Reform Has Some Help For Small Businesses
2010 Health Care Reform includes tax credit for small businesses.
One of the benefits of the hard fought health care reform is a provision that becomes effective for small businesses this year.
I ran across this informative question and answer type article in the July 20, 2010 San Diego Union-Tribune newspaper.
It was of particular interest to me, since my business likely qualifies for this tax credit. My office is comprised of 3 locations, with 4 attorneys and 6 support staff. According to this article, the tax credit will apply to business of 25 employees or less, along with other requirements. We happily provide Kaiser-Permanente health HMO to our employees, and it appears that our firm will enjoy a 35% deduction of our health care premiums by way of a tax credit this year, and each year, until 2014, when the tax credit is increased. This will certainly help our office in lightening our tax burden, by providing us additional tax incentive to maintain our health care benefit to our valued employees. To be sure, I will be consulting with my tax professional (as any other small business owner should do) to make sure I comply with applicable tax codes before claiming this tax credit. Hopefully this tax credit will be beneficial to the small business community that have seen their health insurance premiums rise 113 percent over nine years, a growth rate of nearly 9% annually. (Per smallbusinessmajority.org )
Other, more in depth questions and answers, along with a tax credit calculator can be found at the following link:
http://smallbusinessmajority.org/hc-reform-faq/index.php#3d
John C. Colwell, Attorney at Law
San Diego, CA
877-663-3287
Member, Board of Directors, NACBA
National Association of Consumer Bankruptcy Attorneys (NACBA)
