The 2010 small business tax credit available on premiums which employers pay to provide health care for their workers has been used by some companies to either keep their current employer group health insurance or other health care coverage plan, and it has also prompted some small businesses to acquire health insurance for their employees. While some companies may have not have known of the tax credit in 2010, there are options for employers to claim this tax credit in 2011 and beyond.
Employer group health insurance plans are one of the more popular ways that businesses offer health insurance coverage for their workers, but some have simply been unable to meet the premiums which are required to cover a small workforce. Yet, the small business credit for health insurance can be claimed for 2010 through 2013 and any two years after that. The good news for some employers is that in 2014 the tax credit will increase to 50% of premiums paid by these eligible small businesses, so the affordability of small business health insurance plans may create more opportunities for workers to find the coverage they seek.
Presently, the health insurance tax credit in 2010 may be claimed for up to 35% of premiums that are paid by the small businesses who qualify. There are some companies who simply feel they cannot meet the premium costs associated with health insurance when insuring a small company, as insurers typically see these types of policies as more of a high risk for payout, and may levy higher fees with these plans.
Yet, for workers who must meet health insurance costs outside of an employer group health insurance plan, medical care can be quite expensive and for some this has led to a great deal of debt when an unforeseen emergency arose or medical treatment was needed. Obviously, workers who may insured do have personal health insurance options, but these too can be quite expensive and are usually not available for individuals who may not have the income to meet these costs.
However, small business owners who have employer group health insurance plans in place or who may not insure their workers have been prompted to look into this small business health care tax credit to see if they qualify, as again, this could reduce the amount of premiums an employer pays over the next few years and, obviously, offer the opportunity for these employers to either began or continue a health insurance plan for their workers.