Small businesses who are in need of health insurance or wish to continue providing health insurance opportunities for their workers may still be able to claim the small business health insurance tax credit which was implemented last year but will also be available in 2011. Business owners do have options when it comes to writing off premiums, up to a certain percent, which can make providing health insurance opportunities for their workers more affordable.
Obviously, plans through employer group health insurance can be greatly beneficial for workers as this can offer a great deal of coverage in terms of medical expenses or costs if a sudden illness or injury arises. Yet, the simple cost of providing health insurance to workers has been too much for many companies and, as a result, these corporations and businesses have either asked for their workers to shoulder more of this expense, have eliminated health insurance plans or not offer them at all.
Yet, this health insurance tax credit for small businesses can, again, be quite affordable for employers due to the fact that they can lower some of the cost that they must meet when paying deductions, as this tax credit is said to be extended throughout 2011 and further. Typically, companies who qualify for this particular small business health insurance tax credit are those who have fewer than 25 workers and do not pay these employees more than an average of $50,000 per year.
Understandably, small businesses that have a small number of workers may have to meet higher costs when it comes to providing health insurance due to the fact that insurers see that the risk will be spread out over a small number of individuals, plus this could increase the likelihood that they may have to pay out a higher percentage when a claim is made when compared to the percentage of money they take in.
While this tax credit is still available for businesses to either help start the process of offering health insurance to their workers or continue to offer insurance, there are those who feel that this tax credit is only available if businesses stay small and offer their workers a smaller wage, and for some companies, this tax credit may not be as helpful as it would seem. Obviously, small business owners are prompted to research how the tax credit would affect their business if they provide health insurance, where an insurance policy is not already in place, but again, it’s hoped that in 2011 the small business tax credit will help more companies provide health care coverage for workers so that out-of-pocket costs for medical treatment will not fall solely on the shoulders of employees.