Tax breaks for small businesses who provide their employees with health insurance have been an issue over the past months and, since national health care reform and repeal have been in the news as of late, there are many questioning whether health insurance tax breaks for small companies may be beneficial or whether any tax credits offered through the new health insurance laws are actually helping businesses overall. Obviously, health insurance has been a very highly debated topic over the past months, but there have been some who feel that health insurance tax credits available for small business owners who must meet a high percentage in premium costs have helped more companies either find affordable health insurance plans for their workers or continue offering health insurance options that are currently in place.
The tax credit that was recently passed allowing business owners to write-off a percentage of the money they paid towards health insurance premiums is felt to be beneficial for small businesses where an employer may meet a high amount in costs related to providing health insurance. Understandably, employer group health insurance plans at smaller companies may be more expensive due to the fact that there is a smaller number of workers over which the risk for these insurance plans may be spread.
Yet, there are arguments that these health insurance tax credits which are offered to small businesses are not beneficial in a general manner of speaking due to the fact that they are only benefiting companies who pay their workers a small level of wages. A report on CNNMoney.com made mention that some of the complaints against health care and, particularly these tax breaks, center around the fact that they are unhelpful since they are only targeted to businesses who have a small number of employees and, again, pay annual wages that are considered by many to be quite low.
Also, there are some arguments that companies who have a small number of workers may be exempt from new health care penalties when insurance is not provided and this could cause some employers to keep their hiring low and work force small. Yet, it’s hoped that health insurance exchanges which will soon become available from state to state will offer more affordability for small businesses who are looking to insure their workers, but may be unable to afford doing so at the present time. While the debate over the health care law continues, there are still tax credits available for a small businesses who may even want to continue offering coverage or are looking for affordable ways to bring about a health insurance policy for their workers, and, for those who qualify, these write-offs can be greatly beneficial to small employers when it comes to the cause they meet when paying deductibles.