Employers who need a high percentage of premiums related to providing employer group health insurance for their workers may qualify for the 2010 small business health insurance tax credit and can claim this credit on their 2010 tax form simply because they have met a certain amount of premiums which must be paid to keep health insurance for their workers. This health insurance tax credit was passed in the hopes of not only offering some small businesses the opportunity to implement some form of health insurance for their workers, but also as a way to keep current employers who are offering health insurance in a position where they can continue to afford doing so.
Obviously, there are a great deal of mixed emotions concerning health insurance and new health care laws which are set to be implemented in the near future, but when it comes down to a business level, there are simply some employers who cannot afford to provide health insurance for their workers due to premium costs. For this reason, this health insurance tax credit was implemented and is available to small business employers who, according to IRS guidelines, have fewer than 25 full-time equivalent employees for the 2010 tax year, and pay an average annual wage to those employees of less than $50,000, as well as meeting certain requirements related to paying these premiums under a qualified arrangement.
According to the IRS website concerning FAQs for this tax credit, this qualified arrangement means,“Only premiums paid by the employer under an arrangement meeting certain requirements (a “qualifying arrangement”) are counted in calculating the credit. Under a qualifying arrangement, the employer pays premiums for each employee enrolled in health care coverage offered by the employer in an amount equal to a uniform percentage (not less than 50 percent) of the premium cost of the coverage.”
Understandably, not all employers may be able to qualify for this health insurance tax credit, but it’s hoped that as more health care legislation comes into play concerning options that businesses may have when providing health care coverage, not only will these employer health insurance claims become more affordable, but more companies will be able to offer the health insurance that their workers rely on.
Yet, there is still numerous officials who are divided on new health care legislation and even claim that this health insurance tax credit is promoting businesses to stay small. Obviously, companies who do qualify for this health insurance tax credit are smaller corporations or businesses, and those who are relying on this tax credit to find affordable options for providing health insurance simply cannot hire more workers as they will then be disqualified from claiming the tax credit in the coming years.
However, despite the fact that there are still businesses who are struggling to provide insurance for their workers, this tax credit which is currently available can lessen that burden for qualifying companies and, hopefully in the coming years, allow these businesses to retain current health insurance policies or implement new health care coverage plans where there previously were none.