Small businesses who provide healthcare assistance through insurance plans have options through the government credit for premium payment assistance as a tax write-off when an employer averages 25 full-time employees who collect an annual salary of no more than $50,000 per year. This tax credit which was implemented in 2010 was hoped to bring about more affordability for small businesses who may have to meet at least 50% of the costs associated with health care coverage for their workers, as many of these organizations simply fail to provide health insurance assistance to their employees due to affordability issues.
Yet, businesses are still being made aware of this tax credit which is set to be helpful to companies over the coming years and in 2014 this tax credit incentive, which is currently worth 35% of premium costs a small business pays, will increase to 50% for those who qualify. However, health insurance reform has obviously been a major issue that not only small businesses have faced but many individuals have been concerned about as well.
Concerning this small business health insurance tax credit, there are opportunities for these companies to gain aid with their premium costs that may be burdensome, yet there are arguments that various aspects of health insurance legislation and even this health care tax credit can cause businesses to either avoid hiring more employees or, if businesses are required to provide health insurance for their workers, it may prompt these companies to either cut workers or simply pay the penalty for not providing insurance as it could be lower in cost than meeting premium requirements from an employer group health insurance plan.
While there are many who feel that health care reform is needed despite recent legislation introduced to overhaul the health care system, many businesses are unsure of what costs may arise if they hire new workers and are then required to provide health insurance or if they take advantage of this health insurance tax credit these companies, again, may simply keep their workforce small so that they do not forfeit the option of receiving a credit related to health insurance costs.
There are still arguments in place concerning health care legislation and costs that small business owners must meet when providing health insurance for their workers, but this IRS health insurance tax credit for small businesses is available for the 2010 tax year for companies who qualify because they may have a small workforce and must meet high deductible costs on health insurance provided to their workers.