Many small businesses have been able to take advantage of a health insurance tax credit available to employers who must meet an excessive amount of costs related to employee premiums when a health insurance plan is offered within a small business setting. These small businesses have been prompted to take advantage of these tax credits as they can help with the overall costs that are paid throughout the year when it comes to providing health insurance for their workers, as this incentive was hoped to not only keep current employers from canceling health care plans, but prompt new businesses to acquire some form of health insurance.
Typically, this credit ranges from small businesses who may have 10 or less full-time workers whose annual wages do not exceed $25,000 to businesses that may employ 25 full-time workers who do not have an average salary of more than $50,000. While the percentage of this tax credit deduction is said to increase in 2014, there are still benefits for businesses who are currently beginning there tax preparation for the 2010 tax year, which obviously will be filed in 2011.
However, some self-employed individuals who have had to pay their own way may also be able to deduct costs related to their health insurance, as more consumers who are struggling to meet these premiums are finding that assistance has been made available through both tax deductions and a tax credit, when it concerns meeting premiums that may be quite costly for small companies or those who are self-employed. Individuals who can deduct their self-employment health insurance costs may be able to reduce their taxable self-employment income, which obviously can be beneficial for those who may have had to meet high cost related to insurance.
There have been some complaints about the small business health insurance tax credit though, as the self-employed deduction option is reportedly only for the 2010 returns, while again, the small business health insurance tax credit should be able to help businesses into 2014. Yet, the restrictions on this tax credit for small businesses have many of the mind that it is prompting companies to keep their workforce small so that they can find more affordability related to the premiums they must pay on insurance for their workers.
Obviously, there are ways which businesses have been able to cut costs related to health insurance, as this tax credit is not the only means that businesses are using to reduce costs when a small workforce is in place. Some companies have cut out certain areas of coverage which are not needed by their employees and there have also been incentives given to workers to simply become more healthier which could help certain individuals overcome specific ailments or conditions. While there are options for affordability outside of the small business tax credit that can be used to help business owners lower coverage costs, it’s hoped that companies will be able to use this small business tax credit to their advantage and continue offering their employees medical care coverage.