The Internal Revenue Service will be sending correspondence to four million employers to make sure they’re up to speed on taking advantage of the credits provision in the health-reform act. Here’s what coming.
Included in the Patient Protection and Affordable Care Act is a tax credit, effective this year, that’s designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees in 2010. The credit is targeted to help small businesses that primarily employ low- and moderate-income workers. Here’s how it works:
- For tax years 2010 to 2013, the maximum credit is 35% of premiums paid by eligible small-business employers.
- The maximum credit goes to employers with 10 or fewer full-time equivalent (FTE) employees making annual average wages of $25,000 or less.
- Businesses that use part-time help may qualify even if they employ more than 25 individuals. The credit is completely phased out for employers that have 25 FTEs or more or that pay average annual wages of $50,000 or more.
- Eligible small businesses can claim the credit as part of the general business credit, starting with the 2010 income tax return they file in 2011.
Go here for more info and links from IRS.
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Tags: Internal Revenue Service, IRS, Patient Protection and Affordable Care Act, tax credit
April 22nd, 2010 at 1:55 pm
Vote out the incumbents and work to repeal this horrific piece of legislation.
April 22nd, 2010 at 3:15 pm
Will they be just as proactive each time a new Tax, Fee, or Surcharge goes into effect. 2,700 pages of pure garbage.
April 22nd, 2010 at 6:03 pm
What concerns me is that traditionally small businesses have driven the economic recovery train in the past. It is not alarmist to point out that, in passing such legislation, many small businesses will simply not be able to afford the insurance premiums, increased taxes (wait and see), and fines/increased fees. This will in turn put many more people out of work and force them into a position that they cannot afford health insurance. They will then incur fines and be driven further into debt. What a master stroke of legislation this is. I would like to place the blame on the politicians but the truth is we all know how self serving the vast majority of them are. This should serve as concrete proof that we are no longer represented as a people. Taxation without representation; sound familiar anyone?
May 21st, 2010 at 2:43 pm
Eric,
You only say it’s taxation without representation because it doesn’t represent your viewpoint. The fact is you have an elected representative and senators. And the people in congress who voted for this were representing the voice of the people with opposing viewpoints to yours. There will alway be people opposed to any piece of legislation. Just because you don’t like it doesn’t mean it’s taxation without representation.
As far as the rest of what you said, well, I’m a tiny business owner, and I provide group health and pay well over half of their single premium, and have for several years. So I can’t complain. It helps me, by making my competitors have to also.
September 1st, 2010 at 12:06 am
Jay,
If you understand the difference between a Republic (the type of Government that we are supposed to have) and a Democracy; then you would understand that it is absolutely taxation without representation. In a democracy the accepted norm is that the majority rules in any case. In a Republic the individual’s rights are assured regardless of the majority opinion. Our Government was originally formed with the Federal Government as the weakest member, followed by the State, and most importantly the rights of the individual. Our system of Government is now completely the opposite of what it was intended to be. This being said it can easily be pointed out that nobody’s (individual) view point is represented including yours. I suppose that what your are asserting is that since it is good for you, it should be forced on everyone? Check your stats again; the vast majority of the people are dead set against this legislation. The simple fact is that it violates every tenant of both a Republic and a Democracy. A Republic concerns itself with the rights of the individual over all and a Democracy requires the majority to agree to any piece of legislation. Neither of these have been met.
I am guessing that you have not read much of the legislation that you are assuming will be to your benefit. I would suggest that you read more of it as you are making statements that suggest you are unaware of the penalties that you yourself will soon face should any of your employees attempt to opt out of their plan and not obtain another form of insurance (without telling you). There is also a very good chance that your group insurance plan will not hold up to the federal guidelines and you will be heavily fined for providing an inadequate level of health insurance to your employees.
You, as the employer, will be required to sign your employees and each of their dependants up for health insurance. Any lapses of memory in this regard will incur a fine; even if you did not know that your employee had the dependant or was in any way responsible for them. Please read the bill as there are far too many issues than I ca possibly include in this post!