Small business owners in California are doing everything they can to identify cost saving opportunities, especially when it comes to health insurance.
As trusted advisors to many small business employers, insurance brokers know firsthand how rising health care costs not only put huge burdens on small businesses, they also weaken our economy and leave many Californians without the care they need and deserve.
The new federal health care law, The Affordable Care Act, includes several provisions designed to help small businesses pay for and maintain health insurance for their employees, including a new Small Business Health Care Tax Credit which provides a credit equaling up to 35 percent of the health insurance premium costs that a small business incurred for insuring its employees. To qualify, an employer must have fewer than 25 full-time equivalent workers and must pay average annual wages below $50,000.
In California it is estimated that more than 630,000 small businesses may be eligible for the credit.
For a small business owner who is struggling to maintain health coverage or is considering dropping their employees’ health insurance, the small business health care tax credit can mean a world of difference. It will provide the fiscal support they need to ensure employees continue to have access to health insurance which will keep them healthy and productive.
It is imperative that business owners work with their insurance brokers and accountants so they are aware of little known credits like the small business health care tax credit and others. While this is not a one size fits all credit, taking advantage of it can help many small businesses maintain a profit during these tough economic times and ensure a healthy, productive workforce.
For more information on the tax credit and other provisions of the health care law that are important to running your business, click here.