11-28-2011, 07:37 AM
Aparecium Deletrius Legil
Join Date: Apr 2007
Location: The Soprano State
Affordable Care Act Tax Provisions
Small Businesses and the Affordable Care Act ? Fact Sheets | HealthCare.gov
Small Business Health Care Tax Credit
This new credit helps small businesses and small tax-exempt organizations afford the cost of covering their employees and is specifically targeted for those with low- and moderate-income workers. The credit is 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. Learn more by browsing our page on the Small Business Health Care Tax Credit for Small Employers and our news release.
Small Businesses and the Affordable Care Act
You know the value of providing health insurance to your employees. But it can be a real challenge for small businesses. On average, small businesses pay about 18% more than large firms for the same health insurance policy. And small businesses lack the purchasing power that larger employers have. The health care law provides tax credits and soon - the ability to shop for insurance in Exchanges that help close this gap.
Top Things to Know for Small Businesses
If you have up to 25 employees, pay average annual wages below $50,000, and provide health insurance, you may qualify for a small business tax credit of up to 35% (up to 25% for non-profits) to offset the cost of your insurance. This will bring down the cost of providing insurance.
Under the health care law, employer-based plans that provide health insurance to retirees ages 55-64 can now get financial help through the Early Retiree Reinsurance Program. This program is designed to lower the cost of premiums for all employees and reduce employer health costs.
Starting in 2014, the small business tax credit goes up to 50% (up to 35% for non-profits) for qualifying businesses. This will make the cost of providing insurance even lower.
In 2014, small businesses with generally fewer than 100 employees can shop in an Affordable Insurance Exchange, which gives you power similar to what large businesses have to get better choices and lower prices. An Exchange is a new marketplace where individuals and small businesses can buy affordable health benefit plans.
Exchanges will offer a choice of plans that meet certain benefits and cost standards. Starting in 2014, members of Congress will be getting their health care insurance through Exchanges, and you will be able to buy your insurance through Exchanges, too.
Employers with fewer than 50 employees are exempt from new employer responsibility policies. They don’t have to pay an assessment if their employees get tax credits through an Exchange.
No Employer Mandate, Exempts Small
Firms from Employer Responsibility
The Affordable Care Act does not include an employer
mandate. In 2014, as a matter of fairness, the Affordable
Care Act requires large employers to pay a shared
responsibility fee only if they don’t provide affordable
coverage and taxpayers are supporting the cost of health
insurance for their workers through premium tax credits
for middle to low income families.
• The law specifically exempts all firms that have fewer
than 50 employees – 96 percent of all firms in the United
States or 5.8 million out of 6 million total firms – from
any employer responsibility requirements. These 5.8
million firms employ nearly 34 million workers. More
than 96 percent of firms with 50 or more employees
already offer health insurance to their workers. Less
than 0.2 percent of all firms (about 10,000 out of 6
million) may face employer responsibility requirements.
Many firms that do not currently offer coverage will be
more likely to do so because of lower premiums and
wider choices in the Exchange.
So Looman..... how many employees do you have? are you currently receiving tax credits? and lastly... are you a liar? or perhaps cheating?
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