How businesses can save on health care
Tax incentives available soon
President Obama and Congress just passed major legislation overhauling our country’s health care system, and if you’re a small business owner there will be changes to the tax code for you to take advantage of over the coming months.
Chances are that if you run a small business, you know firsthand how much the cost of healthcare can impact your bottom line. Healthcare costs have risen over recent years, and it’s especially true for small businesses that don’t have the buying power of some of the country’s larger corporations. If you run or own a small business, here are some changes to the tax code that you may find useful:
- Small Business Health Care Tax Credit: This credit covers up to 35 percent of the total premium costs for a small business to cover its workers’ health care plans. It is effective immediately, and the credit is set to increase to 50 percent in 2014.
- Starting in 2014, small businesses and individuals will be able to purchase health care plans from a state-run health care exchange, offering plans with competitive rates from private health care providers.
- If you employ fewer than 50 people, you’re exempt from the 2014 requirement that you provide health care for your employees or face a fine of $2,000 per worker.
In today’s economy, healthcare is a major concern for employees and can impact your business’ ability to recruit top-notch talent. If you’re able to take advantage of these changes to the tax code due to health care reform law, you’ll be one step ahead of your competition.
Being debt free is another way for your business to stay competitive, especially when it comes to tax debt that can add up over months or years with interest and penalties. Our firm has helped thousands stay ahead of the IRS’s whip and resolve millions in tax debt, and can help you and your business thrive.