The following is our second part in our series of informational topics on the new Health Care Reform that recently was enacted.  While many of the provisions don’t take place for YEARS, some begin immediately.  Of those, new tax credits for small businesses begin in 2010.

The information below was provided by our colleague Tom Barrett, one of the principals of BBG, Inc.  BBG is a great resource for your company’s health care with their Shared Funding product.  BBG is dedicated to creating customized solutions to contain costs, drive better outcomes and get the most out of your organizations healthcare dollars.  Visit their website at sharedfunding.com to learn more about their approach and their fine company.

2010 health insurance tax credit for small businesses.

Details are starting to emerge.  The 2010 health insurance tax credit is aimed at encouraging small employers to offer and/or maintain coverage. Eligible small businesses can claim the credit starting with the 2010 income tax return they file in 2011.

Here are the key points:

• The credit is available to qualifying small employers that pay at least half the cost of single coverage.
• The maximum credit is 35% of premiums paid in 2010 by eligible small business employers (25% for tax-exempt organizations).
• The maximum credit increases to 50% in 2014 (35% for tax-exempt organizations).
• It is generally available to employers that have fewer than 25 full-time equivalent (FTE) employees paying wages less than $50,000 per employee per year.
• The eligibility formula is based in part on the number of FTE’s, not the number of employees.
• Owners and family members do not count in calculating either the number of employees or the average annual wages of employees.
• The maximum credit goes to employers with fewer than 10 FTE’s paying annual average wages of $25,000 or less.

ASPIRE partners is here to help you with your questions about the new health care reform.  We help small to mid-size businesses implement an effective strategy to stay compliant with the new reform laws and regulations and to take advantage of the new opportunities such as the tax credits discussed here.  Contact us at info@aspirepartner.com or at 888-689-7772.