Tax answers for smallbusiness owners BY STACEY SINGER | PALM BEACH POST
If you’re a small-business owner who provides health insurance, you could save thousands of dollars next year because of tax credits written into the new healthcare law.
The IRS has just put out guidance for small businesses on how to qualify, and it’s not nearly as complicated as the IRS factsheet makes it look.
Here’s the plain-English version:
• Do you employ fewer than 25 workers?
• Do your employees earn less than $50,000 on average?
• Do you provide your employees with health insurance?
• Does your business pay for at least half of their premiums?
• If you’ve answered yes to ALL of these questions, you qualify for the tax credit.
So how much is it worth to your business?
The amount of the credit will be calculated based on the average small-group premium in each state. The U.S. Department of Health and Human Services is calculating that number and promises to have it on the IRS website this month.
If you’re a tax-exempt employer, you have to follow different rules, so consult the IRS.
Published on 25/04/2010 00:29:13