Archive for April 24th, 2010

Tax Credit and Aultcare Make Health Insurance Coverage Easier

Saturday, April 24th, 2010

IRSIt can feel nearly impossible for small businesses to offer health coverage to their employees.  A special tax credit new in 2010 can help small businesses and tax-exempt organizations provide health insurance, according to “New for 2010 – Tax credit helps small employers provide health insurance coverage,” from The Gilmer Mirror out of Dallas.  The credit is included in the health care reform act, the Patient Protection and Affordable Care Act.  The credit aims to help small businesses obtain or maintain health insurance coverage from companies like Aultcare and is aimed towards those employers who pay at least half of their employee’s single coverage cost.  The IRS Commissioner urges small businesses and tax-exempt organizations to see if they qualify for this tax break because it is already in effect.

The current maximum credit is 35% of the premiums paid by small businesses in 2010 and 25% of the premiums paid by tax-exempt organizations that are eligible employers.  The maximum credits increase in 2014 to 50% for small businesses and 35% for tax-exempt employers.  The small and tax exempt employers can obtain coverage from Mercy Health Plans or any other insurance provider.  This credit targets small businesses and organizations employing workers with low to moderate income levels.  Typically they have to employ less than 25 full time equivalent workers earning less than $50,000 per year on average.  The maximum tax credits go to businesses employing fewer than 10 full time equivalent workers, earning less than $25,000 on average.  The general business credit can be redeemed starting in 2011 and the IRS is sending out postcard notifications to businesses that may be eligible.