Often times, small business owners are unable to provide their employees with health insurance plans because of high premium costs. However, according to this article, many have been able to provide plans to their workforce because of the 2010 IRS tax credit for small business health insurance.
Businesses eligible for the tax credit need to have no more than 25 full-time employees who make less than an average of $50,000 per year. Those who are deemed eligible have the ability to gain up to a 35% credit of the premiums that they pay. The good news is that this credit will continue to be available through the tax year 2013. What’s even better news? Starting in 2014, the tax credit percentage may even increase up to 50% of the premiums that owners pay.
This credit is one of many reasons small business owners should feel optimistic going into 2011 and beyond. It is a cost-cutting feature that will allow businesses to save money, much like business credit cards.
Toffer Grant is PEX's Founder and CEO. He founded PEX in 2006 as a prepaid card solution for small businesses. His background in the prepaid industry began at Clarity Payment Solutions, where he initiated 65 prepaid card programs in consumer, corporate, and emerging verticals of the prepaid card industry.