NFIB’s members continue to report healthcare as their number one problem, and the implementation of Obamacare only creates more concern and uncertainty for small business owners. While many questions remain unanswered, one thing seems likely—Small business will pay more for healthcare.
A recent poll of NFIB/NY members found that 94% of small business owners expect premium rates to increase when the employer mandate becomes effective in January 2015. And keep in mind that the strongly opposed Small Business Health Insurance Tax will further drive up the cost of premiums too.
Is there any relief in sight?
Some businesses may qualify for a health insurance tax credit to help offset part of the cost of health insurance.
- · Employers with fewer than 25 employees and average wage rates below $50,000 may be eligible for tax credits to offset part of the cost of employee health insurance coverage. The amount of the credit shrinks once a business surpasses 10 employees and/or an average wage of $25,000.
- · The credits can only be used if there are tax liabilities to offset.
- · The credits can offset up to 35% of the employer portion of premium contributions through 2013.
- · The maximum percentage rises to 50% in 2014 but is only obtainable when purchasing insurance through a SHOP exchange.
- · Beginning in 2014, the credit is only available for a maximum of two years.
Calculate the health insurance tax credit for your business here.