There's more than meets the eye in the health care creditsSubmitted by cthomas on Fri, 05/21/2010 - 12:42
The jury's still out on the complete effects of the recent healthcare bill, but it seems like every small business owner I talk to is excited about the tax credits for small businesses that provide health insurance to their employees. Hold on just a minute, though. Turns out those tax cuts might not have the impact that's been pitched.
The tax credit in the bill has been pitched at applying to businesses with less than 25 employees and average salary under $50,000, but it turns out that, due to the complicated formula used, the credits are less than touted for employers with more than ten employees or more than $25,000 average salary.
It's a bit hard to figure out what the goal of the formulas was, but the reality of it sure appears to be an incentive to lower salaries and employment if a small business provides health benefits and is on the edge of either the employment or average salary marks.
Click the link at the head of this blog for the full article or check out the NFIB's Healthcare Tax Credit Calculator here to see what the effects on your business might be.