If you saw President Obama give last week's State of the Union speech, you would have heard him mention how Jim Houser, Co-owner of Hawthorne Auto Clinic, would be getting a $5,000 tax credit to help his small business provide health insurance to his employees under the new Patient Protection and Affordable Care Act.
Jim and the Hawthorne Auto Clinic are customers of ours and we computed the tax savings for him that the President used in his speech. Jim was in the balcony for the speech and I'm both proud of him for his activism and leadership that got him there, and I'm proud of TriLibrium for being just one step removed from the White House.
The tax credit is available to certain small business with tax years beginning in 2010, for those that provide health insurance coverage to their employees. It is also available to certain non-profits and even household employers.
The rules are too complex to go into here but the IRS has a frequently asked questions page that should answer many of your questions. I suggest you start their and then speak with your CPA to find out how you can benefit from this legislation.
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The IRS is holding a free webinar on February 16, at 2pm EST to go over this credit.
The webinar is geared towards professionals and small business owners. Professionals may earn CPE credit.
http://www.irs.gov/businesses/small/article/0,,id=166814,00.html#1
Great post!
This useful information will guide us in our way of living in the next few years.
Thanks for sharing!
When they get an insurance rate quote back from a health insurance company, most people don't think too much about how the insurance company decided what kind of premium to offer them and what extent of coverage to offer them. The answer to this question is medical underwriting: the medical health status information gathered in the process of evaluating the health condition of an applicant. While some companies require applicants to submit blood and urine samples as well as filling out a detailed medical history, others allow you to provide your own information and will take your word for the information you've provided.
I believe that in Oregon, small groups (less than 50 employees) are covered based on a census figures only. Insurance companies are not allowed to evaluate individual risks. This is likely to be true in many other states.
The idea behind health insurance is to create large pools of risk to spread the risk around and the larger the pool the better.
In Oregon, any small group (less than 50 employees) will get the EXACT same price for insurance coverage regardless of the broker.
What the small business provider gets to choose is the coverage (limits, deductibles, waiting times, etc.) and the provider. Once that decision is made, the rate comes off a schedule.
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