Healthcare coverage legislation enacted by Congress this year includes a Small Business Health Care Tax Credit which may help some dealers afford the cost of covering their employees.
To find out whether your business is eligible, click here (this link takes you to the IRS website).
The tax credit is worth up to 35 percent of a small business’s premium costs in 2010. The rate increases to 50 percent in 2014.
According to the Internal Revenue Service, to qualify for the tax credit an employer must cover at least 50 percent of the cost for health care coverage for some of its workers. A dealer also would need to have the “equivalent” of fewer than 25 full-time workers (for example, 50 half-time workers would qualify). The employer also must pay average annual wages below $50,000.
The tax credit phases out gradually for small businesses with average wages between $25,000 and $50,000, and for firms with the equivalent of between 10 and 25 full-time employees.
Posted by Mary Slepicka