I’m guessing you’ve not read about this little tax sweetener in your local business newspaper, so here’s something to discuss with your CPA.
If you employ no more than 25 full time employees (or the equivalent if you employ part-timers) and the average annual compensation is $50,000 or less, your business can qualify for up to 35% of your employer-paid health insurance premiums as a tax credit (NOT a deduction, a CREDIT, much better). Even better, this applies to your tax bill THIS YEAR – 2010! And the credit increases to as much as 50% by 2014.
There are some additional qualifiers, as usual. For example you must be paying at least 50% of the premium for your workers based on the single person rates. We don’t have all the details here, but the best source I’ve found for answers to such questions is Chuck Kiskaden, a consultant in health care issues (email@example.com]. Then discuss with your CPA the impact this will have on your year end tax planning.
As always, I welcome your comments.