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Tax credit for small business healthcare

March 24, 2012 at 10:36 AM   |   Comments

WASHINGTON, March 24 (UPI) -- Under the Affordable Care Act, small-business owners can get tax credit of up to 35 percent to offset the cost of health insurance, officials say.

"On average, small businesses have paid about 18 percent more than large firms for the same health insurance policy," a statement by the White House said. "If you have up to 25 employees, pay average annual wages below $50,000, and provide health insurance, you may qualify for a small-business tax credit of up to 35 percent -- up to 25 percent for non-profits -- to offset the cost of providing insurance."

Mark Hodesh, the owner of a home-and-garden shop in downtown Ann Arbor, Mich., said there has been a lot of misinformation about healthcare reform and its impact on small businesses.

"A lot of people say it's a job killer. In my experience, it's a job creator," Hodesh said in a letter to the White House. "We rely on long-term, well-informed good employees to compete with our box-store competition. The best way I know how to attract and keep good people is to have a good benefits package. Healthcare is a big part of that."

To maintain a strong staff for the past 12 years, Hodesh said he provided healthcare coverage to his full-time employees and said it was a key component to the store's success.

Hodesh said that in the last decade, the cost of his firm's healthcare insurance rates has skyrocketed, but the tax credit gave him the ability to hire another employee to his current staff of 12.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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