Snap Fact #224
ObamaCare Offers Positive Changes For Small Employers!
Personal testimony: 

“I found out I’m eligible for a 35% tax credit for the premiums I pay for my employees, which makes it easier to keep offering coverage.” - Ed, owner of Franklin Fitness Center in Franklin, N.C., who provides insurance to his employees but has struggled with annual rate increases.

New reporting requirements

How it works:

• To help pay for health reform, new rules increase tax compliance by requiring businesses to report to the IRS payments for goods and services in excess of $600.

The fine print:
• This tax change is often referred to by the name of the form typically used to report these payments, Form 1099.
• Pending legislation seeks to repeal or alter this provision. It’s estimated that full repeal would result in approximately $19 billion in lost revenue between 2012 and 2022.


Small-business tax credits
 


How it works:

• Employers can receive a tax credit for up to 35% of what they spend on coverage for employees (25% for nonprofits). On Jan. 1, 2014, this tax credit increases to 50% (35% for nonprofits).
• Businesses must have fewer than 25 full-time workers, pay average salaries under $50,000, and cover at least 50% of the employees’ premiums.

The fine print:
• Premiums for small-business owners and their families do not qualify for the tax credit.
• Tax credits vary; check out details at www.irs.gov/pub/irs-utl/3_simple_steps.pdf.