The new healthcare reform bill will bring some healthy tax benefits to small businesses. This week the IRS is mailing out information about the tax credits more than 400 million companies will receive in light of the recent passage of the bill.
According to Time, firms with 10 full-time employees that pay an average wage of $25,000 or less will be eligible for full credit. The credit decreases gradually between firms with an annual $25,000 wage and those with an annual $50,000 wage, as well as between firms with 10 and 25 full-time workers.
For-profit firms can receive up to a 35 percent tax credit of the insurance premiums’ share that employers pay for their workers, while nonprofits can receive up to 25 percent credit. According to the Morris Daily Herald, this credit cap will increase to 50 percent starting in 2014.
With this new credit on the horizon, business owners may be advised to consider business incorporation. In addition to the healthcare tax credits, forming a company opens business owners to a number of potential tax savings. To learn more about the benefits of business formation, entrepreneurs can visit online incorporation website.
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