Smaller firms can qualify for new healthcare tax credits

Entrepreneurs forming an LLC will want to consider new tax credits available through recent healthcare reform in order to minimize expenses.

The new requirements are aimed at making healthcare coverage affordable for smaller businesses. A report by Families USA and the Small Business Majority states that only 46 percent of U.S. companies with fewer than 10 employees provide healthcare.

Much of this lack of coverage is due to the difference in purchasing power of larger companies that are able to lock in lower group rates.

But the new tax credits should offset the gap by offering a 35-percent tax credit for companies with fewer than 10 employees and average annual incomes of $25,000. Larger companies with fewer than 25 employees each earning less than $50,000 annually can avail of a partial tax credit.

Garry Apelian owns a Chicago-area carpet company. He told the Chicago Tribune that high healthcare costs have kept him from hiring new employees, even when business is good.

More creative strategies to manage healthcare costs are being sought by business owners. A recent University of Michigan study found that long-term employee wellness programs provide considerable healthcare savings for employers.ADNFCR-3052-ID-19928192-ADNFCR

Melissa Clark
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Melissa Clark

Head of Content & Customer Marketing at Incfile
Melissa sets the vision for Incfile's content marketing and customer relationship management. Melissa has more than 10 years experience in various marketing roles, and a passion for supporting small businesses as they incorporate and grow. She loves sharing information that will help business owners maximize their LLCs, Corporations and Nonprofits. In her spare time, Melissa is an active member of The Junior League and enjoys running half marathons.
Melissa Clark
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