Under the Affordable Healthcare Act, it is a necessity for businesses to offer healthcare to their employees. While some small business may prefer to avoid the topic of health insurance, the truth is that it is a must-have. Small businesses can benefit from offering health insurance to their employers, as there are some tax credits available. The tax credits make it much more affordable for small businesses to offer the options of health insurance to the employees.
A small business is a business that has approximately 50 employees or less. Insurance costs for small businesses can cost thousands of dollars but many small businesses end up qualifying for the tax credit that is provided, which can be worth about 35% of the original wages for health insurance each year. With this tax credit, small businesses are able to save a lot of money and will still be able to provide insurance to their employees.
Within the next two years, the tax credit for small businesses will increase from 35% to 50% for a number of small businesses. The businesses that do qualify for this 50% tax credit will be able to enjoy an even lower cost of health insurance for their employees. The Affordable Care Act does not require that all small businesses have to provide health insurance to their employees, but it is something that should be offered to employees.
Small businesses in the state of California can apply for health insurance for their employees through different health insurance companies, ultimately choosing the company they feel is best. Affordable Insurance Exchanges will soon be offered as well, allowing small businesses to shop around for affordable health insurance and ultimately get the best choices for their employees while ensuring that all employees have health insurance coverage.
For more information, please consult your small business insurance professional or visit http://healthcoverageguide.org/.