Don’t forget about a special tax credit for small businesses buried in the massive health care legislation—the Patient Protection and Affordable Care Act (PPACA)—passed in 2010.
Strategy: Determine if your small business qualifies for the credit. The credit can offset part of the cost of providing health insurance to your staff.
Most provisions in the PPACA are scheduled to take effect in the future, but the health care credit for small businesses is already there for the taking.
Here’s the whole story: Beginning in 2010, a small business may be eligible for the credit if it purchases health insurance for its employees. To qualify, the business can’t have more than 25 full-time employees with average annual wages above $50,000. The contributions must be made under an arrangement requiring the employer to make nonelective contributions to health insurance offered to enrolled employees equal to at least 50% of the premium cost...(register to read more)