Great tool for use by business owners of 25 employees or less to calculate the small business tax credit for group health insurance.

 

Brought to you by Blue Cross Blue Shield of MI and H&R Block,

 

http://www.bcbsm.com/grow/taxcalculator.shtml

Health insurance tax deduction for the self-employed
On Sept. 27, 2010 the Small Business Jobs Act was signed into law providing a new tax deduction
for self-employed individuals who purchase their own health insurance. The provision, which is expected to affect up to two million small business owners, may provide a deduction when calculating their self-employment taxes. The provision is estimated to provide over $1.9 billion in tax cuts to these entrepreneurs.¹
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According to Wayne Nelson, president of Communicating for America, Inc. (CA), the fix is only good for the 2010 tax year but CA and other groups are working on making it permanent next year. It could mean an additional 15 percent tax savings when deducting your health insurance premium.

Eligible small employers could qualify for a tax credit worth up to 35% premiums paid in 2010. Yes 2010.  A trend we have seen over the past several years is employers dropping group health insurance.  Especially groups under 10 employees.  With this tax credit, it may make sense to reintroduce the idea of having a group health insurance benefit in a small business.  The percentage of tax credit goes up to 35% for businesses with less than 25 full time employees that make less than an average of $50k per year and 25% for non-profits. This could change the game for a lot of small employers, so if you have questions, call us today. 

As the Health Care Reform bills leave Congress and are enacted into law, the impact of these sweeping changes will be felt by pretty much everyone in this country.  The words are on paper and now it is time to translate what it means. 

We have seen, already, over the past four days changes in how the laws are going to be translated to real life.

Timlines are being set, and we are working 7 days a week right now to keep on top of changes, how they can benefit our clients, and making Prime Insurance Service the go to experts when it comes to easy transitions for our clients over the next weeks, months and years as we fully implement the changes that are coming.