Randall Pence of Capitol Advocates, Inc., is ASHI's federal lobbyist. He notified ASHI that a new tax credit takes effect immediately that may help cover the health premiums small business owners pay for their employees.
The Small Business Health Care Tax Credit can cover up to 35 percent of the premiums a small business pays to cover its workers. In 2014, the rate will increase to 50 percent.
If your small business pays employee health insurance premiums in 2010, you may be eligible to claim a new credit on your 2010 tax return. Employers with fewer than 25 employees (more if you have part-time employees), and less than $50,000 in average wages, may be eligible.
In general, the credit is available to small employers who pay at least half the cost of single coverage for their employees in 2010. It is specifically targeted to help small business and tax-exempt organizations that primarily employ moderate-and lower-income workers.
To find out if you're eligible, visit www.irs.gov and look for "affordable care act" or consult your tax professional.