Health Care Law Will Benefit Women-Owned Businesses
By Affiliate Tammy Schneider
The Patient Protection and Affordable Care Act provides tax credits to employers with fewer than 25 workers (with average salaries of less than $50,000) to provide health insurance. The credit is offered on a sliding scales, as you can see in this health care credit table, with the full credit offered to companies with 10 or fewer employees (with an average wage of $25,000 or less), phasing out for larger companies.
What does this mean for women-owned businesses? Sources show that the majority of women owned businesses have fewer than 25 employees, making most of them eligible for this tax credit. From 2010-2013, the full credit covers 35 percent of a company’s premium contribution. Beginning in 2014, the full credit will cover 50 percent of contributions for up to two years for plans purchased through state health insurance exchanges. If you are eligible, this is a big help for your business. Make sure you are positioned to take advantage of the credit.