Friday, September 17, 2010

How Obamacare Tax Credit Will Help Small Business in Massachusetts and There is no Santa Claus

   Yes, it is true, there is no Santa Claus.  Many of us in small businesses are still waiting for the economy to come back.  Most projects now even being considered have a tie to the Stimulus and will be paid for with your tax money.  In Massachusetts we are already working with mandated insurance for all and the cost has gone up every year.  Now comes word from the government and the IRS on how exactly and painlessly the tax credit will work and benefit small business............

The health insurance tax credit program that was created as part of federal health reform is likely to have little impact on small employers in Massachusetts, who pay some of the highest rates in the country.
Tax watchers say that the Byzantine formula to determine the credit, along with rules that will box out a large number of local companies, means that Massachusetts is likely to benefit less than other states.
Last week, the Internal Revenue Service issued its first official directive to small businesses about how to apply for the tax credit. Businesses that wish to claim the credit will do so as part of the general business tax credit.
The credit, which was created as part of federal health reform, is only available to businesses with fewer than 25 employees and average annual wages of less than $50,000. To get the maximum tax credit, equal to 35 percent of the portion of the health insurance premium that is paid by the employer, a business must have fewer than 11 workers, with an average wage of $25,000. The value of the tax credit ramps down to nothing once a business reaches 25 workers and $50,000 average salary.

Read more: Credit won't cure small business pains - Boston Business Journal

            So much paper, time, and energy wasted...............please stop helping me.

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