Small businesses are the backbone of the economy of US. Throughout the country, there are about 4.8 million businesses which employ just 25 or less than 25 workers. In the year 2010, the health insurance premiums of the employee’s will be paid by the small business owners.
As per the study of Families USA and Small Business Majority commissioned the Lew in Group for the analysis of data on business sizes and wages from the US Agency for Health care Research and Quality and the US Bureau for qualifying the number of employers who would be eligible for receiving help from this provision.
- In 2010, about 4,015,300 small businesses will have eligibility to get a tax credit for the purchase of employee health insurance which is 83.7 percent of all the small businesses in the country which employ less than 25 employees.
- About 1,198,700 small businesses have eligibility for the maximum premium Tax Credits in 2010.
Tax credit
Small business employers who have up to 25 workers and offer coverage can get a tax credit for up to 35 percent of the average cost of a small group plan in their state which would start in the 2010 tax year. For qualifying the tax credits, the small business employers have to cover at least 50 percent of each employee’s health insurance premiums. They are also eligible for the tax credit if they are already receiving assistance from their state which is helping them to purchase coverage for their workers.