Small Business Majority Unveils Online Tool to Help Small Businesses Calculate Savings from Healthcare Tax Credit
Online Calculator Allows Small Businesses to See Financial Benefit from Health Insurance Premium Tax Credit Sausalito, CA, April 12, 2010 Small Business Majority unveiled an easy-to-use online healthcare tax credit calculator today, which allows small businesses that offer health insurance to their employees to figure out how much money they'll save each year through tax credits.
Starting this year, 4 million small businesses that offer health insurance to their employees may be eligible for a tax credit. Small Business Majority's tax credit calculator allows small businesses to find out their financial benefit through a simple process that requires only three inputs: the number of full-time equivalent employees, the total annual wages paid for all employees, and the total annual employer contribution to premiums. They will immediately see how much money they'll save in the years leading up to the creation of state health exchanges (2010-2013), and once the exchanges are in place (in 2014).
"Since healthcare reform passed, we've had a number of small business owners and organizations asking what this means for them-and many of their questions focus on the tax credits, because it will affect many of them immediately," said CEO John Arensmeyer. "This calculator is very easy to use and gives simple, clear results. Healthcare reform is incredibly complex, and many people are confused. This will give them straight answers about something that's going to affect their bottom line."
Through 2013, businesses with fewer than 25 full-time equivalent employees that pay average annual wages of up to $50,000 and that contribute at least 50 percent of the total employee-only premium will be eligible for tax credits of up to 35 percent of the employer contribution. The full credit will be available for businesses with fewer than 10 employees averaging less than $25,000 in annual wages, and phase out at 25 employees and average annual wages of $50,000.
With the creation of state exchanges in 2014, eligible small businesses purchasing coverage through an exchange will receive tax credits of up to 50 percent of the employer contribution.
"I like to think of myself as pretty savvy, but my head starts to spin with some of the intricacies of healthcare reform," said Oregon small business owner Paul Ward. "It only took me about three minutes to find out how much money I'll save with tax credits with this calculator. I'll save $1500 annually until 2013, and beginning in 2014, that number will jump to $2200. Those are significant numbers to a company our size. It's nice to see concretely how healthcare reform will affect my business's bottom line."
Use the calculator online at http://smallbusinessmajority.org/tax-credit-calculator/. Small Business Majority's website also includes a detailed analysis of how healthcare reform will affect small businesses:
About Small Business Majority
Small Business Majority is a nonprofit, nonpartisan organization founded and run by small business owners and focused on solving the biggest problem facing small businesses today: the skyrocketing cost of health coverage. We speak for the nearly 28 million Americans who are self-employed or own businesses of up to 100 employees. Our organization sponsors scientific research that guides us to understand and advocate on behalf of the interests of small businesses across the country.