Health Care Reform: Small Business Tax Credits

In regards to the Patient Protection and Affordable Care
Act, small employers (those who have less than 50 full-time equivalent employees
(FTE)) are not required to offer their employees health coverage. However, an
employer with 25 or fewer full-time equivalent employees may be eligible for
incentives from the federal government to provide their employees with health
coverage.

Many small employers do not realize they have the
opportunity to claim a federal income tax credit on their annual tax returns.
Unfortunately, a very low percentage of qualified business owners are taking
advantage of this credit. Here are the IRS guidelines to be eligible.

The expenses that an employer can count towards the tax
credit includes the premiums that are paid for each employee. The employer must
contribute at least 50% of the cost of the health care coverage for employees.
Must have less than 25 FTE workers when totaling all
individuals’ hours of employment.
Employers must pay their workers an average of less
than $50,000 per year to qualify. The smaller and lower wage employers will
receive a larger tax credit.

If your business meets these requirements, we encourage you
to contact a Health Care Reform Agent (such as our Health Department here at Sweeney & Sweeney) to verify your options and help you
calculate your eligibility of a tax credit.

Health Care Reform: Individual Tax Credits

Tax credits are
available for individuals and families who meet certain income requirements and
don’t have access to affordable health coverage through their employer. Below
are some key points you should know about tax credits.

The size of the tax credit is
based on a sliding scale, with those who make less money getting larger
financial support to lower their cost of insurance.
Individuals and families who
make between 138 percent and 400 percent of the federal poverty level- an
individual making up to $44,680 and a family of four making up to $92,200,
are those who are eligible for tax credits and subsidies.
Tax credits lower the cost of
your premium and can be used when you enroll, you do not need to wait
until you file a tax return at the end of the year.
Tax credits are paid to your health plan monthly
by the federal government.

In addition, as always, with any questions you have about Health Care Reform and what that can mean for your family, yourself, or your business, please feel free to either call or set up a meeting at Sweeney & Sweeney and Cheryl, Jamie, Dan, Shannon, Ellen, and/or John would be more than happy to assist with any concerns.

Health Care Reform: Getting Covered

With the health care reform bill soon to take effect, many
people are worried about how they’re going to afford coverage. Fortunately,
there are many assistance programs available to make sure that your health care
is affordable. For more information, click here to read the full article.

Cost-sharing subsidies help to reduce the amount of expenses
that an individual has to pay out of pocket (i.e. copayments). The assistance
programs are based on an individual/family’s income. The chart below shows some
examples of what you and your family could qualify for.

*Income levels are based on the year 2012

**California only

Sweeney & Sweeney will be having more updates to
come. Please feel free to call us with any questions. Our amazing health team—
John, Jamie, Ellen, Dan, and Cheryl—are always ready and willing to help!