There are some key components that you should consider when it comes to being in a small business and getting the insurance that you’d like to have.
- Tax Subsidies for Individual Insurance Types – The subsidies can make health insurance more affordable to those that are looking for coverage but do not think they can afford it. The cost of the insurance is capped at between 2 percent to 9.5 percent of total income. This is only if the household income falls under 400 percent of the poverty line.
- Individual Tax Penalties – This mandate, known as the individual mandate, requires citizens to purchase a health-insurance plan or pay a penalty through their tax return each year they are not covered.
- Tax Credits for Small-Business Insurance – Small businesses that have 25 full-time employees can qualify for a health benefit tax credit.. This credit is up to 50 percent of health-insurance costs. These credits can only be used through the plans that are purchased through SHOP exchanges in small businesses.
- Tax Penalties for Small Businesses – If the business has 50 or more full-time employees, it must provide affordable coverage or face charges and penalties each year coverage is not offered. You are not subject to pay for these penalties if you do not have this many employees in your business.
Understanding these key benefits is a big thing for business owners. You have to make sure that you’re either offering something or know that there are penalties if you do not. By being able to choose what to do and how to do it, you can find the best solution for your business.