The IRS is updating its guidance for small businesses who qualify for the small business tax credit if they provide health insurance. One of the IRS examples illustrates why this is such a big deal:
Example 1: Auto Repair Shop with 10 Employees Gets $24,500 Credit for 2010
Main Street Mechanic:
Wages: $250,000 total, or $25,000 per worker
Employee Health Care Costs: $70,000
2010 Tax Credit: $24,500 (35% credit)
2014 Tax Credit: $35,000 (50% credit)
Durham small construction company owner Blake Anderson was quoted in a Washington Post story today as being optimistic about the tax credit – looks like he has good reason for that position.