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Tax Credit Could Reduce Employers' Cost To Provide Health Care Insurance
Tax Credit Could Reduce Employers' Cost To Provide Health Care Insurance
MISSOULA ―
Nearly 7,400 small businesses in Montana may qualify for a tax credit of up to 35 percent of the health insurance premium they pay for their employees under the new federal health care legislation, according to the latest issue of Montana Business Quarterly.
“For employers wanting to reduce the cost of providing health insurance, the tax credit should ease the burden somewhat,” said Gregg Davis, director of health care industry research at The University of Montana’s Bureau of Business and Economic Research. “But employers should recognize that in some instances, the qualifying premium could be reduced because of caps set by the U.S. Department of Health and Human Services.”
Davis co-wrote the article, “The New Health Care Law: Montana’s First Steps,” with Jerry Furniss, a professor in UM’s School of Business Administration.
For the full 35 percent tax credit, qualifying businesses must meet three criteria: They must employ fewer than 10 full-time-equivalent employees, pay average annual wages of less than $25,000 per employee, and pay at least 50 percent of the insurance premium.
However, Davis said, limitations on the premium amount that can be applied to the credit could reduce the attractiveness of the tax credit for some employers. The average premium for a family policy in Montana is $11,438, with employers paying about 67 percent of that premium, or $7,615.
(Continue)
"http://news.umt.edu/2010/08/082610hlth.aspx"
MISSOULA ―
Nearly 7,400 small businesses in Montana may qualify for a tax credit of up to 35 percent of the health insurance premium they pay for their employees under the new federal health care legislation, according to the latest issue of Montana Business Quarterly.
“For employers wanting to reduce the cost of providing health insurance, the tax credit should ease the burden somewhat,” said Gregg Davis, director of health care industry research at The University of Montana’s Bureau of Business and Economic Research. “But employers should recognize that in some instances, the qualifying premium could be reduced because of caps set by the U.S. Department of Health and Human Services.”
Davis co-wrote the article, “The New Health Care Law: Montana’s First Steps,” with Jerry Furniss, a professor in UM’s School of Business Administration.
For the full 35 percent tax credit, qualifying businesses must meet three criteria: They must employ fewer than 10 full-time-equivalent employees, pay average annual wages of less than $25,000 per employee, and pay at least 50 percent of the insurance premium.
However, Davis said, limitations on the premium amount that can be applied to the credit could reduce the attractiveness of the tax credit for some employers. The average premium for a family policy in Montana is $11,438, with employers paying about 67 percent of that premium, or $7,615.
(Continue)
"http://news.umt.edu/2010/08/082610hlth.aspx"
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