Tax breaks helps small businesses

By | September 25, 2010

According to few small business owners, federal tax credit which is provided under to new health care reform law would be beneficial. But other small business owners expressed that the credit would only give temporary relief because of increase in health care costs for small companies.

The eligibility of small businesses for the tax credit can cover up to 35 percent of health care costs. Tax breaks are suitable for small businesses whose employees are between 2 and 25. And also the average income of the employees should be $50,000 or less. Moreover, the small businesses owners have to pay 50 percent of employee premiums on health insurance policy.

There is already a subsidy program for small businesses at Maryland which is helping owners of small businesses to purchase health insurance for their employees. Only businesses who have 2 to 9 employees are eligible and also participation of 3 quarters of those employees is required.