Most common question asked my small business owners is "what is considered a small business?"
Under the Act, a small business is not specifically defined, but a number of sections of the law apply only to entities with fewer than 25 employees (for more detail see below.) However, under some sections of the law, the effective company size is 50 or 100 employees.
Beginning in 2014, health insurance will be available to individuals and small businesses through state-run “exchanges.” These will require insurance companies to compete for business in the marketplace. The objective is to make it it easier for individuals and small businesses to obtain health insurance at a lower price.
The exchange program for small businesses, known as the Small Business Health Options Program (SHOP), will allow small businesses to pool together to increase their purchasing power. This will allow these businesses to offer health insurance to their employees at rates similar to those available to large corporations.
Five Star Representative provide help for small businesses to provide insurance for their workers?
From 2010 through 2013, businesses with fewer than 25 employees and average annual wages of $40,000 or less may be eligible for a tax credit of up to 35% if they pay for at least 50% of their employees’ health insurance costs.
Beginning in 2014, small businesses that purchase health insurance for their employees through SHOP can receive a two-year small business tax credit of up to 50% of the cost of the premiums.
While small businesses are not required to obtain insurance for their employees through the exchanges, the available tax credits will likely spur many smaller employers to purchase coverage for their workforce.
Would like more information on how you can provide health insurance to your employees. Contact a Five Star Representative now or make an appointment at one of our convenient locations throughout Atlanta.
191 Peachtree St Suite 3300
Atlanta, GA 30303
East Metro Branch North Metro Branch
2093 Rock Chapel Rd 3754 Lavista Rd Ste 200
Lithonia, GA 30058 Tucker, Georgia 30084
(O) 678-526-7979 (O) 678-956-5070
(F) 678-526-7222 (F) 678-248-0723