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I've been complaining about health insurance costs for a long time now, it honestly does nothing but upset me. But the IRS really annoyed me today. They sent me a postcard (PDF version) in the mail today that had in big blue letters saying a new act "could earn you a new tax credit this year for providing health insurance for your employees." The big blue letters continue to make me excited and happy because it says "a credit worth up to 35% of (health insurance) premiums paid in 2010."
I immediately thought, wow - maybe I can cover even more of the insurance I currently pay towards for our team. But then I read deeper and checked out the requirements. They include:
• Providing health care coverage. A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate. CHECK, RB DOES THAT
• Firm size. A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible). CHECK, RB IS THAT.
• Average annual wage. A qualifying employer must pay average annual wages below $50,000. WHAT?!
Which businesses smaller than 25 employees that care to provide health insurance for their employees actually have an average pay wage of less than $50,000 per year? Especially in the most expensive areas, metro New York, to cover health insurance for employees? Seriously!
The IRS gives examples of qualifying companies in this PDF. They include:
• A mechanic shop that pays each mechanic about $25,000 each.
• A diner that pays the waitresses $25,000 each
Then to tease me even more, the IRS adds, "On Jan. 1, 2014, this rate increases to 50 percent."
Now, I normally don't get heated about politics or get into the debate, but really, who does this help?
Barry Schwartz is the CEO of RustyBrick, a New York Web service firm specializing in customized online technology that helps companies decrease costs and increase sales. Barry is also the founder of the Search Engine Roundtable and the News Editor of Search Engine Land. He is well known & respected for his expertise in the search marketing industry. Barry graduated from the City University of New York and lives with his family in the NYC region.
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