These are the tentative rulings for law and motion matters set forTuesday, July 7, 2009, at 8:30 am in Dept
Although virtually all business owners are aware of therecently-enacted health care reform law, many do not know that tax credits forsmall businesses that provide health insurance to their workers takeeffect this year. In Californiaalone, over 400,000 small businesses could qualify for the credit.
Under the law, companies with no more than 25 workers, andwhose average salaries are less than $50,000, are eligible for a tax credit ofup to 35 percent of the employer’s contribution for health insurance premiums. Themaximum credit for non-profit small businesses is 25 percent. Companies mustpay 50 percent of its employees’ health care premiums to qualify for thecredit. Almost 80 percent of small businesses are expected to qualify for thecredit. There are approximately 4 million small businesses nationwide.
The credit was designed as an incentive for more companiesto offer health benefits to their employees. Small companies typically pay 18percent more for insurance than large companies. The credits will last until2014, when health insurance exchanges will be available to help smallbusinesses provide health insurance to employees.
Under the new law, companies with at least 50 employees willhave to pay penalties if they do not offer health insurance to workers.