Accounting and Tax Services
May 17

Small Businesses Tax Credits Begin in 2010

Under the new healthcare reform law, companies (this includes medical practices) with fewer than 25 employees and average annual wages of less than $50,000 will be eligible for a credit for certain contributions to purchase health insurance for employees.  The credit phases in from 35% of the employers contribution to 50% by 2014. Smaller medical practices with 10 or fewer employees and average annual wages of less than $25,000 can get up to a 100% credit. The credit is effective for taxable years beginning after 2009.


Not included in the definition of an employee are seasonal workers, self employed individuals, 2 percent shareholders of an S Corporation , 5% owners of a small business, and dependents. Leased employees are eligible for the credit. These rules are effective as of date of enactment.


About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →