More than 80.1 percent of Florida's small businesses with fewer than 25 employees will be eligible this year for tax credits to help pay the cost of employee health coverage, according to a new report issued by the consumer health organization Families USA and small business advocacy group Small Business Majority.
The tax credit program, a key element of the new Patient Protection and Affordable Care Act, targets small employers with up to 25 workers. In Florida, this means 246,000 small businesses will qualify. Nationally, more than 4 million small businesses — 83.7 percent — are eligible in 2010 for the credit.
The report, “A Helping Hand for Small Businesses: Health Insurance Tax Credits,” also notes that 77,400 Florida small businesses will qualify for the maximum tax credit of 35 percent. These are businesses that employ 10 or fewer workers who earn an average wage of less than $25,000, and traditionally have the most difficult time affording insurance.
Nationally, 72 percent of small businesses with 10 to 25 workers offer health coverage, while more than 95 percent of businesses with 50 or more workers offer coverage. The new law aims to redress that imbalance with tax credits, offering the maximum credit of 35 percent to the smallest companies.
Non-profit employers also benefit, with a maximum credit of 25 percent. As the number of employees and their average wages rise, the tax credit is reduced on a sliding scale.
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