Small businesses can earn large tax credit
Being that Albany is a small business community, the speaker at Tuesday's Albany Rotary Club meeting spoke about a tax credit they can get.
Scott Buchanan, President and CEO of Human Resources Inc., informed Rotarians about the Health Care Reform Act's 35 percent tax credit for businesses with fewer than 25 full time employees.
"So for instance if a company is spending 240,000 on health insurance with employees the credit would be 84,000 which is significant," says Buchanan.
He says Fortune 500 companies have been providing health care and benefits for years but its more difficult for small business who have tight budgets.
Buchanan adds that the Health Care Reform Act also brought about more strict discrimination requirements with health care in companies.
"Health care has not been subjected to discrimination requirements, so any company who has at least 50 employees will have to satisfy the discrimination requirements which generally is going to require the same benefits being offered to the executives that are offered to the other workers in the company," he says.
Buchanan says legislation is in the works that allows small businesses with fewer than 50 full time employees to take advantage of the tax credit.