According to a report by CBS Los Angeles, in 2014, owners of small businesses will be able to attain coverage for employees through California’s health insurance exchange. More specifically, they will cover up to 50 qualified employees thanks to the Small Business Health Options Program (SHOP) of Covered California.
The executive director of Covered California believes the newly enacted program will give business owners and their employees health insurance at great values. More than 1,500 small business owners have been looking into SHOP as an option.
Although eligible employees work 30-hour weeks on average, this program will allow business owners to provide part-time employees who work at least 20 hours coverage if they so choose.
Soon, small business owners will have no other option besides Covered California if they wish to access federal tax credits for contributing towards employee premiums. In order to qualify for these federal tax credits, a business must employ less than 25 full-time-equivalent workers, provide an average annual pay of less than $50,000, and cover at least half of employee premiums.
“For example, a beauty shop with 10 full-time employees and total wages of $250,000 that purchases insurance through Covered California’s SHOP may be eligible for a $35,000 tax credit in 2014,” said the executive director. “We know that the tax credit is meaningful for a lot of small business that have been struggling to obtain quality, affordable coverage for their employees.”
Running a business is difficult work. There are so many variables to keep in mind, and any misstep can lead to failure. The experienced Orange County small business lawyers at McFarlin LLP have helped many clients start or preserve their business. If you have questions on any legal issues regarding your business, please give us a call at (888) 728-0044.