With the core mandates of the Patient Protection and Affordable Care Act set to kick in next year, many business owners are concerned about the type of impact it will have on their bottom line, given that companies who employ more than 50 workers will be required to provide employee benefits to all of their workers.
While the overall impact of the ACA has yet to be known, there are a variety of indications that suggest business owners may be able to reduce their tax liability.
According to the bill, business owners may qualify for tax credits as significant as 35 percent to 50 percent in 2014, provided they have low-wage workers, pay 50 percent of their employees' premiums costs and have a minimum of 25 full-time employees on their payroll.
For example, if business owners pay $50,000 on annual basis for their employees' premiums, they may be able to save as much as 17,500 if they qualify for the 35 percent tax credit, depending on their payroll situation.
Entrepreneurs can learn more about this tax credit by visiting healthcare.gov or the Internal Revenue Service's website.
