By Sharon Ko
MEDFORD, Ore. — A federal tax credit could be saving small business owners thousands of dollars on health insurance, but most companies likely to be eligible cannot take advantage of it because they say they don’t know about it.
Under the Affordable Care Act, also known as “Obamacare”, there is a health insurance tax credit offering savings for smaller businesses. A human resource company, which works with over 80 businesses in the Rogue Valley, says they haven’t heard of a single company taking advantage of this opportunity. Companies can qualify for the federal tax credit up to 35% as long as they have 25 or fewer employees and are paying average annual wages below $50,000.
The president of Holloway Human Resources and Management Consulting in Medford says the federal tax credit is somewhat of a secret. He says this tax credit has not been advertised well. Kaiser Permanente and the small business majority conducted a survey on 200 small business owners across the state. Only 45% of those businesses knew the tax credit existed.
The tax credit is expected to rise to 50% in 2014. For more information on the tax credit, and how to apply, click here.