Tag Archive health care

Discounted Kaiser Insurance for Small Business Owners

Our public accounting firm is focused on Small Business Owners and Individuals and many times new business owners ask us about the health insurance.   Most of us live in Bay Area and prefer  “Kaiser” as a  health care provider and therefore I gathered some basic information about Kaiser health care plans for small business owners.

Kaiser offers many health care plans but one that suites the need of small business owners is called “GROUP POLICY”.  You can buy this group policy in two flavors.  One with annual deductible and one with no annual deductible.

Plan with annual deductibles cost about $250-$300 less than the non-deductible plans.  Both policies cover doctors visit and other services offered by Kaiser.  Both plans have minimum out of pocket doctor’s visit cost but the key difference is that with annual deductible plan you have to pay the minimum deductible ($1500) before your major benefits kick in.   For example,  daily rate for hospital room may be $500/night and you will have to pay for 3 nights before your insurance pays.  However with non-deductible plans you won’t be required to pay for these three days.

So, if you and your employees are in fairly healthy and won’t be needing any major services than you can opt for deductible plan and save a significant amount on monthly basis.

How about Spouse and kids ?

Yes, off course your employees along with officers/owners of the company can also enroll their dependents including kids and spouse.  Most polices don’t allow to include your parents.

What are the requirements of this kind of policy ?

  • You must have a business in good standing.
  • You must have two or more people enrolling in the policy.
  • More than 50% of all eligible person should have an insurance.

Can I get tax deduction for the health policy ?

You can read my post about health care policy deduction for more details.

How much does the policy cost?

I found the group policy of very good value.   Rate very by age but here is a simple example. Female less than 30 years old can get this kind of policy for about $300.  Not Bad ?

How can I enroll for group policy ?

Simply call Kaiser and ask for enrolling in group policy.

Don’t Miss Out on the Small Business Health-Care Tax Credit

I am sure you won’t mind taking some more business tax credits.   Here is another tax credit, if you are a small business employer with less than 25 employees who are earning average wage of less than $50,000 a year and you pay at least 50% of the employee’s insurance premiums.

This tax credit is targeted towards tax exempt organizations and small businesses.  This credit allows small business owners to offer health insurance for the first time.

Here is the scope of health insurance tax credit:

  • You take this credit as part of the general business credit.  You can use the form 3800 and any unused general Business Credit, would be included with the tax return.  This unused credit can be carried back one year and then forward for up to 20 years.
  •  You must have less than 25 full time employees.  Number of employees is calculated by calculating total number of hours and total number of employees.
  • Average annual wage should also be less than $50,000.  Once again, this is calculated based upon FICA wages and total number of full time employees.
  • Tax credit is for Small Business Owners or Tax-Exempt Organization.
  • Businesses who can’t take credit for 2011 may be eligible to take advantage in future years.  Small employers can claim this credit between 2010 to 2015.

Now the question you are waiting for, How much tax credit?

Maximum credit for small business employers is 35% of premiums paid.  For tax exempt employers the maximum tax credit is 25% of premium paid.

Want more good news?

Beginning in the year 2014, the tax credit will go up to 50% of premiums paid and 35% for tax exempt organizations.

Please note tax credit is on the amount you pay for health care premiums.  Credit is not on employee paid premium.   With up to 50% tax credit, I am sure you would love to offer healthcare for your employees.

Want to take credit this year? Call our office for an appointment.