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Navigating The Small Business Healthcare Maze

Navigating The Small Business Healthcare Maze

October 18, 2022

Navigating The Small Business Healthcare Maze

Here is 4 key points to consider.

  1. Providing Healthcare Coverage as a New Business Owner

As a new business owner, one of the most crucial decisions you will face is how to provide healthcare coverage for yourself, your family, and your employees. Navigating the complex landscape of rules and regulations can be challenging, especially for individuals and small businesses with fewer than 25 employees. However, understanding your options and taking advantage of available resources can help you make informed decisions that benefit both your business and your employees.

  1. Small Business Health Care Tax Credit

One valuable resource to consider is the Small Business Health Care Tax Credit. This credit is designed to assist small employers in affording the cost of providing healthcare coverage for their employees, particularly those with low- and moderate-income workers. By utilizing this tax credit, you can potentially reduce the financial burden of offering healthcare benefits to your employees.

To determine the eligibility and potential tax credit amount, you can utilize the small business tax credit calculator available at www.healthcare.gov. This tool will help you estimate the credit you may qualify for, providing valuable insights into the financial implications of providing healthcare coverage for your employees.

  1. Small Business Health Options Program (SHOP)

Another avenue to explore is the Small Business Health Options Program (SHOP). This program allows qualified employers with up to 50 full-time equivalent (FTE) employees to access the Health Insurance Marketplace. Unlike traditional insurance options, the SHOP Marketplace offers small businesses increased purchasing power, providing a wider range of high-quality coverage choices at potentially lower costs.

By enrolling in SHOP, you can leverage the benefits of a larger group purchasing pool, which often leads to more competitive rates and improved coverage options for your employees. This can be especially advantageous for small businesses that typically face higher healthcare insurance costs compared to larger corporations.

  1. The Importance of Financial Planning for Business Owners

As a financial advisor specializing in business benefits packages, estate planning, and investment portfolios, I understand the significance of comprehensive financial planning for business owners. When it comes to healthcare coverage, it is essential to consider the long-term financial implications and potential tax advantages associated with providing benefits to your employees.

By carefully strategizing your business’s healthcare coverage, you can not only attract and retain top talent but also potentially reduce your tax liability through available credits and deductions. As a business owner, investing in your employees’ well-being and financial security can ultimately contribute to the overall success and growth of your business.


About the Author:

Damon Paull is a Marine Corps veteran who has traveled to over 20 countries. As a financial advisor in Houston, Texas, he is passionate about helping business owners and individuals pursue their financial goals. You can connect with Damon and his team at: 703.362.5747 or DPaull@totuswm.com.