You get up to 35% credit on what you pay towards medical. The only crappy thing is that your staff has to average under $50K income… But I think this could work in some parts of the country. Disappointed that it doesn’t take into consideration that some areas have a higher income level and associated higher costs. Out of 15, I only have a third making less than 50,000.
We’ve had very few clients get the credit….as we suspected. For those that have, it’s been at most $1,000, usually less.
The “average wage” calculation usually kills the chances. It’s generally based on full time equivalent. what that means is you could have several part-time people making $20k each & one or two full time making near or way over $50k (hygiene for example). The problem is, a 20 hour per week person making $20k is equivalent to a full time person making $40k and when you factor in the full time people making $50k or $80k (full time hygiene) your “average wage” exceeds $50k.
It’s not good for us either because it adds extra work to every business tax return we do…..
This first appeared on DentalTown.