Legislative Affairs
ABC Chesapeake Shores is dedicated to defending and promoting the merit shop construction industry. ABC is committed to developing fair and equal work opportunities, by keeping you up to date on government action. ABC monitors all legislative activities at local, state and federall levels. The legislative committee keeps our membership informed of pertinent information and initiates any required activity.
ABC Chesapeake Shores maintains full-time legal assistance for members on all labor issues. Legal assistance is immediate, free for first consultation on each issue and provided by a leading law firm in the labor relations field.
2010 Legislative issues
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The Internal Revenue Service (IRS) is offering online tools to help small businesses take advantage of the Small Business Health Care Tax Credit, which was included in the Patient Protection and Affordable Care Act and signed into law March 23 by President Obama.
The tax credit is designed to help small businesses afford health insurance coverage for their employees .The credit is worth up to 35 percent of a business’ premium costs in 2010, and the amount increases to 50 percent of premium costs in 2014.
In order to qualify for the credit, an employer must have fewer than 25 full-time equivalent employees (FTE) for the tax year; cover at least 50 percent of its employees’ premium costs; and offer average annual wages of less than $50,000 per FTE.
For more information, including scenarios illustrating how the credit applies in varying circumstances and how to determine which businesses are eligible for the tax credit, visit the IRS website.
For an overview of what to expect from the health care reform bill over the course of the next several years, ABC offers a health care timeline.
A small employer tax credit is included in the health care reform legislation, the Patient Protection and Affordable Care Act, approved by Congress and signed by President Obama on March 23. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees. Our past studies show that this should include almost all members
The maximum credit is 35 percent of premiums paid in 2010 by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. In 2014, this maximum credit increases to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible employers that are tax-exempt organizations.
The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ low and moderate income workers. It is generally available to employers that have fewer than 25 full-time equivalent (FTE) employees paying wages averaging less than $50,000 per employee per year. Because the eligibility formula is based in part on the number of FTEs, not the number of employees, many businesses will qualify even if they employ more than 25 individual workers.
Please refer to the attached “news you can use” which contains all the details plus Q&A as released by the IRS this past week. We have deleted Q&A #2 and #6 which referred exclusively to tax exempt organizations. Although this is quite lengthy it provides complete details on the tax credit option.
Details of the Health Care reform legislation will continue to unfold similar to peeling an onion. As new information develops we will forward it to you for your communication to members.