Your Questions Answered
Q: My sister has a BBQ restaurant in Texas. She only has 6 employees. Does this new health care reform bill require her to provide insurance? She currently doesn't because she is in a very small business market and needs to know for the future.
A: The new law will not require your sister to provide insurance. However, it will provide your sister with tax credits if she chooses to provide insurance to her employees. Starting this year - indeed starting retroactively to January 1, 2010 - a new small business health care tax credit will be in effect that will provide a 35% tax credit on health premiums, with the credit increasing to 50% in 2014. Your sister's restaurant is one of about 4 million firms that will be eligible for this tax credit, and small business owners can now find information on the tax credit online .