The Tax Incentive
Nov 6th, 2009
There are so many variables that enter into the equation of being self-employed in today’s world. Living and working the state of New York is no exception. The competition between business vendors is fast and furious with no end in sight. How does the entrepreneur survive in such a jungle? All individuals working as independent entrepreneurs have an outside building they work in. The majority utilize their homes when they own a home and other entrepreneurs redesign their garage space, turning it into a legitimate full time office. However, health insurance weighs heavily on their minds. The business structurally is running and doing well, but now it is time to focus on medical coverage. The biggest question is how to afford it.
Will the medical coverage chosen, be allowable by law to deduct as an expense on the end of year federal income tax? This is a factor to consider when in search of an insurance plan. If the medical coverage is deductible in whole, or in part, plays a role in acquiring health care in the first place.
- Medical insurance is not deductible in its entirety.
- The structure used for an office in the home is a separate room.
- The partial deduction is allowable for utilities and telephone.
- The partial deduction is allowable for homeowner insurance.
These are only a few of the factors that affect the decision process. If you are susceptible to these and other deductions it will affect the decision on how much you can afford for low cost health insurance. This will also affect the insurance program you decide to enroll with, depending upon how many employees you hire to work with you. The end result though, will mean more liquid cash readily available. This will help with the decision to add prescription drug coverage and dental coverage to your new medical insurance policy. The benefits will help you and it will help your employees.
The medical providers in your area work closely with various insurance companies. You will have to be vigilant in choosing the right insurance company that works closely with those doctors and hospitals in your area. When you enroll in an insurance plan you can ask at the time of signing for the average monthly cost for health insurance. This will aid in deciding how much to deduct from your employees payroll. Whether you deduct a portion of the medical insurance weekly, bi-monthly or monthly it will help you to understand your monthly cost factor.
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