Discussion:Small Business Health Care Tax Credit Wife Employee

16:24, 2 April 2010 (CDT)16:24, 2 April 2010 (CDT)~~ 13. If an owner of a business also provides services to it, does the owner count as an employee?

A. Generally, no. A sole proprietor, a partner in a partnership, a shareholder owning more than two percent of an S corporation, and any owner of more than five percent of other businesses are not considered employees for purposes of the credit.

14. Do family members of a business owner who work for the business count as employees?

A. Generally, no. A family member of any of the business owners or partners listed in Q/A-13, or a member of such a business owner’s or partner’s household, is not considered an employee for purposes of the credit

For this purpose, a family member is defined as a child (or descendant of a child); a sibling or step-sibling; a parent (or ancestor of a parent); a step-parent; a niece or nephew; an aunt or uncle; or a son-in-law, daughter- in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law.

16:24, 2 April 2010 (CDT)16:24, 2 April 2010 (CDT)16:24, 2 April 2010 (CDT)

So, if a wife is a legitmate employee and not a member of the owner's household, then the wife's premium's (which include the owner as a spouse) could be claimed?

$18,000 of premiums offset with $6,300 worth of credits tend to make you think twice.

Once again though, it appears that Congress believes that small family business does not need any tax breaks.

Let me itemize how the premium dollars break down:

$8,000.00 for mansions, caviar, and lobster for insurance co executives

$8,000.00 for mansions, caviar, and lobster for drug company executives

$1,000.00 for private planes to fly hospital administrators to Vegas

$1,000.00 left to care for the miserable patient.

Yep, that's about right. That's what lobbying will do for you.

Let's start from the top:

A. The first $10,000,000 goes to pay the salary of the CEO. That's 600 family policies. There's 30 major health insurers, United Health, High Mark, Blue Cross.... So that's $300,000,000, plus bonus and golden parachutes...

B. The CFO gets the next $2,000,0000 per company. So the next $60,000,000 goes to them.

C. The VP of marketing gets $1,000,000 per company, so there goes the next $30,000,000.

D. The head lobbyist gets $4,000,000 plus perks...

...

Z. There are para-legal nay-sayers to deny claims. They are so poorly trained in contract law (or casting bones on the meaning of your policy) that one can never get the same answer twice. There are 5,000 per company and are paid 2 policies per year. That's $180,000,000 per company or about $5.4 Billion.

AA. The fax shredders are highly trained in the Eeney-Meeney-Miney-Moe selection methodology to assure that no application is ever complete. Alas, an incomplete application can not be processed. Next.

It will seek it's "own level" just like water, but government tinkering only pushes the problem around to different corners of the room. If you're in the wrong corner - too bad, you get scr---d.

It doesn't look good for us self-employed stiffs for at least another 4 or 5 years until the government realizes they have created a monster that will eat small businesses for breakfast.