Proper planning can pay off for small businesses, healthcare

Another perfect day in San Diego, but from the counter of her family-owned, oceanfront smoothie shop, the owner was too busy to notice the sun glistening off the Pacific Beach waves. The chaos of two employees out sick meant her part-time employees would work overtime while she delivered book-keeping documents from her CPA to her tax preparer. She rushed out with a stack of receipts, but was too busy to realize some of the tax credits available to her as a small-business owner.


“Small-business healthcare credit has been around for quite some time,” explained Janathan L. Allen, Esq., Partner in Allen Barron, Inc. “Unfortunately, between the embroiled political debate over Obamacare and small-business owners having little or no time for a cost-benefit analysis of whether they can afford to provide healthcare and offset that cost with tax credits, many small-business employees are faced with the possibility of having to pay a penalty unless they get insurance on their own.”

According to Allen, tax planning is the process of looking at various tax options in order to determine whether, when, and how to conduct business transactions so the taxes are reduced or eliminated. When the multiple and interrelated aspects of a business transaction—legal, tax, and accounting— are woven in a holistic, pragmatic way, decisions are being made that move a business forward while ensuring appropriate structure direction and compliance with all external requirements.

The planning model suggested by the team at Allen Barron, Inc. is a seamless, strategic approach. Allen emphasized the benefits of multi-faceted planning: “Accounting is not just about numbers. Decisions regarding providing healthcare for your employees involve more than the cost of the premium. Do you qualify for the tax credits available? Do you have 25 or fewer full-time employees, pay an average annual wage under $50,000 and pay at least half of the insurance premiums? Have you run the numbers to compare the credit to the premium cost? What about the cost to employees when you are understaffed due to illness? How do you calculate the preventative care benefits of people having access to affordable healthcare?”

With professionals who understand the interrelated details of business transactions, achieving your goals is possible.

For more information contact Allen Barron, Inc. at (858) 376-1501 or toll free at (866) 631-3570. You can also visit online at or send email inquiries to