Small Business Health Care Tax Credit for Employers
The new health care law includes a tax credit/grant for small business employers who cover health insurance for their employees. Non-profit entities, including churches, and also for-profit businesses, can qualify for these benefits.
- Provide health care coverage of at least 50% of the cost of health care for some of its workers based on the single rate
- Emply fewer than 25 full-time or 50 part-time workers
- Pay an average annual wage of less than $50,000
- Both Taxable and Tax-exempt firms qualify
Amount of Credit:
- Maximum amount is worth up to 35% of a small business’ premium costs in 2010 (25% for tax-exempt employers). On January 1, 2014 this rate will increase to 50% (35% for tax-exempt employers)
- The credit will phase out gradually for firms with average wages of $25,000-$50,000 and for those with 10-25 full-time workers
For more information to see if you qualify, contact us today for a free consultation.