Friday, January 4, 2013

Small Business Tax Credit under the Patient Protection and Affordable Care Act

If you are planning on offering or currently are offering health insurance to your employees we would like to remind you that small businesses who provide health insurance coverage can receive a tax credit.
 
In 2012 and 2013 you may qualify for a tax credit of up to 35% if you:

1. Employ 25 or fewer employees.
2. Average annual wages are less than $50,000 per employee per year.
3. Pay half or more of the cost of health insurance premiums.

Beginning in 2014 that tax credit increases to up to 50%.

This tax credit was put into place in 2010. If you have not previously taken that credit you may be able to file for an amended return. Below is a link to the inevitable fine print on the IRS website to review with your tax professional.

1 comment:

  1. The main tool for small businesses to emerge is acquiring a business insurance plan and most importantly, providing their employees with proper health care benefits. Those 2 would really contribute a lot to the productivity and safety of the company.

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