Small Business Healthcare Tax Credits

According to This e-mail address is being protected from spambots. You need JavaScript enabled to view it , Contributing Editor of aispub.com, under the small-business tax credit in the health reform law, employers have a chance to receive up to a 35% credit on their contributions to employees’ health insurance premiums. While some stakeholders are calling the provision a triumph, others claim it is too narrow and that it will not incentivize employers to begin paying for coverage. Experts on both sides agree that the provision is easy to misconstrue and has several hitches, making it most beneficial to very small, low-wage businesses.

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What does this mean to you? For you to qualify for the tax credit,

You must have fewer than 25 full-time employees
You must contribute at least 50% of the total premium cost for employee health insurance, and
You pay average annual wages of less than $50,000 per employee.

When can I get my credits?

Between 2010 and 2013, the maximum credit — 35% — will be available to employers with 10 or fewer employees and annual wages of less than $25,000. Organizations with more employees and higher wages will see smaller credits. Tax-exempt employers meeting the requirements can receive up to 25% of their contribution in cash.

After 2014, small employers must purchase coverage through the health insurance exchanges to be eligible for a tax credit. The maximum credit will move up to 50% of an employer’s contribution (35% for a tax-exempt business). Small businesses can claim the credit for a total of up to six years — four years before 2014 and any two years after. The provision is retroactive to Jan. 1, 2010.

Azonic Insurance provides group health insurance for small business. If you have any questions about these tax credits please let us provide you with a

Free Group Health Plan Checkup – call 949-642-6668.

See the full article online at http://www.aishealth.com/Bnow/hbd072710.html