Small Business Health Care Tax Credit
A tax credit is available to small business employers who provide health care insurance for employees. Employers must have less than 25 full time equivalent employees, and average annual wages paid must be less than $50,000 in order to qualify for this credit. The credit is 50% of premiums paid, but in order to be eligible for the credit, a small employer must pay the premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace.
The credit is available to employers for two consecutive taxable years. Employers can still claim a business expense deduction for premiums paid in excess of the tax credit received. If you think you may qualify for this credit, please let us know when you submit your tax organizer. Please contact our office if you would like more information.