2014 Small Business Tax: Health Care

November 16, 2014

2014 Small Business Tax: Health Care

Small Business Health Care Tax Credit:
If you’re a small employer with fewer than 25 full-time equivalents, pay an average wage of less than $50,000 (as adjusted for inflation beginning in 2014) a year, and pay at least half of employee health insurance premiums you may be eligible for the Small Business Health Care Tax Credit.

With all the debate about the Affordable Care Act, small employers should make themselves aware of how this tax credit works. For 2014, the maximum credit increases to 50 percent of premiums paid for small business employers and 35 percent of premiums paid for small tax-exempt employers.

To be eligible for the credit, a small employer must pay premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace or qualify for an exception to this requirement. Also, the employer has to have fewer than 25 full-time equivalents, pay an average wage of less than $50,000 (as adjusted for inflation beginning in 2014) a year, and pay at least half of employee health insurance premiums.

The credit is available to eligible employers for two consecutive taxable years. For information on enrolling in the (SHOP) Marketplace, you can also go to https://www.healthcare.gov/small-businesses/provide-shop-coverage/enroll-in-shop/

We encourage small employers to discuss this credit with their tax advisor, email us at admin@albeancompany.com or call us at 512-244-4912.

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