As a small business employer, are you aware of the health care tax credit that you are authorized to take advantage of? Under the Affordable Care Act you are able to claim certain tax credits if you fit the following criteria:
- Employ less than 25 full-time workers
- Spend less than $50,000 annually on wages
- Cover at least 50% of the premiums for your employee’s health care.
You will be able to take advantage of your tax credit during this year, however you must buy your employee health coverage through the Small Business Health Options Program. Additionally, you will only be allowed to take advantage of the tax credit for 2 years, consecutively.
A few changes have been made to the tax credit during the year of 2014. One of the most important changes states that the tax credit has increased to 50%! If you are a small tax-exempt employer, your tax credit has increased to 35%.
Once you have purchased your health plan through SHOP, you can use the IRS form 8941 in order to compute your credit. Next, you will file a 990-T form to claim. Take advantage of the Affordable Care Act, and claim your tax credit, today!
If you would like to request more information regarding health care tax credits for your small business, or would like to know if you are eligible to claim, please contact the Pacific Group, located in Laguna Hills. We are the best privately-held, full-service employee benefits brokerage firm in California, and employ only the most experienced individuals, who have the competence necessary to deliver superb services, and customer satisfaction. Whether your business is big or small, give us a call for each and every one of your employee benefit needs, today!