Sunday, April 25, 2010
Small Business Health Care Tax Credits
The recently enacted federal health care legislation will provide certain small businesses with income tax credits for the next several years as a way of subsidizing the employer’s cost of health insurance premiums. The IRS has mailed postcards to over 4 million small businesses to promote the program. The program provides:
- For tax years 2010 through 2013, a 35 percent income tax credit for employer health insurance costs for employers with 10 or fewer employees with an average wage of $25,000 or less. Lesser credits are provided for employers with 11 to 25 employees with an average wage of less than $50,000.
- For tax years after 2013, up to a 50 percent tax credit for an eligible small employer’s health insurance costs purchased through a Health Insurance Exchange. An employer could only claim this credit for 2 years.
- The maximum credits for small non-profit employers are 25 percent through 2013 and 35 percent after that date.
- No credit for sole proprietors.
See the IRS website for details of the Small Business Health Care Tax Credit. Contact Ron Wineholt for further information at .(JavaScript must be enabled to view this email address).
