Small Business Tax Credit

by AdminJ on April 25, 2011

Looking for a new Tax Credit?

 There is a new Small Business Tax Credit for providing Health Insurance to your employees. You may not realize the tax credits that you can claim on your federal income tax filing due to the Patient Protection and Affordable Care Act. If you provide Health Insurance to your employees or have been wanting to start, you can take advantage of this credit. Please give our office a call with any questions you may have or for a Free Group Health Insurance Quote, (818) 709-8442.


Is your Business Eligible?


You must meet the following guidelines to be eligible for this federal income tax credit:


  • Company Size:

A qualifying employer must have less then the equivalent of 25 full time workers when totaling all the individuals’ hours of employment.


  • Provide Health Coverage:

Employer must confirm they cover at least 50% of the cost of the Health Insurance coverage for their employees. The employer must know the cost they pay to cover a single full time employee’s insurance premium.


  • Wages Paid:

Employers with 10 or fewer full time equivalent employees, paying annual average wages of $25,000 or less will receive the max credit of 35%.


Employers with greater then 10 and fewer then 25 full time equivalent employees, paying annual average wages of less then $50,000 will also receive the minimum credit of 35% of the premiums paid.


All tax exempt organizations that meet either of the above criteria can only claim the minimum credit of 25% of premiums paid.


  • Credit Amount & Years Available:

Stated by the IRS “Small Businesses can claim the credit for 2010 through 2013 and for any 2 years after that. Tax years 2010-2013, the maximum credit is 35% of the premiums paid by small businesses and 25% of premiums.


Beginning in 2014, maximum tax credit will increase to 50% of premiums paid by eligible small business employers and 35% of premiums paid by eligible tax exempt organizations.


For any Health Insurance quote you can always go to our website:

Call us anytime, 818-709-8442

Leave a Comment

    Previous post:

    Next post: