A tax credit that small businesses may be unaware they are eligible for is the Health Insurance Credit. This credit became available in 2010 and in its first year, less than 15% of potentially eligible businesses claimed a credit. The credit is available for up to 35% of the employer’s contribution to an employee’s premiums. After 2014, this will increase to 50%.
To be eligible for the credit, a business must employ less than 25 “full-time equivalent” individuals and pay an average wage of less than $50,000. If you are a small business owner who pays employee health care costs or are thinking about starting, be sure to consider this credit on your next tax return.
To read more about the credit, click on the following link to read UHY’s newsletter on the topic. UHY LLP News Alert – Small Employer Health Insurance Tax Credit Disappoints
