Are you a small business trying to take advantage of the new health insurance tax credits available under healthcare reform? Are you totally confused by how to calculate how much in small business health insurance tax credits you are eligible for?
If so you’re not alone. Between questions of how many employees may be eligible, how much you’re paying in wages, and how much you pay in health insurance premiums… well, as I always say, most of us aren’t accountants for a reason!
Believe if or not, the Internal Revenue Service (IRS) is actually trying to help small businesses plan out how much they may be eligible for in health insurance tax credits on their website, though. The IRS has provided small business with a nifty worksheet to help calculate their tax credits on their website, and we think it’s worth taking a look at if you’re planning to use the tax credits this year:
Under healthcare reform, a small business may claim a federal tax credit worth up to 35 percent of what the business spends on health insurance for its employees. To qualify for the tax credits under healthcare reform, a small business must have fewer than 25 full-time employees, have average annual wages of $50,000 or less, and cover at least 50 percent of the cost of healthcare for its employees. The tax credits are calculated on a sliding scale, with the full 35 percent credit going to small businesses with 10 or fewer full-time employees and average annual salaries of $25,000 or less.
It is estimated byat by 2013, as many as 3.4 million workers may work in companies that take advantage of the small business health insurance tax credit.
Are you planning to use the small business health insurance tax credits this year? Tell us about it!
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