Have you received a letter from IRS concerning your qualifications for a Small Business Health Care Tax Credit?
Beginning the week of April 19, the IRS sent over 4 millions letters to small business owners alerting them of the new health care tax credits and encouraging them to check their eligibility. The new Internal Revenue Service Small Business Health Care Tax Credit helps small businesses and small tax-exempt organizations across the nation afford the cost of covering their employees’ health care benefits.
What are the Small Group (Business) Why Is Global Health Important Eligibility Rules?
For-profit and tax-exempt employers may qualify. However, all three of the following criteria must be met before tax credits can be applied:
The employer must cover at least 50 percent of health care coverage costs for workers based on the employee-only rate.
The employer must have no more than the equivalent of 25 full-time Health News In Hindi workers…owners and family member not included.
The employer must pay average annual wages below $50,000
The maximum credit is worth up to 35 percent of a small business annual health insurance premium costs in 2010 and 25 percent for tax-exempt January 1, 2014, this rate increases to 50 percent and 35 percent for tax-exempt employers.
The credit gradually phases out for employers with average wages between $25,000 and $50,000, and for employers with the equivalent of between 10 and 25 full-time workers.
Employer Notification/Support Materials
The IRS is informing potentially eligible small business groups about this tax credit. Visit the IRS site for additional support materials, including a video and frequently asked questions.