What is the small business health care tax credit? You
may qualify for employer health care tax credits if you have fewer than
25 full-time equivalent employees making an average of about $50,000 a
year or less. To qualify for the Small Business Health Care Tax Credit,
you must pay at least 50% of your full-time employees' premium costs.
You don’t need to offer coverage to your part-time employees or to
dependents. Starting in 2014, the tax credit is worth up to 50% of your contribution toward employees' premium costs (up to 35% for tax-exempt employers). For additional information about the Small Business Health Care Tax Credit you can also visit the IRS website for calculators, forms and instructions.
What’s considered a small business? If you have 50 or fewer full-time equivalent (FTE) employees you're considered a small business under the health care law. As a small business, you may get employee insurance through the SHOP Marketplace. This applies to non-profit organizations too. If you have fewer than 25 employees, you may qualify for the Small Business Tax Credit. Non-profit organizations can get a smaller tax credit.