Many small businesses are still missing out on the health care tax credit. Less than half of the small businesses that qualify are taking advantage of the tax credit provided for under the “Patient Protection and Affordable Care Act of 2010.” Any small business may qualify for a tax credit if it pays at least 50% of its employees’ health care premiums at the single rate.
To qualify, the business must employ fewer than 25 employees (special treatment for less than full-time employees), with average annual wages of less than $50,000. The maximum credit is available to those businesses with 10 or fewer employees making an average of $25,000 or less. The credit decreases as the number of employees approaches 25 and the average wage approaches $50,000.
Tags: Health Care Credit
Written by: Doug Rodrigues