Health Coverage Tax Credit for Small Employers | Tax Tip of the Week | No. 43

One of the provisions of the Patient Protection and Affordable Care Act is a credit designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.  In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees.The maximum credit is 35% of premiums paid in 2010 by eligible small business employers.  In 2014, this maximum credit increases to 50%.The credit is specifically targeted to help small businesses that primarily employ low and moderate income workers.  It is generally available to employers that have fewer than 25 full-time employees paying wages averaging less than $50,000 per employee per year.There are also special rules for non-profit organizations to encourage health insurance coverage.Give us a call if you want to discuss the details of this new act.In Dayton, call 937-436-3133 and in Xenia, call 937-372-3504. Or visit http://www.bradstreetcpas.com. Rick Prewitt - the guy behind TTW...until next week.