December 11th, 2010 – Many small businesses with employer sponsored group health insurance plans may be eligible for a significant federal tax credit in 2010. This tax credit is one of the provisions of the Patient Protection and Affordable Care Act, better known as Healthcare Reform or “ObamaCare.”
The tax credit is available to businesses with fewer than 25 full time employees and with average wages less than $50,000. The tax credit can be as high as 35% of the premium paid by the employer, if the employer paid at least 50% of the employees premium. Full time employees are considered those who work 40 hours per week for 52 weeks out of the year. For part time employees the tax credit is reduced appropriately.
Not surprisingly, the calculations and requirements are a bit complex and you’ll want to consult with a tax professional for specific calculations.
