Small Business Tax Credit

Small Group Tax Credit

With April 15th right around the corner, here’s some information about the Small Business Tax Credit that is available to employers that have fewer than 25 full-time equivalent employees. This tax credit is available to employers that maintained a “qualifying arrangement” under which the employer pays a certain percentage of the premiums (generally a minimum of 50%) for each employee enrolled in the employer’s health plan. The logic behind this credit is that it encourages employers to continue to offer a group medical insurance plan, instead of dropping coverage altogether. This was included in the Patient Protection and Affordable Care Act of 2010. If you have questions or would like more information, please contact us. If your accountant or CPA has any questions about this, please feel free to have them contact us as well.

 

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