The Internal Revenue Service (IRS) is offering online tools to help small businesses take advantage of the Small Business Health Care Tax Credit, which was included in the Patient Protection and Affordable Care Act and signed into law March 23 by President Obama.
The tax credit is designed to help small businesses afford health insurance coverage for their employees .The credit is worth up to 35 percent of a business’ premium costs in 2010, and the amount increases to 50 percent of premium costs in 2014.
In order to qualify for the credit, an employer must have fewer than 25 full-time equivalent employees (FTE) for the tax year; cover at least 50 percent of its employees’ premium costs; and offer average annual wages of less than $50,000 per FTE.
For more information, including scenarios illustrating how the credit applies in varying circumstances and how to determine which businesses are eligible for the tax credit, visit the
IRS website.
For an overview of what to expect from the health care reform bill over the course of the next several years, ABC offers a
health care timeline.