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Do you Contribute to Your Employees’ Health Insurance?

by | Dec 12, 2018 | Deadlines | 0 comments

The Small Business Health Care Credit is a tax credit to small businesses that provide health insurance coverage to their employees. In order to qualify, the following criteria must be met:

  • You must pay the premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) marketplace.
  • You must cover at least 50% of the employee-only health care coverage for each employee.
  • You have fewer than 25 full time “equivalent” employees.
  • The average annual wages must be less than $50,000 per year.

The maximum credit is equal to 50% of the premiums paid (subject to limitations) and is available for two consecutive taxable years. Any unused credit can be carried forward to future tax years.