Employers -- Learn About the Tax Credit for Providing Health Insurance

Now IRS.gov provides information to small employers about the new tax credit for providing health coverage.

The credit is 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.

“This credit provides a real boost to eligible small businesses by helping them afford health coverage for their employees,” said IRS Commissioner Doug Shulman. “We urge small businesses and tax-exempt employers to look closely at this important tax break — which is already effective — to see if they qualify.”

The maximum credit is 35 percent of premiums paid in 2010 by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. In 2014, this maximum credit increases to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible employers that are tax-exempt organizations.

The site is informative and easy to use.  It includes:

• A graphic to help employers quickly determine if they qualify for the credit; 
• Scenarios that explain how much certain businesses and exempt organizations would benefit from the credit; • Tax tips on taking the credit;  and,
• Questions and answers.


For more information and help on making the most of employer tax credits, visit Shoffner & Associates on line, or call us to make an appointment.  617-369-0111.