One of the most prevalent topics right now is health care and the impact on business. If you are a SBO, you may be directly impacted by this and could use some additional and current information.
To get money back or credit for your health care spend as an employer of a small business, you may or may not know that you could qualify for a health care tax credit. We would like to clarify a few points to know.
Business and Administration Eligibility Requirements
If saving money interests you, you will be happy to know that you can take action now to save on your health care costs. Just check out this scenario:
“If you pay $50,000 a year toward employees’ health care premiums — and if you qualify for a 15 percent credit, you save $7,500.” – See more
However, you are going to have to qualify. The requirements to be eligible are as follows:
- Having purchased coverage through the SBHOP marketplace (Small Business Health Options Program).
- Fewer than 25 full-time employees. Paying an average wage of $50,000 per year or less.
- Paying at least one half of employee health insurance premiums.
What changed from 2014
The most notable change from the IRS from last year is the increase in maximum credit. The amounts have increased to 35% of premiums paid for small tax-exempt employers and 50% for traditional small business employers.
Note: Anyone that is eligible can use this credit for 2 years
If you happened to have missed applying to use the Small Business Health Care Tax Credit, you are not discarded yet. Look back on you 2014 tax return and note whether or not you claimed the credit on your return. If not, you can file an amended return using form 8941 to make your calculations.
If you need any further help on gather more credit tax information on health care or any HR or payroll concerns, don’t hesitate to contact us for more information at CONTACT US NOW.
LUXA Enterprises specializes in hrm services, outsource accounting, and payroll services . We match up with ideal candidates for services by allowing small to mid-size businesses increase focus on their growth through outsourcing. If you want to know how we can help you, contact us today!