If you have a business or a 501(c)(3) not-for-profit with fewer than 25 full-time equivalent employees, you may want to take a closer look at the Small Employer Health Insurance Tax Credit.
In past years, the maximum credit was 35% of the employer’s contribution toward the employees’ health insurance premiums. If you had tried to calculate the credit in the past, you may know it is a complex calculation and in the end, may have not been worth the trouble.
However, in 2014, the maximum credit has been increased to 50% of the employer’s contribution toward the employees’ health insurance premiums (35% for nonprofits). The credit is available for a maximum of two years. The Journal of Accountancy has published a six-page article that gives more details on the subject. To download the article, click here. Please contact your tax advisor for more details and how this tax credit may or may not apply to your particular situation.
Circular 230 Disclosure – Please be advised that, based on current IRS rules and standards, any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This advice is intended solely for the person to whom it is addressed; no one else should rely on the tax advice provided herein.