Tax Credits for Small Business Employers
Who Provide Health Care Coverage for Workers

Call Beucler Company CPA to assist you with maximizing your business income tax deductions.  

Income Tax laws can be difficult to understand and are always changing.  Make sure you are maximizing your deductions and that your records are audit proof.

The new health reform law gives a tax credit to certain small employers that provide health care coverage to their employees beginning with tax year 2010 through 2013.  Small employers that provide health care coverage to their employees and that meet certain requirements generally are eligible for a tax credit for health insurance premiums they pay for certain employees.

Eligibility Requirements:

  • The employer must have fewer than 25 full-time equivalent employees for the tax year.

  • The average annual wages of its employees for the year must be less than $50,000 per full time employee.

  • The employer must pay at least 50% of the premium based on the single (employee only) rate for each employee enrolled in coverage.  

  • A tax-exempt organization can be a qualified employer.  However special rules apply in calculating the credit for a tax-exempt qualified employer.  

Only premiums paid by the employer under an arrangement meeting certain requirements are counted in calculating the credit.  For tax years beginning in 2010 through 2013, the maximum credit is 35 percent of the employer’s premium expenses that count towards the credit.  The maximum credit for a tax-exempt qualified employer is 25 percent of the employer’s premium expenses that count toward the credit.  

The taxpayer should seek advice
Based on the taxpayer’s particular circumstances
From an independent tax advisor

Beucler Company CPA, Inc.
2503 Summit St.
Columbus, OH  43202
(614) 784-1099

Internal Revenue Service Circular 230 Disclosure:  As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or matter addressed herein.