Small Business Health Care Tax Credit
Do you own or run a small business or tax-exempt group with fewer than 25 full-time employees? If you do, you should know that the Small Business Health Care Tax Credit can help you provide insurance to your employees. You may be able to save on your taxes if you paid for at least half of their health insurance premiums.
A small business tax credit may be available for employers who purchase insurance coverage through the Shop Marketplace and who have less than 25 employees. The credit could be worth up to 50% of the insurance plan’s premium cost. The employer paid portion of the insurance plan’s premium cost is deductible on the employer’s business tax return; however, the amount deducted would be reduced by the amount of small business tax credit allowed.