Small business employers may be eligible for a healthcare tax credit that helps reduce the annual tax liability, but there are changes coming to the credit for 2014. The requirements are minimal, but must be met in order to apply the credit. Employers who are not tax-exempt can expect a credit of up to 50 percent of the amount paid for the cost of employee premiums. Tax-exempt businesses, also known as non-profits, can get up to 35 percent of the premiums credited.
The requirements for the tax credit for small groups in 2014 are:
A similar equation goes for the wages. Total up the entire amount paid in wages for the year, then divide by the amount of employees. If the final sum is under $50,000, the test has been passed.
For more information about the upcoming changes to healthcare in the Sonoma County, contact Sackett & Associates today to talk to an insurance agent.