Small Business Tax Credits

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Federal law gives a tax credit to eligible small employers who provide health care coverage to their employees. A small employer is eligible for the credit if:

  •  The business has fewer than 25 full-time equivalent employees
  • the average annual wages of its employees are less than $50,000 (adjusted for inflation beginning in 2014) excluding owners and their relatives

  • it pays a uniform percentage for all employees that is equal to at least 50% of the premium cost of employee-only insurance coverage.

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Each part-time employee counts as a fraction of a full-time equivalent employee (for example, two half-time employees equal one full time equivalent employee for purposes of the credit).

The plan must be purchased through the Health Connector. Our agency is licensed with the MA Health Connector to help shop and obtain the tax credits you deserve. Click here to learn more specifics on Small Business Health Care Tax Credits.

*This is not meant to be legal or tax advice. Please consult with legal and tax advisors.

*This info was taken from the IRS website. The IRS website prevails with any discrepancy.