Providing Employee Health Insurance??

                                                                    
                                            
Do you provide health insurance for your employees? If so, take advantage of the Small Business Health Care Tax Credit!

For tax years 2010 through 2013, the maximum health care tax credit is 35% for small business employers and 25% for small tax-exempt employers such as charities. An enhanced version of the credit will be effective beginning January 1, 2014, when the rate will increase to 50% and 35%, respectively. This means that you will effectively get a rebate on the health care premiums you have paid for your employees.

To be eligible for this credit, an employer must cover at least 50% of the cost of single (not family) health care coverage for each employee. The employer must also have fewer than 25 full-time equivalent employees (FTEs) and those employees must have average wages of less than $50,000 a year. The amount of the credit an employer receives works on a sliding scale. The smaller the business or charity, the bigger the credit. So if the employer has more than 10 FTEs or if the average wage is more than $25,000, the amount of the credit received will be less.  Ask your tax preparer for more information to claim this credit at tax time next year!