Federal tax credits are available now for small businesses and nonprofits to help cover the cost of health insurance for employees. In 2014, the tax credit will increase, paying up to 50 percent of premium costs for small businesses and 35 percent of premium costs for nonprofits. This credit is available to employers for two years.
To qualify, small employers must:
- Provide health insurance to employees and cover at least 50 percent of the cost of single coverage.
- Employ fewer than 25 full-time workers (employers with fewer than 50 part-time workers may be eligible).
- Pay average annual wages below $50,000, excluding the wages of owners and their families.
Use our calculator below to find out if you might qualify for a tax credit, and if so, what amount you may expect. Keep in mind that results from the calculator are an estimate. Health plan rates for 2014 have not been finalized yet. Please consult your tax advisor for further assistance.