Small Business Health Care Credit
Many small business owners are not taking advantage of the health care credit. According to GAO only 170,000 small businesses claimed the credit. It is estimated that 1.4 to 4 million small business are eligible.
What is the credit?
It is a credit that reimburses the business owner for up to 35% of employer insurance payments paid. In 2010 through 2013 the maximum credit is 35%. In 2014 and 2015 the credit will increase to 50% for employers.
What does this mean?
If an employer spends $10,000 per year in health insurance premiums, the employer can get a tax credit up to $3,500 for that year which can be used to reduced taxes and sometimes refunded.