Small Business Health Care Tax Credit

The Small Business Health Care Tax Credit, part of the Patient Protection and Affordable Care Act of 2010, is now available to California small business and tax-exempt employers that provide health care coverage to their employees.
For the 2011 filing season, the Internal Revenue Service (IRS) is allowing an unprecedented tax credit equaling up to 35 percent of the health insurance premium costs that a small business incurred for insuring its employees, and it will increase to 50 percent by 2014.

To qualify, an employer must have fewer than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible). A qualifying employer also must pay average annual wages below $50,000.
The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.
More than 600,000 California businesses are eligible for this tax credit and yours may be one of them! To determine if your business or tax exempt organization qualifies for the Small Business Health Care Tax Credit, visit the IRS website at http://www.irs.gov/businesses/small/ or consult with your tax preparer.
For more information on the tax credit and how other provisions of the Patient Protection and Affordable Care Act specifically affect you and your business, visit http://www.healthlawguideforbusiness.org/.