Affordable Care Act (Healthcare Reform) and Multicultural Populations cont.
We continue our 12 part blog series on the Affordable Care Act and Multicultural Populations.
How the New Small Business Health Care Tax Credit Works – Part 8
By Martha C. Rivera, Director, Strategy and Insights, and Alejandro Ramos-Martinez, Junior Executive
Under the Affordable Care Act, many small employers are now eligible to receive a tax credit to pay for up to 35 percent of the average cost of a small group health insurance plan in their state (or a 25 percent refund for nonprofits). Congress designed this credit with the intent of providing the greatest help to those businesses and workers who are most in need—the smallest employers who face the highest premiums and are the least able to offer coverage to their workers. As such, small businesses with fewer than 50 workers (or the equivalent) and average wages of less than $50,000 are now eligible to receive a credit, but the smallest firms with the lowest wages—those that employ 10 or fewer workers who earn an average wage of less than $25,000—are eligible for the greatest help and receive the full 35 percent tax credit (or a 25 percent refund for nonprofits). From there, the size of the credit phases out on a sliding scale.
Look for Part 9 of our Affordable Care Act and Multicultural Populations in a future blog.
Source: http://www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-for-Small-Employers
