Is your company taking advantage of healthcare credits? Ask one of our qualifed health brokers to review your company's eligibility.
If You Are A Small Business...
- with fewer than 25 full-time equivalent employees,
- that pays an average wage of less than $50,000 a year, and
- pays at least half of your employee health insurance premiums...
...Then There Is A Federal Tax Credit That May Put Money Back In Your Pocket.
When we run your payroll, we have access to the data to make the most of healthcare tax credits
The Covered California Calculator can be found here.
We can take care of the calculations. Please contact us for assistance.
How will the tax credit make a difference for you?
Small businesses that purchase coverage through Covered California for Small Business may be eligible to receive a federal tax credit to help offset the cost of providing health insurance. The amount of credit you are eligible to receive works on a sliding scale. The smaller your business and/or the lower your annual average wage, the larger your credit will be.
Here’s how it can help:
- You may be eligible to receive up to 50 percent of employee premiums paid or 35 percent of employee premiums paid if you are a tax-exempt employer
- The tax credit is available for two consecutive, taxable years. Even if you are a small business who did not owe tax during the year, you can carry the tax credit backward or forward to other tax years.
- Eligible small businesses can also claim a business expense deduction for the premiums in excess of the tax credit. That’s both a tax credit and a deduction for employee premium payments.Tax-exempt employers may be eligible to receive the tax credit as a refund as long as it does not exceed the income tax withholding and Medicare tax liability.
Can you claim the tax credit?
To be eligible for the federal tax credit…
- You must purchase employee health insurance through Covered California for Small Business.
- You must pay at least 50 percent of the cost of health coverage for each of your employees.
- You must have fewer than 25 full-time equivalent employees (FTEs).
- Your employees must have an average annual wage of less than $50,000 per year (as adjusted for inflation beginning in 2014).