The small business health care tax credit is changing in 2014. Since 2010, organizations (including nonprofits) with fewer than 25 full time equivalent employees, paying average wages of less than $50,000 and paying at least 50% of employees’ health insurance premiums have been receiving thousands of dollars from this credit.
Starting in 2014, employers will only be eligible for the credit if they purchase health insurance through the new SHOP exchange, which opens October 1, 2013. The maximum credit will increase to 35% of premiums paid for nonprofits, but it’s only available for two more tax years after 2013. Let us know if you need more information or want to claim the credit for a prior year.
October 1, 2013