Companies that purchase health care insurance and have less than 25 employees may be able to claim a tax credit. The credit varies according to size and average wages.
The maximum credit of 35% of premiums paid in 2010 is available to small-business employers with 10 or fewer workers that have an average salary of $25,000. The rate will increase to 50% in 2014. The credit phases-out gradually for firms with average wages between $25,000 and $50,000, and with the equivalent of between 10 and 25 full-time workers.
The credit took effect on January 1, 2010, and is designed to help small employers that mainly employ low- and moderate-income workers. Eligible companies must contribute at least 50% of their employees’ premiums. Firms can claim the credit for 2010 through 2013 and for any two years after that. Read more information here.
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