How to Get the ObamaCare Tax Credit for Your Small Business
Much of the conversation surrounding ObamaCare and business is not very positive. Many businesses are making radical changes, reducing staff sizes and benefits, cutting payroll, etc. There are, however, some businesses that, because of a tax credit, will benefit as a result of ObamaCare.
That is, ObamaCare includes a provision allowing businesses with 25 or fewer employees to receive a tax savings directly related to the premiums they pay towards an employee’s health insurance.
The ObamaCare Tax Credit
The great news for those employers that qualify is that starting in 2014 the tax credit will increase! The chart below breaks down the current ObamaCare tax credits as well as the upcoming tax credits. While the credits aren’t enough to completely offset offering health insurance, they may make it possible for small businesses to offer these benefits, which will in turn be both a tool for recruiting and retaining top talent.
Non-Profits Get the Tax Credit, Too
Even though they don’t pay federal income tax, non-profit organizations of 25 or fewer employees may take advantage of the ObamaCare tax credit, too. If they apply, these non-profit groups will receive a check from the IRS for the credit they are due as a result of their contributions.
Download the Application
Whether you’re a for-profit or non-profit organization, the ObamaCare tax credit may make it easier to offer health benefits, giving you a competitive edge to find and keep great employees.
Download the official IRS forms: