Small Business Health Care Tax Credit
Floridian Quote is a leading health insurance consultant firm with extensive experience in the group and individual health insurance field. The company has access to various health insurance company plans and pricing. Floridian Quote can help clients find the right plan to fit their business or personal needs and budget. It serves clients in Miami, Orlando, Tampa, Jacksonville, Florida and surrounding areas.
Check if You Qualify for Health Care Tax Credit
If you are an employer having fewer than 25 full-time equivalent employees with an average salary of about $50,000 a year or less, you may qualify for employer health care tax credits. All of the following conditions must be fulfilled in order to qualify for the tax credit:
- The number of full-time equivalent (FTE) employees in your business is below 25
- The average salary of an employee is about $50,000 or less
- At least 50 percent of the premium costs of your full-time employees are borne by you
- You offer coverage to your FTEs through the SHOP Marketplace
- The value of tax credit is not more than 50 percent of your contribution toward the premium costs of your employees (up to 35 percent in case of tax-exempt employers)
Other Notable Aspects
If you have part-time employees (those working fewer than 30 hours a week), you are not under an obligation to offer coverage to them or to dependents in order to qualify for the tax credit.
If you provide self-insured health coverage to your employees, then irrespective of your size, you are required to file an annual return reporting specific information for each employee you cover.
In some cases, affiliated employers with common ownership or part of a controlled group are required to aggregate their employees in order to determine their size of workforce.
Smaller Businesses Get More Benefit
Companies with fewer than 10 employees receiving an average salary of $25,000 or less a year will be eligible for the highest tax credit. In other words, the smaller the company, the larger will be the credit.
How does the Tax Credit Work: Example
- Total number of employees: 10
- Total salary @ $25,000 per employee: $250,000
- Employee premium contribution by the employer: $70,000
- Tax Credit Amount: 50% of Employer’s Contribution: $35,000
Health care employers who have more questions about tax credit, or want to receive more information about competitive insurance plans should get in touch with Floridian Quote. The company serves clients in and around Miami, Orlando, Tampa, Jacksonville, Florida and other places.
Is it necessary to purchase coverage through the SHOP Marketplace in order to claim the tax credit?
Yes. You can purchase coverage for your employees in several ways. However, it is necessary to use the SHOP Marketplace in order to qualify for the Small Business Health Care Tax Credit.
How does it Work if I have Seasonal Workers?
Seasonal workers may be included in the full-time employee and wage calculation if they work for your more than 120 days during the tax year. Get in touch with the IRS to know more about seasonal workers.
We are health insurance consultants | agents with many years of experience in the health insurance field and access to multiple health insurance company’s plans and pricing. We will work with each you to find the right group or individual health insurance plan to fit your needs and budget. Serving clients in and around Greater Jacksonville, Orlando, Tampa, Miami, Florida and more. Contact us at 866-217-2873.