IRS issues Final Rules on Tax Credit for Small Employers Offering Health Coverage to Employees

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irs health coverageThere has been a lot of talk about all of the problems with the Affordable Care Act (Obamacare) and the costs for taxpayers. There is one benefit for small business owners.

If you furnish qualified insurance to your full time employees, you have less than 25 full-time equivalent employees and the average annual wage of all FTEs is less than double $25,400 (for 2014) you have a credit coming to you. There are some details, but basically you’ve got a possibility of a 50% tax credit for the insurance cost.

That’s tax credit…not deduction, so it’s money directly in your pocket.

The IRS has just issued final regulations on this. You can read them at:$File/healthRTJune26.pdf

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