We previously sent out an e-alert to our subscribers notifying them of the Small Business Health Care Tax Credit. This tax credit can be taken for tax years 2010 through 2013, so it's not too late to take advantage of this credit that applies to tax-exempt employers.
If you are a tax-exempt employer who is eligible for the Small Business Health Care Tax Credit, the credit is refundable. This means that, even if you have no taxable income, you may be eligible to receive the credit as a refund so long as it does not exceed your income tax and Medicare tax withholding on your employees.
You will be eligible for the tax credit if:
- You have fewer than 25 full-time employees;
- You pay your employees an average wage of less than $50,000 a year; and
- You pay at least half of employee health insurance premiums.
Detailed information can be found on the IRS website here.