Announcements | Articles | The Counselor


For Immediate Release

Contact:
Nina McCann
Director of Public Relations
Forchelli, Curto, Deegan, Schwartz, Mineo & Terrana, LLP
516-248-1700
nmccann@ForchelliLaw.com

Notice: Utilizing the Small Business Health Care Tax Credit

This notice is for any of our clients who own or run a small business or tax-exempt group with fewer than 25 full-time employees. If you do, the Small Business Health Care Tax Credit can help you provide insurance to your employees. You may be able to save on your taxes if you paid for at least half of their health insurance premiums. Here are several things that you should know about this important credit:

  • Maximum Credit.  For tax years beginning in 2014 and after, the maximum credit is 50 percent of premiums paid by small business employers. The limit is 35 percent of premiums paid by tax-exempt small employers, such as charities.

  • Number of Employees.  You may qualify if you had fewer than 25 employees who work full-time, or a combination of full-time and part-time. For example, two half-time employees equal one full-time employee for purposes of the credit.

  • Qualified Health Plan.  You must have paid premiums for your employees enrolled in a qualified health plan offered through a Small Business Health Options Program, or SHOP, Marketplace. (There are limited exceptions to this requirement.)

  • Average Annual Wages.  To qualify for the credit, the average annual wages of your full-time equivalent employees must have been less than $51,000 in 2014. The IRS will adjust this amount for inflation each year.

  • Half the Premiums.  You must have paid a uniform percentage of the cost of premiums for all employees. The amount you paid must be equal to at least 50 percent of the premium cost of the insurance coverage for each employee.

  • Two Year Limit.  An eligible employer may claim the credit for any two-consecutive taxable years, beginning in or after 2014. This credit can be claimed for two consecutive years, even if you claimed the credit at any point from 2010 through 2013.

  • Tax Forms to Use.  All employers use the Form 8941, Credit for Small Employer Health Insurance Premiums, to calculate the credit. For-profit businesses claim the credit on Form 3800, General Business Credit. Tax-exempt organizations claim it on Form 990-T, Exempt Organization Business Income Tax Return.

If you are a for-profit business and the credit is more than your tax liability for the year, you can carry the unused credit back or forward to other tax years. If you are a tax-exempt employer, you may be eligible to receive the credit as a refund. This applies so long as it does not exceed your income tax withholding and Medicare tax liability for the year.


If you think you may qualify for the credit, be sure to discuss it with your accountant.

Forchelli, Curto, Deegan, Schwartz, Mineo & Terrana LLP

Founded in 1976, Forchelli, Curto, Deegan, Schwartz, Mineo, & Terrana LLP is one of Long Island's most acclaimed and distinguished law firms. Headquartered in Uniondale, NY, the Firm is conveniently located for clients in Nassau and Suffolk. The Firm employs 60 attorneys who provide counsel to a broad range of clients, including national, regional and local businesses, major real estate developers and organizations, banks, insurance companies, municipalities, educational institutions, and individuals. Personal attention and quality representation that is both practical and cost-effective are hallmarks of the Firm's policy towards clients.

*The Omni, 333 Earle Ovington Boulevard, Suite 1010, Uniondale, New York 11553*

« Back to Announcements Index

The OMNI
333 Earle Ovington Blvd.
Suite 1010
Uniondale, NY 11553
t: 516.248.1700
f: 516.248.1729
» View directions

e: info@forchellilaw.com
www.forchellilaw.com

Home | About The Firm | Attorney Profiles | Practice Areas | News & Publications | Contact Us

The OMNI • 333 Earle Ovington Blvd. • Suite 1010 • Uniondale, New York 11553
Phone: 516-248-1700 • Fax: 516-248-1729
Email: info@forchellilaw.com

©1998-2012, Forchelli, Curto, Deegan, Schwartz, Mineo & Terrana, LLP • All Rights Reserved.
Attorney Advertising • Prior results do not guarantee a similar outcome