issued final rules on the Small Business Health Care Tax Credits

issued final rules on the Small Business Health Care Tax Credits -

On June 30, 2014, the Internal Revenue Service (IRS) final rules on local health care tax credit business under the Affordable care Act (ACA) available. The tax credits are intended to buy to make it more affordable for small business health insurance for their employees.

The final regulations, the requirements for small care tax credit business health. The loan has been implemented since the 2010 tax year available, but was noticed by IRS not only formal rulemaking. The final rule does not differ dramatically from published their proposed version in August last year.

Eligibility for the Small Business Health Care Tax Credit

After the final regulations small employers for the tax credit into consideration if they meet all three of these products:

• employer no more than 25 full-time equivalent (FTE) employees who paid [1945010hat] average annual salary of not more than $ 50,800 each.

• employer contributes at least 50% of the premium costs are registered in the name of each employee.

• employer buys a group health insurance through SHOP their state marketplace (or qualifies for an exemption from this requirement, such is no SHOP plans are available in the region).

The maximum credit 50 percent of premiums paid for small businesses is the employer and the 35th Percent of the premiums for tax-free employer pays

See: Small Business Health Care Tax Credit FAQs - 2014

Once makes a small employer submits the tax credit, they will only be able to continue to do so for two years. One commentator told the IRS that the period of two years could lead some employers to employees that contribute to set bonus coverage once the credit expires. The IRS responded that the cap imposed by the law.

Small employers must plan to purchase through the SHOP Exchange

to buy a health plan through the SHOP marketplace The requirement for small employers is new for 2014 This request may come as a surprise for small employers who have not reached required to the SHOP market use reporting in recent years to acquire.

. Read the rules on the Federal Register here

Tweet