The developed Affordable Care Act (ACA), the small Business Health Options program (SHOP Marketplace) with more choices to make small employer for their health plan. One of the aspects of the SHOP marketplace that makes it attractive for small businesses, the Small Business Health Care Tax Credit available to some small employers. According to a recent IRS notice, the current federal budget sequestration is to have an impact on the Small Business Health Care Tax Credit program for tax-free employer. announced
reduction in the Small Business Health Care Tax Credit
, the Internal Revenue Service recently that the current federal budget sequestration will reduce refunds for tax-exempt employers whose payments processed 1 October 2014 until 30 September 2015 by 7.3 percent.
According to the IRS notification sequestration reduction rate "unless and until a law that the impact or otherwise cancels the sequester." be applied, the sequestration is only to change reduction rate, are subject to.
The IRS also noted that the seizure is made for non-exempt employer tax credits Small Business Healthcare effect ", as the credit non-refundable credit for non-tax-free employer."
, the affected tax exempt employer notification received, that part of their requested payment was subject to sequester and reduce the amount.
Read the IRS notice here.
background on the marketplace SHOP
In the context of health insurance marketplaces of the ACA, there is an option for small businesses, the SHOP marketplace called. This is a new way for small businesses with fewer than 50 employees (or less than 100 in some states) to acquire a traditional group health insurance. Small businesses who want to access tax credits small businesses need a plan SHOP buy (unless there are no plans SHOP in the region).
Background on the Small Business Health Care Tax Credit
The small business health insurance tax credit was created to support small business health insurance employees in the provision. The tax credit is worth up to 50 percent of a small business' contribution to employee premium costs.
tax-exempt employers still claim the credit?
Yes. According to the IRS, a tax-exempt organization, described in section 501 (c) may be granted for the loan as long as the entity meets the other criteria in order to be eligible. the credit is refundable, unless they organize withholding income tax and Medicare does not exceed tax liability.
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