Does Your Small Business Qualify for a Health Insurance Tax Credit?

NFIB’s members continue to report healthcare as their number one problem, and the implementation of Obamacare only creates more concern and uncertainty for small business owners.  While many questions remain unanswered, one thing seems likely—Small business will pay more for healthcare.

A recent poll of NFIB/NY members found that 94% of small business owners expect premium rates to increase when the employer mandate becomes effective in January 2015. And keep in mind that the strongly opposed Small Business Health Insurance Tax will further drive up the cost of premiums too.

Is there any relief in sight?

Some businesses may qualify for a health insurance tax credit to help offset part of the cost of health insurance.

  • ·         Employers with fewer than 25 employees and average wage rates below $50,000 may be eligible for tax credits to offset part of the cost of employee health insurance coverage. The amount of the credit shrinks once a business surpasses 10 employees and/or an average wage of $25,000.
  • ·         The credits can only be used if there are tax liabilities to offset.
  • ·         The credits can offset up to 35% of the employer portion of premium contributions through 2013.
  • ·         The maximum percentage rises to 50% in 2014 but is only obtainable when purchasing insurance through a SHOP exchange.
  • ·         Beginning in 2014, the credit is only available for a maximum of two years.

Calculate the health insurance tax credit for your business here.

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About Mike Durant

Mike Durant was named New York State Director of NFIB in May 2011. Prior to joining NFIB as the Assistant State Director in May 2010, Durant began his career in the New York Senate working in the Office of Member Services. From there, he served in a number of positions during former New York Governor George E. Pataki’s administration. As a Research Specialist in the New York State Office of Demographic Policy, Mike was responsible for drafting a redistricting proposal for Governor Pataki. In addition, Mike served as a Research Specialist for the Empire State Development Corporation, as well as the Associate Commissioner of Human Resource Management with the New York Department of Labor. Durant also spent four years working at the Questar III BOCES as a specialist focusing on the complex formulas that drive aid to school districts across the state while also taking a lead role in the state legislative/budget process as it related to education policy. These past positions have given Mike a deep understanding of the complex political economics of the State of New York. Active in the community, Durant has served on a number of boards in both the village of Ballston Spa and Town of Milton. Durant received his bachelor’s degree from Siena College in Loudonville, New York and resides in Ballston Spa with his wife and two children.
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