Just a reminder for Small Businesses
With the launch of the Small Business Health Options Program (S.H.O.P.) exchanges on the horizon,
I thought it would be good time to remind small businesses about a couple of changes to the Small Business Health Care Tax Credit that are happening in 2014. The maximum amount of credit that can be claimed by a business is going up in 2014. It is currently set at a maximum of 35% of non-elective contributions made by the employer towards healthcare costs. This will go up to 50% in 2014. This means more potential credit for employers that qualify. The other major change comes in regards to eligibility. Employers can only get the credit, beginning in 2014, if they are offering coverage to their employees through a S.H.O.P. exchange. This means that if an employer chooses to offer coverage through a private carrier, regardless if they meet the other eligibility requirements, they cannot obtain the credit. So, if you are a small employer out there that is taking advantage of the credit, make sure you understand this new eligibility requirement, so that you can cash in on the additional credit.