Health Care Reform: Health Care Tax Credit for Small Employers
The Affordable Care Act (ACA) created a tax credit for certain small employers that provide health insurance coverage to their employees. In general, to be eligible for the health care tax credit, an employer must:
- Have fewer than 25 full-time equivalent employees (FTEs);
- Pay average annual wages of less than $50,000 ($50,800 for 2014) per FTE; and
- Pay at least half of employee health insurance premiums.