The federal tax credit will reimburse qualifying small businesses for up to 35% of the premiums they pay towards employee medical, vision and dental insurance. Tax-exempt organizations may qualify for a tax credit of up to 25%. To qualify for the full credit, the following criteria must be met:
- The company employs fewer than 25 full-time workers (or equivalent)
- Average annual wage per worker must be less than $50,000
- The employer must currently pay at least 50% of the total premium for employee coverage (not counting dependents)
Small businesses with fewer than 10 full-time employees that pay average annual wages of $25,000 or less may qualify for the full credit. The amount of the credit is reduced for companies with more full-time workers and higher wages, until it is phased out entirely for those with 25 or more full-time workers and average annual wages over $50,000.
Because eligibility rules are based in part on the number of full-time employees, not the total number of all employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.
Talk to a Health Insurnace Broker or Agent to get the most Accurate Cost and tax credits availiable to your company.
Pennsylvania Resources for Small Businesses
Pennsylvania small business owners can also refer to the following resources about owning and operating a small business in Pennsylvania:Pennsylvania Small Business Guide
Information about starting and managing a business in PennsylvaniaPennsylvania Department of Revenue
Department responsible for income taxes for Pennsylvania for individuals and small businesses