Details of the federal Affordable Care Act passed in 2009 may not be familiar to many of the small businesses and small tax-exempt organizations that will be able to use it. As part of the President’s health reform plan, it’s intended to help them afford the cost of covering their employees. While the federal government defines a small employer as one having 50 or fewer employees, this act applies only when there are fewer than 25 employees.
The act grants a small business tax credits of up to 35% (a maximum of 25% for non-profits) to offset the cost of the insurance. Credits would be greatest for firms with fewer than 10 employees and an average wage of less than $20,000 a year. In 2014, this figure increases to a maximum of 50% (35% for non-profits). Continue reading Small employer tax credits for medical insurance