Don’t Forget The Small Employer Health Care Credit
We tend to talk more about the tax costs of Obama Care and forget about some of the tax savings that are available. One of those savings is for employers that cover part or all of their health insurance premium costs.
This credit is allowed in full assuming less than 11 employees and average wages of $25,000. It is fully phased out if you employ more than 25 employees or the average wage is greater than $50,000. A 35% credit is available during years 2010-13. For 2014-15, the credit can be up to 50%.
Many employers have not taken advantage of this credit since there is some paperwork involved. However, if you pay a substantial amount of your employee’s health insurance premiums and you meet both two tests, it is worth the paperwork. However, if your average wage exceeds about $45,000, it may not be worth all of the paperwork involved.
Paul Neiffer, CPA
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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