The IRS has issued proposed regulations REG-113792-13, which provide guidance on the tax credit available to certain small employers that offer health insurance coverage to their employees. These proposed regulations define an eligible small employer as an employer that has no more than 25 full-time employees (FTE) for the taxable year, whose employees have average annual wages of less than $50,000 per FTE (as adjusted for inflation for years after December 31, 2013), and has a qualifying arrangement in effect that requires the employer to pay a uniform percentage (not less than 50 percent) of the premium cost of a qualified health plan offered by the employer to its employees through a Small Business Health Options Program (SHOP) Exchange. This means, if you, or someone you know, is a small business AND health insurance is offered for employees of this small business, the business MUST BUY through the ACA (Obama Care) created SHOP exchange, not from their current insurance provider, to qualify for the credit. Additionally, if that small business employs family members, as most do, the family member health insurance DOES NOT qualify for the available credit.
Posted on: Fri, 30 Aug 2013 13:23:13 +0000
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