From Carol McAtee’s CPA firm in St. Petersburg, FL – Under the Patient Protection and Affordable Care Act, approved by Congress and signed into law on March, 23, 2010, your business may be eligible for a tax credit. In order to qualify, you must meet ALL of the following three requirements:
- You must have paid at least 50 percent of the health insurance premium cost for each enrolled employee in 2010.
- You must have had fewer than 25 full-time equivalent employees – FTE (part-time employees are counted in this requirement under a separate calculation).Do not include sole proprietors, partners, more than 2 percent S Corp shareholders or more than 5 percent shareholders in any non-S Corp or other entities not a corporation.
- You paid average annual wages for the 2010 tax year of less than $50,000 per FTE.
If you believe you qualify, Contact us for assistance in all of your financial and tax matters.
For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations.
ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.
