The Affordable Care Act creates a Federal income tax credit for eligible small businesses that make contributions toward its employeesâ€™ health insurance premiums, provided that certain conditions are met.Â
This new credit helps small businesses and small tax-exempt organizations afford the cost of covering their employees and is specifically targeted for those with low- and moderate-income workers. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees.
To see if you qualify for this credit, click on the Calculate Savings tab and answer a few questions about your business and health care coverage costs.