Small businesses with less than 25 FTE (Full-time Equivalent) employees and with average wages of less than $50K, will receive a tax credit of up to 35% of the employers’ premium contribution (25% in the case of tax-exempt eligible small employers).
The incentive will be available for premiums paid toward health coverage for employees in tax years 2010 through 2013.
In 2014 and 2015, an employer can claim a 50% tax credit if the employer participates in an insurance Exchange and if the employer pays 50% of the premium cost.
Unfortunately, there will be no tax advice hotline from the government. Small employers are advised to ask their accountants for any tax credit questions.