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Healthcare Reform: Average GA Premiums Announced for Small Employer Tax Credit
5/27/2010
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The new federal health reform law allows for a federal income tax credit to eligible small employers that pay a certain amount toward their employees’ health insurance premiums.
For taxable years beginning before 2014, the amount of the credit is based on a percentage of the lesser of:
- the amount of nonelective contributions paid by the eligible small employer on behalf of employees under the arrangement during the taxable year (amount should be at least 50% of the employee’s premium), and
- the amount of nonelective contributions the employer would have paid under the arrangement if each such employee were enrolled in a plan that had a premium equal to the average premium for the small group market in the State. Recently, The Secretary of Health and Human Services (HHS) announced it’s determination for the average premium for each state for the 2010 taxable year. Georgia’s is as follows: $4,612 for employee only coverage and $10,598 for family coverage. For more information about the small employer tax credit, visit the IRS website at www.irs.gov.
Not sure if you qualify for the healthcare reform small business tax credit? Visit the IRS worksheet: "Three Simple Steps to Qualify for The Tax Credit":
http://www.irs.gov/pub/irs-utl/3_simple_steps.pdf
Answers to questions about the healthcare reform small business tax credit can be found here:
http://www.irs.gov/newsroom/article/0,,id=220839,00.html
