Small Business Tax Credit

Health reform requires the federal government to offer tax credits to eligible small businesses that offer health coverage.

The first phase of this provision provides a credit worth up to 35 percent of the employer's contribution to the employees' healthcare coverage, including contributions for medical, dental, and vision. And on January 1, 2014, the rate increases to 50 percent. Your business must apply for the credit in order to be eligible, so make sure you contact your accountant or tax advisor for details, since we do not offer tax advice.

Visit the IRS website for more information and talk to your accountant to see if you’re eligible.

Health Reform and W-2 Reporting

The health reform W-2 mandate requires that employers report to their employees the dollar value of their health coverage under employer-sponsored health plans. The Treasury Department and IRS decided to make this reporting optional for all employers in 2011. Further, for smaller employers filing fewer than 250 W-2 forms, the reporting requirement is optional for 2012, and will continue to be so until further guidance is issued.

Learn more about this mandate, download forms and access a variety of resources.