A federal tax credit for group health insurance: are you eligible?
Article Type: Brief article
Subject: Health care reform (Laws, regulations and rules)
Tax credits (Laws, regulations and rules)
Health insurance (Laws, regulations and rules)
Pub Date: 11/01/2010
Publication: Name: West Virginia Medical Journal Publisher: West Virginia State Medical Association Audience: Academic Format: Magazine/Journal Subject: Health Copyright: COPYRIGHT 2010 West Virginia State Medical Association ISSN: 0043-3284
Issue: Date: Nov-Dec, 2010 Source Volume: 106 Source Issue: 7
Topic: Event Code: 930 Government regulation; 940 Government regulation (cont); 980 Legal issues & crime Advertising Code: 94 Legal/Government Regulation Computer Subject: Government regulation
Product: Product Code: 6322000 Medical Care Insurance; 6320000 Accident & Health Insurance NAICS Code: 524114 Direct Health and Medical Insurance Carriers; 5241 Insurance Carriers SIC Code: 6321 Accident and health insurance
Geographic: Geographic Scope: United States Geographic Code: 1USA United States
Legal: Statute: Patient Protection and Affordable Care Act
Accession Number: 244271377
Full Text: The Patient Protection and Affordable Care Act of 2010 (PPACA) has many pages of requirements and regulations, but it also contains a way to help you pay for these benefits. Included in the PPACA is a tax credit of up to 35% for employers that pay for at least 50% of their employees' premiums.

The chart on page 2 shows how to determine whether your practice is eligible for a tax credit or not. It is good for years of 2010 through 2013, and potentially through 2015, if you are in the State Exchange..... but that will be another article.

If you have less than 25 employees, and the average salary (not counting the owner or the family members of the owner) is below $50,000, and you pay at least half of the employee's premium for single coverage.....you are eligible for some level of tax credit. To get the maximum 35% credit, you must have 10 or less full-time (or full-time equivalent) employees, AND the average annual salary must be below $25,000. Employers with more than 10 full-time employees and/or have an average salary of over $25,000 will have a reduced amount of tax credit available to them.

The credit is claimed on the following year's income tax form. For example, to get the tax credit for 2010, it will be filed with your forms that will be completed in 2011.

To assist you in evaluating your current group health insurance plan or to aid you in creating a plan design, call the West Virginia Medical Insurance Agency for more information.
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