Broker Broadcast
UnitedHealthcare - IRS Small Business Tax Credit
The Internal Revenue Service has come to the aid of small businesses and small tax-exempt
organizations with the new Small Business Health Care Tax Credit. This new program
makes it easier for eligible groups to cover the cost of their employees’ health care
benefits. It also encourages clients to upgrade to richer benefit plans and to explore
special benefit options within their portfolio.
Eligibility Rules
For-profit and tax-exempt employers may qualify. All of the following criteria must be
met in order for a group to take advantage of the program:
- The employer must cover at least 50% of health care coverage costs for workers based
on the employee-only (single) rate.
- The employer must have no more than the equivalent of 25 full-time workers (not
counting owners or family members).
- Employees’ average annual wages (not counting owners or family members) must be
below $50,000.
Credit Amount
- The maximum credit is worth up to 35 percent of a company’s premium costs in 2010
(25 percent for tax-exempt employers). Please note that the rate will increase to 50
percent on Jan. 1, 2014 (35 percent for tax-exempt employers).
- The credit gradually phases out for employers with average wages between $25,000 and
$50,000 and for employers with the equivalent of between 10 and 25 full-time workers.
Employer Notification/Support Materials
UnitedHealthcare will inform existing customers about the tax credit program before,
during and after the renewal process. For more information, visit
www.irs.gov or contact
your UnitedHealthcare representative.
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