Changes Coming to the Small Business Health Care Tax Credit in 2014

There are some major changes coming to the Small Business Health Care Tax Credit starting next year. A change to the maximum amount of the credit will definitely benefit small business, but there are a couple other changes that may make it difficult to claim the credit. The credit amount will increase to 50% for small business and 35% for tax-exempt business. In order to claim the credit starting in 2014, businesses must offer a health plan that has been procured through the SHOP Exchange.  The SHOP Exchange is the government’s Small Business Health Options Program. The IRS has been very direct explaining that “the credit is available only if you get coverage through the SHOP Marketplace.  Also changing in 2014, businesses are only able to claim the credit for two-consecutive taxable years.  The phase-out calculations will remain in effect with some cost-of-living adjustments to the average annual wage amounts.  Additional information about the Small Business Health Care Tax Credit can be found at the IRS website, or you can contact StaffScapes to discuss further.