How does an employer qualify and apply for tax credits if they provide health insurance coverage for their employees?

To qualify for tax credits an employer must: have 25 employees or fewer have average firm wages of $50,000/year or less provide health insurance coverage for employees (the employer must contribute a minimum …

To qualify for tax credits an employer must:

  • have 25 employees or fewer
  • have average firm wages of $50,000/year or less
  • provide health insurance coverage for employees (the employer must contribute a minimum of 50% of the cost of their employees’ coverage)
  • file the appropriate tax returns (Form 8941; Line 44f of Form 990-T for exempt organizations) with their tax preparer

Tax credits are available now. Businesses may apply for the previous years’ credits for which they qualify.