Small businesses will be getting relief for providing group health insurance to employees from health care reform. Now, the Internal Revenue Service has formed a draft of the tax credit form that small businesses will have to fill out to receive and calculate their credit amount.
The Insurance Journal reports that businesses are already eligible for the tax credit this year if they pay at least half the cost of individual coverage when providing employees health insurance.
Then over the next three years, small businesses could receive credits up to 35 percent of premiums that employers pay. In 2014, small businesses could receive up to 50 percent of premiums paid by employers.
Non-profit and tax-exempt small businesses will have a different form to fill out and will only be eligible for 25 percent tax credit until 2014. Then non-profits will be eligible for 35 percent tax credits.
Health care reform geared the tax credits for small businesses that employ lower-income individuals. Businesses that have more than 25 employees or that pay more than $50,000 a year on average to employees will not be eligible.
Many experts are still unsure how many small businesses will take advantage of the tax credits but many businesses and employees can benefit from the reform provision.