Small Number of Colorado Businesses Use Health Insurance Tax Credit
Just 5 percent of Colorado small businesses are using a tax credit created as part of the Affordable Care Act, meant to encourage small businesses and nonprofits with low average wages to provide health insurance to their employees. To obtain the credit, a small business must have fewer than 25 full-time employees, pay average annual wages below $50,000 per full-time employee, and contribute at least 50% to each employee’s premium. The law provides a tax credit for up to 35% of the insurance premiums now, growing to 50% in 2014.”
According to Rhett Buttle, a spokesman for the Small Business Majority, small businesses don’t know about it. With all the political rhetoric going around about the ACA, folks weren’t focused on learning about it,” The Small Business Authority offers an online calculator for estimating whether an employer will qualify for the tax credit. Read more about the credit from Colorado Public News.