Latest News
- Bay Area Employers: Shelter in Place Order Extended
(posted: Apr, 2020)SIP extended through May 31st. The SF Bay Area will continue to shelter in place through the end of May, even as other parts of the U.S. begin to reopen.
Latest Blog
- Bay Area Counties Issue New Order, SIP thru May
(posted: Apr, 2020)
The 6 counties are extending SIP through the end of May, but are also easing restrictions in a few key areas like construction.
Understanding the Small Business Health Care Tax Credit
posted: January 31st, 2017
The Small Business Health Care Tax Credit is designed to encourage small businesses and small tax-exempt employers to offer health insurance coverage to their employees. In general, an employer may be eligible for the credit for tax year 2016 if it:
- Had fewer than 25 full-time equivalent employees
- Paid an average wage of less than $52,000 a year
- Paid at least half of employee health insurance premiums
- Paid premiums on behalf of employees enrolled in a qualified health plan offered through the Small Business Health Options Program (SHOP) Marketplace or Covered California
Key Facts
Employers seeking to claim the credit should know the following key facts:
- The maximum credit is 50% of premiums paid for small business employers and 35% of premiums paid for small tax-exempt employers.
- Small employers may claim the credit for no more than two consecutive taxable years, beginning in tax year 2014.
- Eligible small employers (other than those that are tax-exempt) may claim the credit on their annual income tax returns, with an attached Form 8941, Credit for Small Employer Health Insurance Premiums, showing the calculation of the credit.
