Small Employer Tax Credits

The Affordable Care Act helps small businesses and small tax-exempt organizations afford the cost of covering their employees.

What This Means for You

If you have fewer than 25 employees and provide health insurance, you may qualify for a tax credit of up to 35% (up to 25% for non-profits) to offset the cost of your insurance. This credit will increase in 2014 to 50% (35% for non-profits). This will make the cost of providing insurance much lower.

Claim this tax credit for your small business at IRS.gov.

For More Information

Mark's Story: Making Insurance More Affordable for Small Businesses
Fact Sheet: Small Businesses and the Affordable Care Act.
Employer Bulletin: FAQs on Automatic Enrollment, Employer Responsibility, and Waiting Periods.
Frequently Asked Questions, updated December 3, 2010.
Learn more about health care options for small businesses.

Posted on: July 1, 2010

Last Updated: July 6, 2012