You may have heard that the Affordable Care Act provides tax credits for small businesses, but did you know those tax credits could also be granted to nonprofit organizations?
A nonprofit can qualify for a tax credit to cover a portion of their health insurance costs if it meets the following criteria:
- It employs fewer than 25 full-time equivalent (FTE) employees
- The average annual wage of those employees is less than $50,000 per FTE
- The organization pays at least 50% of each employee's insurance premium
If you meet these criteria, you can qualify for a tax credit of up to 25% of your premium expenses for 2010-2013, and up to 35% of premium expenses beginning in 2014. Apply for the credit simply by filling out Form 8941 on your income taxes and including the amount on line 44f on the Form 990-T, both of which are available at www.irs.gov. More information about who qualifies and how to get the tax credit is available at our website at www.smallbusinessmajority.org.
Thanks to the Affordable Care Act you can now get some money back just for offering your deserving employees health insurance, and put those extra dollars to good use serving your organization's mission. For more information about the Affordable Care Act, visit www.healthcare.gov.
Jessica Stone manages healthcare outreach to the states out of Small Business Majority's Washington, DC office, where she builds strong relationships with businesses and other organizations across the country.