HealthPass Offers Information on Small Business Tax Credit

Date: May 25, 2022       Category: Insurance/Health        Author: Kip Kelly

New York non-profit HealthPass announced it has updated its website with information on claiming the small business health care tax credit, whose final guidelines were just released by the Internal Revenue Service.

The information posted includes a one-page form with instructions for its completion and an elaboration on the credit's eligibility requirements, which specify that small businesses with 25 or fewer full-time employees can claim the tax credit for 2012, according to a press release from the organization.

"The guidance removes some uncertainty that had surrounded the tax credit and provides much greater clarity around the requirements for small businesses to qualify for the credit," said Vince Ashton, executive director of HealthPass, a commercial health insurance exchange.

The tax credit was created under the Affordable Care Act, a series of health insurance reforms passed by Congress in March, and was constructed as a way of encouraging small businesses to provide health insurance to their employees.

The credit is equivalent to 35 percent of what it costs an employer to offer health care coverage to workers, said HealthPass' director of health policy Shawn Nowicki.

Due to current taxes and fees in place, small businesses usually pay up to 18 percent more per worker than their larger counterparts do for the same health insurance policy, according to a White House press release.