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Health Insurance Credit May Benefit Many Churches

Rules and regulations for the new tax credit.

Health Insurance Credit May Benefit Many Churches

Many small businesses and tax-exempt organizations that provide health insurance coverage to their employees qualify for a special tax credit authorized by the Affordable Care Act ("Obamacare"). The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees.

The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ low and moderate income workers. It is generally available to employers that have fewer than 25 full-time equivalent (FTE) employees paying wages averaging less than $50,000 per employee per year. Because the eligibility formula is based in part on the number of FTEs, not the number of employees, many small employers will ...

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Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

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Posted:
  • October 16, 2013

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