The Small Business Health Care Tax Credit, part of the Affordable Care Act (ACA), offers significant savings for New York small businesses providing health insurance, aligning with Super Senior Services’ mission to deliver affordable, high-quality coverage. This credit supports employers covering Medicare-eligible employees (seniors and disabled) and others, reinforcing our commitment to excellence.
Eligibility Criteria: To qualify, your business must have fewer than 25 full-time equivalent (FTE) employees, pay average annual wages below $56,000 (adjusted for inflation in 2025), and contribute at least 50% of employee-only premium costs for a qualified health plan. Plans purchased through the NYSOH Small Business Health Options Program (SHOP) Marketplace automatically qualify, but direct purchases from insurers may also, if they meet ACA standards. Super Senior Services ensures your group plan, including Medicare Advantage options for eligible employees, meets these requirements.
Credit Details: The credit covers up to 50% of premiums paid for for-profit businesses and 35% for tax-exempt organizations. The amount scales based on size and wages: smaller businesses with lower wages receive larger credits. For example, a business with 10 FTEs paying $50,000 in premiums and $30,000 average wages might claim a $20,000 credit over two years. You calculate the credit using IRS Form 8941 and include it in your general business credit or Form 990-T for tax-exempt entities. Unused credits can be carried back or forward, and tax-exempt employers may receive refunds.
Calculating FTEs: One FTE equals 2,080 hours annually, distinct from ACA’s 30-hour-week standard. Part-time employees are combined (e.g., two 20-hour workers equal one FTE). Seasonal workers (120 or fewer days per year) are excluded from FTE and wage calculations but included in premium contributions. Super Senior Services helps you accurately calculate FTEs and wages, ensuring compliance and maximizing your credit.
Why Choose Us?: We specialize in tailoring group plans for small businesses, particularly those with Medicare-eligible employees. Our annual benefit reviews verify eligibility for the tax credit, analyze premium contributions, and recommend NYSOH SHOP plans to secure the maximum benefit. For businesses employing seniors or disabled workers, we integrate Medicare-focused coverage, ensuring compliance with ACA and IRS rules. Our expertise simplifies Form 8941 filing and coordinates with your accountant for seamless tax reporting.
The Small Business Health Care Tax Credit reduces the cost of providing robust coverage, making it easier to attract and retain talent. Super Senior Services’ personalized guidance ensures you leverage this credit while offering affordable, comprehensive plans, including hospital, medical, and prescription benefits. Contact us to assess your eligibility and start saving on group health insurance today, delivering peace of mind for you and your employees.