Today, Congressman Sires urged New Jersey small business owners to check their mail boxes in the coming days as the IRS has started mailing out more than 4 million postcards to small businesses across the country. The postcards are intended to help small businesses realize that they may qualify for a tax credit offered through the recently passed health care reform law beginning today.
"Included in health care reform law was a huge tax break for small businesses owners," stated Congressman Sires. "It is important for small businesses across New Jersey to know it's out there and that they can start taking advantage of it immediately."
The tax credit is available to small businesses with 25 or fewer employees and an average wage of $50,000 or less that provide health insurance for their employees. Companies with 10 or fewer employees and an average wage of $25,000 or less get the maximum credit- 35% of what the employer is paying for employee insurance coverage. The maximum credit will rise to 50% in 2014.
The tax credit is also available to small non-profits. For non-profits, the tax credit is worth up to 25% of what the employer is playing for employee insurance coverage. The maximum credit for non-profits will rise to 35% in 2014.
"This credit is going to make it easier for small businesses already offering insurance to afford it , while allowing more small businesses to begin providing health care coverage for their workers," expressed Congressman Sires. "Lowering costs for small businesses in New Jersey is key in assisting our economy on the path to recovery."
For answers to the most frequently asked questions regarding the tax credit, please visit the IRS site at http://www.irs.gov/newsroom/article/0,,id=220839,00.html.