Posted: July 24, 2013
Maryland Comptroller Peter Franchot is sending 5,000 letters to small business owners in Howard County to alert them of a tax credit available to them as a result of the Affordable Care Act.
Franchot is working in concert with health care advocacy group Maryland Health Care for All Coalition to get the word out. The mailing is being paid for with a grant from the Horizon Foundation, a philanthropic organization that promotes the health and wellness of people living or working in Howard County. If successful, the mail initiative may expand to small businesses throughout the state.
Small businesses and nonprofits qualify for the tax credit by purchasing health insurance through Maryland Health Benefit Exchange’s virtual insurance marketplace, called Maryland Health Connection, beginning in 2014. The online exchange is being created as part of a mandate of the Affordable Care Act (ACA).
However, the credit is also available now for tax years 2010 through 2013 and is worth up to 35% of a business’ health premium costs. That amount increases to 50% in 2014. Small employers can receive the credit if they employ fewer than 25 full-time workers, pay an average wage of less than $50,000 and cover at least 50% of the employee-only premium cost.
The amount an individual business qualifies for depends on the number of full-time-equivalent employees and their average salary. Businesses with fewer than 10 employees and an average salary of less than $25,000 will get the biggest tax credit.
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