The tax credit for paying for health insurance for your employees is increasing significantly this year. The top credit rises to 50 percent for employee coverage bought from an exchange or the average group exchange premium for other small businesses in your state.
The full credit is only available to businesses with 10 or fewer full-time-equivalent employees or average wages of $25,400 or less. It is reduced rapidly for businesses with more employees or higher average pay. It phases out completely for businesses with more than 25 workers or average pay in excess of $50,800.
The employer must pay at least 50 percent of the cost of the health insurance to qualify for the credit.