IRS Provides Small Employer Health Care Credit Relief

News from RWHSG

Posted by Kim Chen on May 2nd, 2018

Eligible small employers that pay a portion of the premiums for employee health care coverage in a qualified health plan through a state insurance marketplace’s Small Business Health Options Program (SHOP) are eligible for a tax credit of up to 50% of employer-paid premiums for up to two consecutive years under IRC Sec. 45R. The IRS is providing relief for small employers that claimed a credit for all or part of the 2016 tax year, or all or part of a later tax year, but are unable to offer employees a qualified health plan through a SHOP Exchange for all or part of the remainder of the credit period because the employer’s principal business address is in a county in which no SHOP Exchange is available. Employers may calculate the credit for the subsequent portion of the credit period by treating health insurance coverage provided to employees as qualifying for the credit if that coverage would have qualified for the credit under the pre-2014 rules. Notice 2018-27, 2018-20 IRB; News Release IR 2018-108 .