WHAT IS A PREMIUM TAX CREDIT OR ADVANCE PREMIUM TAX CREDIT (APTC)?
A premium tax credit is money that the federal government pays directly to your insurance company every month, so you can have lower premiums. Tax credits can also be used towards your dental insurance plan. The credit is based on the income you and the people in your tax household expect to have during the year.
HOW DO I KNOW IF MY SMALL BUSINESS IS ELIGIBLE FOR TAX CREDITS?
Your small business may be eligible for these tax credits:
50% Federal Tax Credit
Employers can get up to a 50 percent federal tax credit when they buy health insurance through the Health Connector, if they:
- Have 25 or fewer full-time employees, and
- Pay average annual wages below $50,000, and
- Pay at least half of the premiums for employee health insurance.
Wellness Track Program and Rebate
The Health Connector offers Wellness Track, a free program offered to eligible employers enrolled in a small business group health plan through the Health Connector.
- Employers who are not the sole owner and employee of a company and who have fewer than 25 employees total are eligible for the Wellness Track program.
- Eligible employers who participate may qualify for a Wellness Track rebate of up to 15 percent on their group’s health insurance premium contribution for coverage purchased through the Health Connector.