--- title: Deadline Approaching to Claim Small Business Health Care Tax Credit description: Cut-off date soon for small businesses to claim health care tax credit. --- [![logo-new-2](https://promotion-payroll-hr.pinnaclehro.com/hs-fs/file-420784457-png/images/logo-new-2.png)](http://www.pinnaclehro.com?hsLang=en-us) - [Paycheck Login](https://www.paycheckrecords.com/default.jsp) - [HR Login](http://www.thinkhr.com/hrhotline/login.php) - [Payroll Login](https://iop.intuit.com)  |  1-888-353-2976 - [Payroll](https://promotion-payroll-hr.pinnaclehro.com/employee-payroll-services-california?hsLang=en-us) - [Small Business Payroll Services](https://promotion-payroll-hr.pinnaclehro.com/payroll-services/small-business-payroll-processing-services?hsLang=en-us)![](https://promotion-payroll-hr.pinnaclehro.com/hs-fs/file-2100883184-jpg/images/payroll-small.jpg) - [Mid Size Business Payroll Services ](https://promotion-payroll-hr.pinnaclehro.com/payroll-services/mid-size-business-payroll-processing-services?hsLang=en-us)![](https://promotion-payroll-hr.pinnaclehro.com/hs-fs/file-2100883179-jpg/images/payroll-mid.jpg) - 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[Tweet](https://twitter.com/share) As the March 15 corporate tax filing deadline approaches, the California Chamber of Commerce is reminding small businesses to take advantage of the small business health care tax credit. The tax credit is part of the federal 2010 Affordable Care Act. The credit is worth up to 35 percent of a small business's premium costs (25 percent for tax-exempt employers). In 2014, this rate increases to 50 percent (35 percent for tax-exempt employers). California small businesses can review the Internal Revenue Service (IRS) guidelines to determine eligibility for the tax credit on the new business-oriented website,[www.healthlawguideforbusiness.org](http://www.healthlawguideforbusiness.org/). The website offers a “[tax credit calculator](http://www.healthlawguideforbusiness.org/benefits-available-your-business/tax-credit-calculator)” that helps employers estimate savings available under the law. **Qualifying for the Credit **To qualify, an employer must have fewer than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible). A qualifying employer also must pay average annual wages below $50,000. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers. To determine if they qualify, businesses may use this [three-step fact sheet](http://www.irs.gov/pub/irs-utl/3_simple_steps.pdf) from the IRS. Eligible small employers will use Form 8941 to calculate the credit. **About the Credit** The small business health care tax credit helps small businesses and small tax-exempt organizations afford the cost of covering their employees. According to the IRS, small employers that pay at least half of the premium for employee health insurance coverage may be eligible for the small business health care tax credit. Small tax-exempt organizations also may qualify. The IRS sent millions of postcards to small employers to let them know about the new small business health care tax credit and encourage them to check their eligibility. Even a business that didn't receive a postcard still may be eligible. Additional information about eligibility requirements and calculating the credit can be found on the [Small Business Health Care Tax Credit for Small Employers page](http://www.irs.gov/newsroom/article/0,,id=223666,00.html) of IRS.gov.   Author: *****CalChamber/HR Watchdog* *HR Watchdog, HRCalifornia’s Employment Law Blog, © California Chamber of Commerce* Tags: [tax credit](https://promotion-payroll-hr.pinnaclehro.com/human-resources-articles/topic/tax-credit), [health insurance](https://promotion-payroll-hr.pinnaclehro.com/human-resources-articles/topic/health-insurance), [Small business](https://promotion-payroll-hr.pinnaclehro.com/human-resources-articles/topic/small-business), [small business heath care tax credit](https://promotion-payroll-hr.pinnaclehro.com/human-resources-articles/topic/small-business-heath-care-tax-credit), [small employers](https://promotion-payroll-hr.pinnaclehro.com/human-resources-articles/topic/small-employers), [Employers](https://promotion-payroll-hr.pinnaclehro.com/human-resources-articles/topic/employers), [health care reform](https://promotion-payroll-hr.pinnaclehro.com/human-resources-articles/topic/health-care-reform) ### Stay updated with the hottest and latest employment law and HR trends and topics ### Most Popular Blog Posts Areas We Serve - 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