The new health reform law gives a tax credit to certain small employers that provide health care coverage to their employees, effective with tax years beginning in 2010. Over the next several weeks, Vision Payroll will be providing further information on the Small Business Health Care Tax Credit. Today’s topic is Claiming the Small Business Health Care Tax Credit Without Taxable Income for Tax-Exempt Employers.

The Small Business Health Care Tax Credit will be claimed by tax-exempt employers as a refundable credit. As such, the only limit is the previously discussed limit of federal income tax withholding and Medicare tax liability.

The next topic to be covered in this series is Impact of  the Small Business Health Care Tax Credit on Estimated Tax Payments. Contact Vision Payroll if you have further questions on Claiming the Small Business Health Care Tax Credit Without Taxable Income for Tax-Exempt Employers.