Providing health insurance to your employees supports their wellbeing and carries tax implications that can benefit your business. Health insurance for employees is a tax-deductible business expense, and small businesses may qualify for tax credits under the Affordable Care Act (ACA).
Main Points to Understand
- Health insurance premiums are considered a business expense, hence they are tax-deductible.
- Most health insurance, including medical, dental, and vision, could be considered business expenses.
- Premiums and other medical expenses can only be deducted if they exceed 7.5% of your Adjusted Gross Income.
- Tax credit programs for small businesses are available through the Small Business Healthcare Tax Credit and American Rescue Plan.
Blanche Palasi is a 2024 PharmD. Candidate currently attending St. John's University. A Queens native, she is passionate about helping patients identify and navigate social determinants of health.