MA Small Employer Wellness Program Tax Credit

June 19, 2013

small business wellness programIn late 2012, Wellable was excited to hear that the Massachusetts legislature enacted legislation providing that employers that initiate a wellness programs for their employees will be eligible for an annual wellness tax credit of up to $10,000.   The credit is in the amount of up to 25% of the cost of implementing an employee wellness program.  Costs in the initial year that exceed that figure may be carried over into subsequent years for credit against future tax liabilities.  The legislature has placed a $15 million per year limit on the total amount of wellness tax credits that may be issued.

What criteria must employers satisfy in order to be certified?

  • Less than 200 employees, the majority of whom work in Massachusetts
  • Offer healthcare benefits to employees
  • Must be in compliance with all legal obligations of employers

What must a wellness program include to be certified?

  • Annual budget for wellness expenditures
  • Designated wellness champion
  • Formal communication about wellness program to all employees
  • Employee awareness of their personal health risks
  • Collected data or information on employee interests on various topics
  • Identification of the most important health issues and/or interests of employees
  • Program development based on most important health issues and/or interests of employees
  • Minimum 1/3 participation of employees in at least one element of the wellness program

In order to promote workplace wellness programs among the smallest employers, 50% of the 2013 allocation will be reserved for small employers with 100 or fewer employees.

For more information on the tax credit program or how Wellable can help you gain certification, feel free to contact us.  We are proudly located in Boston and would love to grab coffee!

Topics: Regulatory

Recent Posts