Savvy business owners are always looking for ways to improve the health of both their employees and their business.
However, for some small businesses, establishing and implementing a comprehensive wellness program may not be financially feasible. But they may find help through the Indiana Small Employer Wellness Program Tax Credit, says Sally Stephens, president of Spectrum Health Systems.
“The purpose of the credit is to help more companies reap the benefits of a healthier work force,” Stephens says. “The credit allows these employers to not only allocate the necessary funds toward wellness but also to consider partnering with a wellness provider to assist them.”
Smart Business spoke with Stephens about how to determine whether your business qualifies for the credit and how it could help your company succeed.
What is the Indiana Small Employer Wellness Program Tax Credit?
The Small Employer Wellness Program Tax Credit, introduced in 2007, provides the financial incentive for small employers to implement a comprehensive wellness program. In doing so, employers can receive a state tax credit of up to 50 percent of the costs incurred by an Indiana small business for providing a qualified wellness program to employees.
The credit is funded by the cigarette tax that was introduced the same year.
How can this tax credit help small employers?
The credit allows many employers who, in the past, did not have the internal resources or could not justify the expense of providing wellness services. The credit now allows them not only to allocate the dollars but also to consider partnering with a wellness provider to assist them with this initiative.
How can an employer determine if it is eligible for the tax credit?
The criteria and application process are well defined on the state website. The tax credit is available to employers with two to 100 employees that have received certification from the Indiana State Department of Health for a ‘Qualified Wellness Program.’
To qualify, the program must offer incentives for weight loss and smoking cessation and offer preventive screenings. According to the state Department of Workforce Development, companies with 99 employees or fewer represent nearly 41 percent of all private sector employment, or more than 1 million employees.
