Small-employer health insurance credit

The recently enacted Health Care Bill included a new tax credit for small business owners who provide and pay for at least 50% of the insurance premiums of their employees' qualifying health plans. In 2010 the credit is a maximum of 35% of the cost of the employer-paid premiums.

In order to qualify for the credit, an employer can have no more than 25 full time equivalent employees (FTE) and the average wages per FTE must be less than $50,000. To qualify for the maximum credit, the employer can have no more than 10 FTE and average wages must be less than $25,000.

As usual the Congress and the IRS has not made things simple. If you need assistance determining if your business may qualify for the credit, please contact Brandon or Bruce.

Below is a link to a more detailed explanation of the credit.

Small-Employer Health Insurance Credit.pdf