Starting in 2010, up to 4 million small businesses that offer healthcare coverage to their employees may be eligible for a tax credit.
To qualify, a small business must:
- Have fewer than 25 full-time equivalent employees
- Pay average annual wages below $50,000 per FTE
- Contribute at least 50% of each employee's premium
Notes:
- Owners are excluded, and should not be counted in number of employees, wages, or premium contribution amount.
- Tax credits can't be larger than actual income tax liability.
Details about the credits, including tax tips guides and answers to frequently asked questions are now available at www.irs.gov. We have also attached a spreadsheet to assist with the calculations. |
