The Internal Revenue Service (IRS) Dec. 2 released a set of instructions and forms to help employers claim the small business health care tax credit contained in the Patient Protection and Affordable Care Act.
The IRS released the new
Form 8941 Credit for Small Employer Health Insurance Premiums and a revised
Form 990-T, along with
instructions for completing the Form 8941 and a
notice discussing the credit. A
step-by-step guidefor calculating the credit and a list of
frequently asked questionsare also available.
The tax credit is designed to help small businesses afford health insurance coverage for their employees. The credit is worth up to 35 percent of a business’ premium costs in 2010, and the amount increases to 50 percent of premium costs in 2014.
In order to qualify for the credit, an employer must have fewer than 25 full-time equivalent employees (FTE) for the tax year; cover at least 50 percent of its employees’ premium costs; and offer average annual wages of less than $50,000 per FTE.
Additional information about the credit may be found here:
http://www.irs.gov/newsroom/article/0,,id=223666,00.html.