Credit for Small Employer Health Insurance Premium
Hot off the presses, a new tax form for your viewing enjoyment. (We can hear the ooohs and ahhhs now). Form 8941 has just been released by the IRS which gives small businesses a tax credit for paying the health insurance of eligible employees (http://www.irs.gov/pub/irs-pdf/f8941.pdf). In a nutshell, if you pay your employees an average of $25,000 or less and pay for their health care, you will be able to claim a credit of 35% of the health care costs paid on their behalf (subject to some criteria of course). If you paid your employees on average over $25,000 but under $50,000, you are still eligible for a credit, but it will be phased out. For employers with average payroll over $50,000, unfortunately you are not entitled to this credit. There are additional rules to consider so give us a call and we can help you with this and other credits for which you or your business might be entitled.