Legislative Week In Review

IRS PROVIDES GUIDANCE ON SMALL EMPLOYER
TAX CREDITS UNDER FEDERAL HEALTH CARE REFORM

In the past week the IRS has developed information and guidance concerning the newly enacted small employer tax credit included in the Federal health care reform legislation. The stated purpose of the tax credit is to encourage small employers to offer health insurance or maintain existing coverage they already provide. The credit is generally available to employers that have fewer than 25 full-time equivalent employees (FTEs) with annual wages averaging less than $50,000 per employee. From 2010 through 2013, the maximum credit is 35% of premiums paid for for-profit companies and 25% of premiums paid for tax-exempt organizations. In 2014, the maximum credit increases to 50% for for-profit companies and 35% for tax-exempt organizations. The maximum credit will go to employers with 10 or fewer FTEs paying annual average wages of $25,000 or less. For more information concerning the tax credit

click here to go to the IRS web page that explains the tax credit in more detail.

	*Representing Ohio’s Leading Health Insurance Agents*

IRS PROVIDES GUIDANCE ON SMALL EMPLOYER TAX CREDITS UNDER FEDERAL HEALTH CARE REFORM In the past week the IRS has developed information and guidance concerning the newly enacted small employer tax credit included in the Federal health care reform legislation. The stated purpose of the tax credit is to encourage small employers to offer health insurance or maintain existing coverage they already provide. The credit is generally available to employers that have fewer than 25 full-time equivalent employees (FTEs) with annual wages averaging less than $50,000 per employee. From 2010 through 2013, the maximum credit is 35% of premiums paid for for-profit companies and 25% of premiums paid for tax-exempt organizations. In 2014, the maximum credit increases to 50% for for-profit companies and 35% for tax-exempt organizations. The maximum credit will go to employers with 10 or fewer FTEs paying annual average wages of $25,000 or less. For more information concerning the tax credit click here to go to the IRS web page that explains the tax credit in more detail.
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