Tax & Business Services

John F Howes CPA




April 19th, 2010 at 12:25 pm

2010 Health Care Tax Credits For Small Businesses and Non-profits

in: Business Taxes

Health Care Postcard Notice

From the IRS:

The maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. The maximum credit goes to smaller employers –– those with 10 or fewer full-time equivalent (FTE) employees –– paying annual average wages of $25,000 or less. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals. The credit is completely phased out for employers that have 25 FTEs or more or that pay average wages of $50,000 per year or more.

Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt organizations, the IRS will provide further information on how to claim the credit.

Note for owners and 2% or more S corporations shareholders:  The credits will apply to your employees but will not apply to wages paid to you.

3 Simple Steps

Related articles by Zemanta
  • Share/Bookmark
Print This Post Print This Post -


  • Click here to discuss this article in the CPAJohn Forum.
    • 104

     

    RSS feed for comments on this post | TrackBack URI

    Get Adobe Flash playerPlugin by wpburn.com wordpress themes