The Internal
Revenue Service today issued new guidance to make it easier for small
businesses to determine whether they are eligible for the new health care tax
credit under the Affordable Care Act and how large a credit they will receive.
The guidance makes clear that small businesses receiving state health care tax
credits may still qualify for the full federal tax credit. Additionally, the
guidance allows small businesses to receive the credit not only for regular
health insurance but also for add-on dental and vision coverage.
Notice 2010-44 provides
detailed guidelines, illustrated by more than a dozen examples, to help small
employers determine whether they qualify for the credit and estimate the amount
of the credit. In typical IRS fashion, the calculation of this credit becomes complicated very quickly. It is really targeted to small employers with less than 25 employees and with an average payroll of 25K/year. The credit goes down as the number of employees goes up and /or the average wage goes up.
We will be happy to run the numbers for you mid year to see what impact this credit may have for your business.
