How Do You Calculate The New Small Business Health Insurance Coverage Tax Credit?
Joe Biden was right that health care reform is a big deal. With this new bill, healthcare costs are going to be a significant part of a company’s budget and can affect the company’s profitability firsthand. If you are an employer, here is how to determine if you qualify for the new Small Business Health Care Tax Credit. The new Small Business Tax Credit is available to both taxable (for profit) and tax-exempt small businesses but the amount of the credit is different. Determine if you have 25 or less Employees. This is a little confusing because you must calculate the number of employees using a formula – this number will not necessarily be the same number as people working for you. For example, an employer with less than 50 half-time workers might also be eligible. To determine the total number of employees (do not count owners or family members) and use this formula: Full-time employees who work at least 40 hours per week + Full-time equivalent of part-time employees. Add these 2 tot
