News & Updates

Small Business Tax Credit Guide
Beginning in 2010, the government is offering small employers a new small business tax credit, worth up to 35 percent of health insurance premium contributions (25 percent if the small employer is tax-exempt) to help them offset the costs of maintaining health insurance for their employees.

Who May Qualify
A small business may qualify for this credit if it meets the following requirements:

• Pays at least 50 percent of their employees' health insurance premiums.
• Employs fewer than 25 full-time equivalent employees.
• Pays average annual wages below $50,000.

How to Determine Eligibility
The Internal Revenue Service (IRS) has provided three simple steps to follow in determining a company's eligibility. Download the IRS fact sheet to learn more.

How To Claim A Credit
Both small businesses and tax-exempt organizations can use Form 8941 to calculate the small business tax credit. To obtain instructions to Form 8941 or for more information please read the IRS news release.

Additional Resources

• Small Employer Tax Credits FAQs
• Small Employer Tax Credits Provision
• IRS Small Business Tax Credits Web Page

If you have further questions, please contact your account executive.