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Are You Claiming The Small Employer Health Insurance Credit?

December 30, 2010

Employers with fewer than 25 full-time equivalent employees that pay average annual wages below $50,000 may be eligible to claim this new credit. As a business owner I am always excited to find new credits given to small businesses as it  can be difficult to keep a business going in this current economy. This credit is called the Small Employer Insurance Credit. Some of you may right away say that you don’t have a benefit package at your work so this is useless; but those of you that do offer health insurance, this can help. Here are the details:

  • The employer must employ no more than 25 Full-time Equivalent (FTE) employees during its tax year.
  • The employer must pay annual FTE wages that average no more than $50,000.
  • The employer must have a health insurance plan and pay at least 50% of the premiums.
  • For tax years 2010-2013 the maximum credit equals 35% of contributions made.

Those are the basics for the credit and while using the IRS Tax Form 8941 you can see the needed computation. Certainly we can help you with this and all your tax needs. Give us a call at 212-979-6830 or stop for a visit as Gunwel Tax & Bookkeeping ( is ready for you. See you soon!

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