IRS Reminds Small Employers about Health Care Tax Credit

March 13, 2012 (PLANSPONSOR.com) - The Internal Revenue Service (IRS) is encouraging small employers that provide health insurance coverage to their employees to check out the small business health care tax credit and claim it if they qualify.

The recently-revamped Small Business Health Care Tax Credit page on IRS.gov has information and resources designed to help small employers see if they qualify for the credit and calculate it correctly. These include a step-by-step guide for determining eligibility, examples of typical tax savings under various scenarios, answers to frequently-asked questions, a YouTube video and a webinar.  

Small employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for this credit. The credit is specifically targeted to help small businesses and tax-exempt organizations provide health insurance for their employees.  

Some businesses and tax-exempt organizations that already locked into health insurance plan structures and contributions may not have had the opportunity to make any needed adjustments to qualify for the credit for 2010 or 2011. The IRS says these employers can still make the necessary changes to their health insurance plans so they qualify to claim the credit on their 2012 returns or in the future. Eligible small employers can claim the credit for 2010 through 2013 and for two additional years beginning in 2014.  

Additional information about eligibility requirements and figuring the credit can be found at http://www.irs.gov/newsroom/article/0,,id=223666,00.html.

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