Law & Order

IRS Issues Final Guidance on Small Business Health Care Tax Credit

Companies that purchase health care insurance and have less than 25 employees may be able to claim a tax credit beginning with the 2010 tax year. The credit varies according to size and average wages. The maximum credit is 35% of premiums paid by businesses with 10 or fewer full-time employees paying average annual wages of $25,000 or less.

Eligible small businesses may claim the credit for 2010 through 2013 and for any two years following. The employer must pay at least half of the premiums for single health insurance coverage of their employees. The Internal Revenue Service released final guidance on how to claim the tax credit. Click here for more information and to access the necessary forms to apply for the Credit for Small Employer Health Insurance Premiums. For questions, contact Dan Sadowski at