Guidelines & Clarification
In an effort to help my clients and other small businesses with less than 25 full-time employees or, 50 half-time employees or, a mix that when added together totals less than 25 full-time employees, please read on.
The following will provide everything you need to know to see if your company qualifies and then also how you can apply for these credits. The information provided comes directly from the California Association of Health Underwriters (CAHU) and the IRS website. Some of you receiving this will qualify, however, many of you will not due to the low annual salary ceiling. It may help to know however, that many of the high income earners (owners and partners) are not used in determining average annual salaries (see Q&A #13). Overall, it only takes a few minutes to go through the calculation and then view the example scenarios and the Q&A section.
CAHU
Small business Health Care Tax Credits went into effect retroactive to January 1, 2010. The IRS has several documents on their website explaining in detail what is required for small employers to qualify for and get the tax credit. As mentioned, this page contains an FAQ, a chart to help determine ER eligibility, a page of basic info also, plus more articles to help employers.
Let’s make the most of every opportunity and get the best of what is available for your company. It’s important that we plan and work together to get the regulations implemented as they come up and bless your employees with the resources that are available to us. Healthier employees make better performing companies! I am excited and looking forward to doing all I can to improve lives, aren’t you?
Thanks everyone for your business and trusting in me to always do what is in your company’s best interests. Let me know how I can help and have a great day!
