The Internal Revenue Service has published guidance to help small businesses calculate and claim the new small-business health care tax credits for the 2010 tax year.
The guidance addresses which firms qualify for the credit, provides examples of how the credit applies to employers in different scenarios, and provides links to the Form 8941 needed to calculate the credit.
The tax credit, a part of the health care reform law passed in March, is available to small businesses that (1) employ fewer that 25 full-time employees; (2) pay average annual wages below $50,000; and (3) pay at least half of the cost of health coverage for their employees. To read the IRS guidance, click here. For further details, Read More.