The new health reform law gives a tax credit to certain small employers that provide health care coverage to their employees, effective with tax years beginning in 2010. Over the next several weeks, Vision Payroll will be providing further information on the Small Business Health Care Tax Credit. Today’s topic is the Impact of the Twenty-five or More Employees.
Employers with twenty-five or more employees may still qualify for the credit because the credit is based on the number of full-time equivalents (FTEs), not the actual number of employees. An employer with forty-six employees who work 1,040 hours each would only have twenty-three FTEs and could still qualify for the credit.
The next topic to be covered in this series is the Impact of Seasonal Employees. Contact Vision Payroll if you have further questions on the Impact of the Twenty-five or More Employees.