July 10, 2010
Transition Relief for Employers That Do Not Pay at Least Fifty Percent of the Premium
Filed under: News
Vision Payroll

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 past several weeks, Vision Payroll has provided information on the Small Business Health Care Tax Credit. Today’s topic is Transition Relief for Employers That Do Not Pay at Least Fifty Percent of the Premium.

The Internal Revenue Service (IRS) expects to issue transition relief that will allow employers that otherwise qualify to claim the credit even if those employers do not pay at least 50% of the premium cost for all employees. Employers are required to pay at least 50% of the cost for single coverage. For employees with more expensive coverage, such as family coverage, employers that otherwise qualify to claim the credit will qualify as long as they pay at least 50% of the premium cost for single coverage toward the more expensive coverage. Therefore, employers might still qualify even if they pay less than 50% of the cost of the more expensive coverage.

This concludes this series on the Small Business Health Care Tax Credit. Contact Vision Payroll if you have further questions on Transition Relief for Employers That Do Not Pay at Least Fifty Percent of the Premium or the Small Business Health Care Tax Credit.

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