By: Tommy Eden, Attorney
The Internal Revenue Service released on Dec. 2 forms on a new health care tax credit for small employers for the 2010 tax year. Created by the federal Patient Protection and Affordable Care Act, the health care tax credit is generally available if employers have 25 or fewer full-time equivalent employees, their employees' average annual compensation is less than $50,000, and the employers pay at least 50 percent of health care premium costs. See IRS Announcement below:
IRS Helps Small Employers Claim New Health Care Tax Credit; Forms and Additional Guidance Now Available on Small Business Health Care Tax Credit
IR-2010-117, Dec. 2, 2010
WASHINGTON — The Internal Revenue Service today released final guidance for small employers eligible to claim the new small business health care tax credit for the 2010 tax year. Today’s release includes a one-page form and instructions small employers will use to claim the credit for the 2010 tax year.
Tommy Eden is a Lee County native, an attorney with the local office of Constangy, Brooks & Smith, LLP and a member of the ABA Section of Labor and Employment Law and serves on the Board of Directors for the East Alabama SHRM Chapter. He can be contacted at firstname.lastname@example.org or 334-246-2901. Blog at www.alabamaatwork.com