This week, the Treasury Department released new guidance and forms for claiming 2010 tax credits to help small businesses provide health coverage for their employees. The new guidance and forms are available by clicking here.

The guidance clarifies the types of employers and contribution arrangements that will qualify for tax credits as well as methods of determining a business’s number of employees. Generally, small employers (fewer than 25 full-time employees or equivalent, including part-time employee hours) paying an average wage below $50,000 could be eligible for tax credits to offset up to 35% of employee health insurance premiums paid in 2010.
 
To qualify, an employer must pay an amount equal to at least 50% of the insurance premiums for employees at the single (employee-only) coverage rate. These tax credits will remain in effect through 2013 and will increase in 2014, when the maximum credit will be 50% of employer contributions to employee health coverage. Please call Marcia Salkin at NAR at (202) 383-1092 if you have any questions.