FollowThe IRS recently made a number of clarifications regarding the credits for small businesses in the recent federal health reform legislation. This particular tax credit, tax code Section 45R, is designed to encourage small businesses to provide health care plans to their employees, especially if they haven’t already been doing so.
Among the clarifications were that this credit applies to both taxable and tax-exempt employers, that the credit will not be reduced if the employer receives a state health care subsidy, how do deal with add-on insurance, and employee hours calculation as well as transition issues.
These clarifications come just days after seven more states, some individuals, and the National Federation of Independent Businesses joined the constitutional challenge to the health care act.
If you have any questions about this or other tax credits please contact Kevin Thompson CPA.
The IRS recently made a number of clarifications regarding the credits for small businesses in the recent federal health reform legislation. This particular tax credit, tax code Section 45R, is designed to encourage small businesses to provide health care plans to their employees, especially if they haven’t already been doing so.
Among the clarifications were that this credit applies to both taxable and tax-exempt employers, that the credit will not be reduced if the employer receives a state health care subsidy, how do deal with add-on insurance, and employee hours calculation as well as transition issues.
These clarifications come just days after seven more states, some individuals, and the National Federation of Independent Businesses joined the constitutional challenge to the health care act.
For more details on the clarifications and the requirements for this credit see:
http://www.bnasoftware.com/News_Articles/News/IRS_Issues_Guidance_on_Eligibility_for_Small_Firm_Health_Care_Credit.asp
If you have any questions about this or other tax credits please contact Kevin Thompson CPA.
