FORM 8941: CREDIT FOR SMALL EMPLOYER HEALTH INSURANCE PREMIUMS

Th Internal Revenue Service has released for the 2010 tax season form 8941 Credit for Small Employer Health Insurance Premiums along with the instructions.  In general, the credit is for small employers that pay at least half of the premiums for single health insurance coverage for their employees.  It will specifically help employers that employ moderate and lower income workers.

A business can claim the credit for 2010 through 2013 and for any two years after that.  Those employers with 10 or fewer full time equivalent (FTE) employees paying an average wage of $25,000 or less can receive the maximum credit.  The credit is phased out at 25 or more employees or average wages of more than $50,000 per year.  Remember the eligibility rules in part consider the number of FTE employees the company has, so if a business uses part-time employees it may still qualify for the credit. 

In reading the instructions and filling out the form 8941 I believe that unless the business is already creating reports that contain the needed information, the business owner will at least, in the beginning spend more the suggested 12 hours on record keeping that the instructions suggest.

You can download the form and instructions at http://www.irs.gov/newsroom/article/0,,id-231928

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