The IRS has released final guidance for small employers eligible to claim the new health care tax credit for the 2010 tax year. These tax cuts, for both private and non-profit employers, were created by the Affordable Care Act.
In general, the credit is available to small employers that pay at least half of the premiums for single health insurance coverage for their employees.The maximum credit goes to smaller employers ---- those with 10 or fewer full-time equivalent employees ---- paying annual average wages of $25,000 or less. The credit is completely phased out for employers that have 25 or more employees or that pay average wages of $50,000 or more per year.
More information about the credit, including a step-by-step guide to claiming the credit and answers to frequently asked questions, is available on the Affordable Care Act page on IRS.gov.