For tax years beginning after December 31, 2009, this tax credit is provided to eligible small employers (ESEs), who are employers with no more than 25 full-time employees (FTEs) employed during the tax year. These FTEs are defined as employees having annual full-time equivalent wages that average no more than $50,000. The full credit is only available to an employer with 10 or fewer FTEs and whose employees have annual full-time equivalent wages from the employer of less than $25,000.
Certain individuals are not treated as employees for purposes of the credit. They include:
- Sole proprietors
- 2-percent or greater S-Corporation shareholders
- 5-percent or greater C-Corporation shareholders
The maximum credit is 35 percent of premiums paid in 2010 by the ESE. The credit can be carried back one year and forward 20 years.
If you meet the above criteria and would like us to help you calculate your potential credit, give us a call at 330-253-4424 or 330-678-5203.