Paychex Insurance Agency, a unit of payroll and benefits outsourcing concern Paychex, is offering a free, online calculator to help its small-business clients that provide health insurance to their employees to see if they qualify for the Small Business Tax Credit under the provisions of the Affordable Care Act.
The Small Business Tax Credit Estimator is available on PaychexInsurance.com, and calculates the estimated credit based on employees' hours, wages, premiums, and employer contributions. In addition, Paychex Insurance Agency is offering a Small Business Tax Credit Package to provide business owners with the resources to assess their eligibility and file for the credits.
In order to receive the package for the 2012 calendar tax year, business owners have to be a Paychex payroll and Paychex Insurance Agency client for the entire 2012 calendar year. The package includes a "Health Care Premium and Wage Report," which for each employee reports total annual employee payroll hours, wages, and total insurance premium contributions, along with the employer's contributions.
In order to qualify for the credit, employers must have fewer than 25 full-time equivalent employees for the tax year, average annual wages of less than $50,000 per FTE, and contribute at least 50 percent of the single premium cost for each enrolled employee. The tax credit is available to employers who provide to their employees regular health insurance, and/or add-on dental or vision coverage.
