Small Business Majority

Solving Small Businesses' Biggest Problems

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Starting in 2010, up to 4 million small businesses that offer healthcare coverage to their employees may be eligible for a tax credit. Fill in the amounts below to find out what your tax credit will be.

To qualify, a small business must:

• Have fewer than 25 full-time equivalent employees
• Pay average annual wages below $50,000 per FTE
• Contribute at least 50% of each employee's premium

Notes:

Owners are excluded, and should not be counted in number of employees, wages, or premium contribution amount.

Tax credits can't be larger than actual income tax liability.

For detailed information about how the tax credit works and other issues related to the new law and small businesses, see this list of frequently asked questions. We'll be adding to this document regularly.

Number of full-time equivalent employees: Add up total number of hours worked by all employees during the year (with a maximum of 2080 hours per employee), then divide total by 2080, and round to next lowest whole number.
Total annual wages paid for all employees:Add up all the amounts in Box 1 (wages) of every employee's W-2 form.	$
Total annual employer premium contribution:Add up the premium contribution the business pays for each employee. This must be at least 50% of the total premium cost for every worker.	$
Are you a tax-exempt/nonprofit employer?		Yes No
Your estimated annual tax credit: 2010-2013
2014+

Note: This does not constitute tax advice. Contact your tax professional for information regarding your refund or tax liability.
This is a preliminary estimate, and is contingent upon accurate inputs for FTEs, average wages, and employer premium contribution as defined by the provisions of the healthcare legislation. Go to the IRS website for more information.

Embed Small Business Majority's tax credit calculator on your website.