Small Business Health Care Tax Credit Calculator
A Number of Full Time Equivalent (FTE) Employees
B Number of Employees Participating in the Plan
C Annual employer premium contribution per participating employee (employer must contribute at least 50% of total insurance premium to qualify for credit).
D Average ANNUAL wage per employee
 
E Total employer premium contribution ( = B x C ) $30000
F Tax credit as % of premium contribution (as D increases, this credit percentage decreases) 7.93%
G  TOTAL TAX CREDIT ( = E x F ) $2380
H TAX CREDIT PER PARTICPATING EMPLOYEE ( = G / B ) $238
 
SPECIAL INSTRUCTIONS

To determine the TOTAL NUMBER OF FTE EMPLOYEES, do not count owners or family members, and use this formula:

Full-time employees who work at least 40 hours per week + Full-time equivalent of part-time employees (Example: Two 20 hour per week employees = 1 FTE).

Add these 2 totals together to get your TOTAL FTE EMPLOYEES.
To determine AVERAGE ANNUAL WAGE PER EMPLOYEE take total annual gross wages (not including owners or family members wages) and divide that total by the number of FTE employees.
This tax credit calculation is for years 2010 through 2013. The tax credit increases in 2014.
DISCLAIMER: Use of any information from this site and this tool is for general information and estimation purposes only and does not represent tax advice either express or implied. Please seek professional tax advice for tax questions and assistance.

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