Legislation signed into law earlier this year makes two new credits available to employers.
The first is a tax credit for employers who provide health insurance to their employees. Businesses with 25 or fewer full-time employees and average yearly wages of less than $50,000 (excluding the owner/owners of the business) may be eligible for up to a 35% tax credit of the actual cost of the insurance or the average group premium for small employers in the employer's state. Businesses are required to contribute a minimum of 50% of the cost of the insurance.
The second credit is a tax credit for hiring unemployed workers after February 3, 2010 and before January 1, 2011. The credit is the employer's share of social security (6.2%) paid to workers after March 18, 2010. In addition, for each worker retained at least a year, businesses may claim an additional credit of up to $1,000 when they file their 2011 income tax returns. Form W-11 must be completed by the newly hired employee certifying that they are a "qualified employee" under the HIRE act.
More detailed information and Form W-11 are available on the IRS website (www.IRS.gov). Form W-11 may also be found on our website by clinking on "Forms."
