Generally, a business should count all employees during the year for which it is claiming the small business tax credit. This includes:
- former employees who terminated employment during the year;
- employees covered under a collective bargaining agreement; and
- employees who did not enroll in the employer’s health insurance plan (whether or not they are covered under another health insurance plan).
Generally, business owners and their family members are not considered as employees for purposes of the credit. Neither their wages nor their hours are counted in determining the number of FTEs or the amount of average annual wages, and premiums paid on their behalf are not counted in determining the amount of the credit.
To learn more about the small business tax credit or health care reform, go to healthcare.gov or uhc.com/reform.
This communication is not intended as legal or tax advice. Please contact a competent legal or tax professional for personal advice on eligibility, tax treatment and restrictions. Federal and state laws and regulations are subject to change.