Questions and Answers

Ask your general questions here.  We will try to respond as quickly as possible.  Do not include any personal identifiable information as others will be able to read it if we publish the question.  If you have specific questions, use the form below to contact us or call us directly.

2 Responses to “Questions and Answers”

  1. Mark Says:

    My business employs more than 25 people. I offer health insurance to the employees and pay half the cost. Can I still qualify for the tax credits available for small business?

    • Mark Farner, CPA Says:

      That all depends… The law states that if the employer provides at least 50 percent of their employee’s health insurance premiums, has fewer than 25 full-time equivalent (FTE) employees and pays wages averaging less than $50,000 per FTE per year, it may qualify for the credit. Although you have over 25 employees, you may still qualify for the credit because eligibility is based on FTE employees not the actual number of persons employed.

      For example, let’s say you have 30 employees, 18 of them are full-time and 12 are considered part-time. The full-time employees work 40 hours a week (or 2,080 annually). The part-time employees work 20 hours a week (or 1,040 annually). To calculate the number of FTEs, add the total number of hours paid during the year and divide by 2,080.

      ((18×2080)+(12×1040))/2080 = 24 FTEs

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