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5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.
from Spencer’s Benefits Reports: On September 7, the Internal Revenue Service released a draft version of the form that small businesses and tax-exempt organizations will use to calculate the small business health care tax credit when they file income tax returns next year. The IRS also announced how eligible tax-exempt organizations––which do not generally file income tax returns––will claim the credit during the 2011 filing season.
A draft of Form 8941, available at http://www.irs.gov/pub/irs-dft/f8941--dft.pdf, may be used by both small businesses and tax-exempt organizations to calculate the credit. A small business will then include on its income tax return the amount of the credit as part of the general business credit. Tax-exempt organizations will claim the health care tax credit on a Form 990-T, revised for the 2011 filing season, which those organizations currently use to report and pay tax on unrelated business income.
The final version of Form 8941 and its instructions will be available later this year.
The small business health care tax credit, part of the Patient Protection and Affordable Care Act, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage that they already offer. In 2010, the credit is generally available to small employers that contribute an amount equivalent to at least half the cost of single coverage towards buying health insurance for their employees. The credit is targeted to small businesses and small tax-exempt organizations that primarily employ moderate- and lower-income workers.
For tax years 2010 to 2013, the maximum credit is 35% of premiums paid by eligible small business employers and 25% of premiums paid by eligible tax-exempt organizations, rising to 50% and 35%, respectively, for years 2014 and 2015. Because the eligibility rules are based in part on the number of full-time employee equivalents, and not simply the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.
For more information about the credit, including a step-by-step guide (at http://www.irs.gov/pub/irs-utl/3_simple_steps.pdf) and answers to frequently asked questions (at http://www.irs.gov/newsroom/article/0,,id=220839,00.html), visit the Affordable Care Act page at http://www.irs.gov.
For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.
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