IRS 2011 changes to the employer contribution requirements (uniform percentage issue). According to the IRS current ‘final’ guidance, they were concerned with different percentage contributions between employees. Therefore, as long as the employee contribution percentage is consistent between employees, employers are not obligated to contribute to the dependents costs in order to qualify for the tax credit.

So therefore you can’t incentivize one employee and still get your tax credit!  Really?!  Well that is the rule and you will have to incentivize them some other way, because that tax credit is a great deal if you are a small business!

This applies to alot of insurance types, contact us to find out how you can save and incentivize your employees too!