UnitedHealthcare Small Business Health Care Tax Credit Modeling Tool
This tool is for illustrative purposes only, and does not constitute legal or tax advice. UnitedHealthcare does not warrant or certify the results of using the tool.
Employers need to consult with their own tax or legal representatives before finalizing any plans based on the use of this tool.
As with other areas of health care reform, details of the Small Business Tax Credit program continue to evolve through frequent regulatory guidance.
This tool is confidential and proprietary information, constitutes trade secrets of UnitedHealthcare and may not be copied without UnitedHealthcare's explicit written approval.
Part 1 - Eligibility
Eligibility Step 1
Tax Year 1
Total Full Time Employees 2
Part-Time Employees 3
Average Hours Per Week for a Part Time Employee
Total Full Time Equivalent Employees 4
Eligibility Step 2
Estimated Total Annual Wages Paid to Full Time Equivalents from Step 1.
Eligibility Step 3
Does the employer pay less than 50% of any employee's premiums? 5
Estimated Annual Total Plan Premiums (based on employee-only coverage) 6
Estimated Annual Total Plan Premiums paid by Employer 7
% Premiums Paid by Employer
Part 2 - Tax Credit Calculation, Tax Years 2010-2013
Credit Calculation Step 1
Select Tax Exemption Status
Select State of Business Operation
Credit Calculation Step 2
# Employees with Employee Only Coverage
# Employees with All Other Coverage Levels
Estimated Total Premium from State Averages
Estimated Total Health Plan Premiums paid by Employer
Final Estimated Credit Calculation
Estimated Qualified Premium for Credit
Estimated Total Initial Credit (Before Deductions)
Estimated FTE Credit Reduction
Estimated Wage Credit Reduction
Estimated Total Credit 8 , 9
Designated tax year for calculator estimate. Only applicable from 2010 through 2013.
Employees that work at least 40 hours per week. Owners or Family Members Do Not Count. See Appendix 1.1 for details.
Seasonal workers who work less than 120 days for the year do not count. Owners or Family Members Do Not Count. See Appendix 1.2 for details.
Regular full time employees, plus the total equivalent of all part time employees.
If an employer does not pay a uniform % of coverage for all employees, transition relief for 2010 allows for non-uniform coverage as long as the employer pays a minimum of 50% for each employee based on employee-only coverage. Years beyond 2010 will call for a uniform % to be paid.
Total of all employee premiums based on employee only coverage for each employee. See Appendix 1.3 for details.
Total premiums paid which are actual premiums across all coverage levels and can include subsidies. See Appendix 1.4 for details.
For tax-exempt employers, total credit cannot exceed the total amount of income and Medicare tax for the year and does not reduce potential state credits. See Appendix 2.1 for details.
The employer's deduction for group health premiums is reduced by the tax credit and the total credit cannot exceed the employer's net premium payments.
In other words, an employer cannot take advantage of both a deduction on premiums paid and also receive a credit for those same premiums paid.
The employer should consult with their own tax advisor to determine what is best for them based on their company's circumstances.