IRS Online Tools to Help Employers Estimate Health Care Law’s Effect on Taxes

Whether you’re an employer or an individual taxpayer, the IRS Taxpayer Advocate Service has several tools available to assist you in estimating credits and payments related to the Affordable Care Act. The Taxpayer Advocate Service recently added a tool to help employers understand how the employer shared responsibility provisions apply to their organization.

Because these tools provide only an estimate, you should not rely on them as an accurate calculation. You should use these estimators only as a guide to assist you in making decisions regarding your tax situation.

Tools for Employers

The Employer Shared Responsibility Provision Estimator  helps you understand how the provision works and how it may apply to your organization. If you are an employer, you can use the estimator to determine the number of your full-time employees, and whether you might be an applicable large employer. You can also use this estimator to compute your maximum potential liability for the employer shared responsibility payment.

The Small Business Health Care Tax Credit Estimator helps determine if you might be eligible for the Small Business Health Care Tax Credit and how much credit you might receive. This tool provides you with an estimate for tax year 2014 and beyond. However, some figures used in determining the credit are indexed for inflation. Because of this, for future years, the estimator cannot provide a detailed estimate.

Source: IRS  |  2016 © Copyright Payroll Masters

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