What are full-time workers for the Small Business Health Care Tax Credit?

The Small Business Health Care Tax Credit actually looks at the number of what it calls, "full-time equivalent" employees. We will figure this for you based on your answers on this screen.

This is the sum of full-time employees and the number of "full-time hours" worked by part-time employees.

The way to figure this is to add the following:

1. The number of full-time employees
2. The total number of hours worked by part-time employees / 2080

For example, if you have three regular full-time employees and two part-time employees that each work half time (1,040 hours), then for purposes of this credit, you have four full-time equivalent employees.

If you have more than 25 employees, but many of them are part-time, you may still qualify for the credit.

Sole proprietors, partners in a partnership, shareholders owning more than two percent of an S corporation, and any owners of more than five percent of other businesses do NOT count as employees for purposes of the credit.

Family members of these owners and partners are also NOT counted as employees.