Discussion:Form 8941 Small employer Health Ins. Premium Credit

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Discussion Forum Index --> Tax Questions --> Form 8941 Small employer Health Ins. Premium Credit

WillB11 (talk|edits) said:

28 February 2011
Is it ok to clasify employees under the weeks-worked equivalency?

1 full time employee 2080 hours: 1 part time 2 x week 1200 hours 1 part time 1 1/2 x per week 800 hours.

If I use only the "Actual Method" or the Days-Worked Equivalency" there is no credit. If I can use the "weeks-worked equivalency" I do get a credit. Each employee is on salary except the full time. Each employee works at least their regular 2 or 1 1/2 times per week. Is the Weeks-worked equivalency only for salaried or can I consider each employee as working 40 hours per week as they work at least 1 day a week?

Nightsnorkeler (talk|edits) said:

28 February 2011
You can use any of the three methods, in this case using the "weeks-worked equivalency method" results in 3 FTE's, which will probably give you the most value of the credit.

Nightsnorkeler (talk|edits) said:

28 February 2011
But don't forget to exclude the "excluded employees".

WillB11 (talk|edits) said:

2 March 2011
Thanks for the info...

Eddiea (talk|edits) said:

8 March 2011
i understand the actual hours worked method, but don't understand the language of the "days" or "weeks" equivalency. does it mean that if someone works one hour one day, they can be credited for an 8 hour day? i must be missing something. thanks.

Doug M (talk|edits) said:

9 March 2011

My understanding is this. If you work only one hour that day, you can count it as a full day. You then get to use 8 hours. And, of course the magic number is 2080. (you use hours in denominator, even if you are using weeks or days worked.)

Same for the weeks worked. If you worked 1 hour that week, you get credit for 40 hours.

Eddiea (talk|edits) said:

10 March 2011
thanks doug!

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