Missouri Synod churches, schools and organizations enrolled in the Concordia Health Plan (CHP) may be eligible for a tax credit.
The 2010 Patient Protection and Affordable Care Act passed by Congress in March of last year includes provisions for the Small Business Health Care Tax Credit. The legislation allows small businesses and organizations that are providing and paying a portion of health coverage for their workers to claim a refundable credit.
According to Jim Sanft, president and CEO of Concordia Plan Services (CPS), some LCMS congregations have already qualified for a tax credit of more than $16,000. He added that CPS — the Synod worker-benefits arm that administers the CHP — estimates that 2,000 LCMS ministries may be eligible for the credit, and that synodwide, the total for those credits may be as much as $11 million.
Sanft emphasized that CPS “is working to increase awareness of this credit and the thousands of dollars that may be available to employers across the Synod.”
The maximum credit goes to smaller employers — those with 10 or fewer full-time employee equivalents and paying average annual wages of $25,000 or less and have eligible payroll tax withholdings.
The tax credit is available for tax years 2010-2013.
The IRS form to file for the credit is Form 990-T, titled “Exempt Organization Business Income Tax Return,” which may be downloaded from the IRS website, www.irs.gov.
IRS Form 8941 — also available from the IRS site — gives instructions for calculating and claiming the credit.
The deadline to file for the credit is the 15th day of the fifth month after the end of the employer’s tax year. Employers also can file for an automatic three-month extension by submitting IRS Form 8868.
For more information on the Small Business Health Care Tax Credit and for a sample calculation guide, visit the “Resources” section of www.concordiaplans.org and click on the link to the “Employer Resource Materials” page, or visit the IRS website. Due to the complexity of calculating the credit, employers also are encouraged to seek assistance from a tax professional.
To find out more about Concordia Plan Services, visit www.concordiaplans.org or call 888-927-7526.
Posted Sept. 22, 2011