Instructions For Form 8941 - Credit For Small Employer Health Insurance Premiums - 2016 Page 3
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30Health Insurance Coverage
requirement. Amounts you or your employee pay to cover
a tobacco surcharge aren’t considered premiums paid for
For tax years beginning after 2013, health insurance
health insurance coverage when figuring this credit.
coverage generally means coverage provided to
Dependent coverage. Premiums you pay for dependent
employees enrolled in a qualified health plan offered
coverage aren’t subject to the uniform percentage
through a Small Business Health Options Program
requirement. You aren’t required to pay a uniform
(SHOP) Marketplace. For an exception that applies to
percentage (not less than 50%) for dependent coverage.
certain employers in Wisconsin, see the
Line A
instructions, later. If this exception applies, health
Arrangements with composite billing. An
insurance coverage means coverage as defined under
arrangement that requires you to pay a uniform premium
Health Insurance Coverage in the 2013 Instructions for
for each enrolled employee (composite billing) and offers
Form 8941.
different tiers of coverage can be a qualifying arrangement
even if it requires you to pay a uniform percentage that is
A stand-alone dental plan offered through a
less than 50% of the premium cost for employees not
SHOP exchange will be considered a qualified
TIP
enrolled in employee-only coverage. It is a qualifying
health plan for purposes of the credit.
arrangement (assuming employee-only coverage is the
least expensive tier of coverage) if it requires you to pay
Employer premiums paid for health insurance
the following amounts.
coverage can be counted in figuring the credit
!
A uniform percentage (not less than 50%) of the
only if the premiums are paid under a qualifying
CAUTION
premium cost for each employee (if any) enrolled in
arrangement.
employee-only coverage.
Qualifying Arrangement
A uniform amount that is no less than the amount you
would have paid toward employee-only coverage for each
A qualifying arrangement is generally an arrangement that
employee (if any) enrolled in family coverage.
requires you to pay a uniform percentage (not less than
A uniform amount that is no less than the amount you
50%) of the premium cost for each enrolled employee's
would have paid toward employee-only coverage for each
health insurance coverage (defined earlier). An
employee (if any) enrolled in any other tier of coverage
arrangement that offers different tiers of coverage (for
(figured separately for each tier).
example, employee-only and family coverage) is generally
a qualifying arrangement if it requires you to pay a uniform
Arrangements with list billing and only employee-on-
percentage (not less than 50%) separately for each tier of
ly coverage. An arrangement that requires you to pay a
coverage you offer. However, an arrangement can be a
separate premium for each employee based on age or
other factors (list billing) that only provides employee-only
qualifying arrangement even if it requires you to pay a
coverage can be a qualifying arrangement even if it
uniform percentage that is less than 50% of the premium
requires you to pay a uniform percentage that is less than
cost for some employees.
50% of the premium cost for some employees. It is a
For more information about the following exceptions,
qualifying arrangement if it requires you to pay either of
see Regulations section 1.45R-4.
the following amounts.
State or local law. You will be treated as satisfying the
A uniform percentage (not less than 50%) of the
uniform percentage requirement if your failure to
premium charged for each employee enrolled in the
otherwise satisfy the requirement was solely attributable
employee-only coverage.
to additional contributions you made to certain employees
A uniform percentage (not less than 50%) of your
to comply with state or local law.
employer-computed composite rate (defined later) for
your employee-only coverage for each employee enrolled
Wellness program. If a plan of an employer provides a
in the employee-only coverage.
wellness program, for purposes of meeting the uniform
percentage requirement any additional amount of the
Arrangements with list billing and other tiers of cov-
employer contribution attributable to an employee's
erage. An arrangement that requires you to pay a
participation in the wellness program over the employer
separate premium for each employee based on age or
contribution with respect to an employee that doesn’t
other factors (list billing) that provides other tiers of
participate in the wellness program is not taken into
coverage can be a qualifying arrangement even if it
account in calculating the uniform percentage
requires you to pay a uniform percentage that is less than
requirement, whether the difference is due to a discount
50% of the premium cost for some employees. It is a
for participation or a surcharge for nonparticipation. The
qualifying arrangement (assuming employee-only
employer contribution for employees who don’t participate
coverage is the least expensive tier of coverage) if it
in the wellness program must be at least 50% of the
requires you to pay the following amounts.
premium (including any premium surcharge for
A uniform percentage (not less than 50%) for each
nonparticipation). However, for purposes of figuring the
employee enrolled in employee-only coverage as
credit, the employer contributions are taken into account,
discussed under Arrangements with list billing and only
including those contributions attributable to an employee's
employee-only coverage above.
participation in a wellness program.
A uniform amount that is either equal to the amount you
would have paid toward employee-only coverage (as
Tobacco surcharge. Any additional amount you or your
discussed above), a uniform percentage (not less than
employee pay to cover a tobacco surcharge isn’t taken
50%) of the premium charged, or a uniform percentage
into account in figuring the uniform percentage
(not less than 50%) of your employer-computed
-3-
Instructions for Form 8941 (2017)
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