Fillable Form 72 - Idaho Hire One Act Credit

Instructions for Idaho Form 72

EFO00242p2

10-10-13

Employer-Provided Health Care Benefits

GENERAL INSTRUCTIONS

Employer-provided means an individual's employer must pay the

Form 72 is used to calculate the Idaho Hire One Act credit. This

following percentages of the cost of an employee's premium for

health care benefits;

credit is a refundable credit allowed to an employer on a sliding

scale based on the employer's unemployment insurance tax

• At least 80% of the cost of the employee's premium if such

rating. The credit is computed on the gross wages of qualifying

employee had single coverage.

new employees. An employer can claim the credit on a

• At least 70% of the cost of the employee's premium if such

qualifying new employee only if the employee:

employee had family coverage.

• Received qualifying employer-provided health care benefits;

Health Care Benefits That Qualify

• Received an average wage rate of at least:

○ $12 per hour if employed in an Idaho county with an

Health care benefits means coverage offered through a group

health plan for employees that includes hospital, medical and

unemployment rate of 10% or more;

○ $15 per hour if employed in an Idaho county with an

surgical expense coverage as follows:

unemployment rate of less than10%;

• An accident and sickness insurance policy that provides

• Was hired on or after April 15, 2011.

hospital, medical and surgical expenses coverage, to an

aggregate maximum of not less than $500,000;

You can't claim the credit for an employee if you have claimed

• Coinsurance percentage per year per covered person

a credit for that same employee on Form 85, Idaho Small

not to exceed 50% of covered charges, provided that the

Employer New Jobs Tax Credit.

coinsurance out-of-pocket maximum combined with any

deductibles does not exceed 4% of the aggregate maximum

Average Annual Earnings

limit under the policy for each covered person;

• For an hourly employee, qualifying gross wages paid by the

• A deductible stated on a per person, per family, per illness,

per benefit period, or per year basis, or combination of these

employer is divided by the number of hours worked for the

taxable year.

bases not to exceed 4% of the aggregate maximum limit under

• For a salaried employee, qualifying gross wages paid by

the policy for each covered person for at least:

○ Daily hospital room and board expenses subject only to

the employer is divided by 2,080 hours if the employee was

employed on a full time basis for the entire taxable year. If

limitations based on average daily cost of the semiprivate

a salaried employee was regularly scheduled to work more

room rate in the area where the insured resides;

○ Miscellaneous hospital services;

or less than 40 hours per week, the computation must be

○ Surgical services;

adjusted accordingly to determine the hourly rate. For

○ Anesthesia services;

example, if an employee was regularly assigned to work a

○ In-hospital medical services; and

32 hour week and worked for the employer the entire taxable

○ Out-of-hospital care, consisting of physicians' services

year, the gross wages actually paid must be divided by 1,664.

The total hours must not be reduced for days taken off, such

rendered on an ambulatory basis where coverage is

as vacation, sick leave, or personal days, if such days off were

not provided elsewhere in the policy for diagnosis and

paid. If the employee's annual salary was adjusted for days

treatment of sickness or injury, diagnostic x-ray, laboratory

taken off that are not paid, the number of hours should be

services, radiation therapy, and hemodialysis ordered by a

adjusted in a consistent manner.

physician.

• Gross wages does not include:

• Additional benefits. Health care benefits must also provide not

○ Nontaxable fringe benefits;

fewer than three of the following benefits:

○ Tips paid by customers of employers;

○ In-hospital private duty registered nurse services;

○ Wages that are subsidized through another taxpayer or

○ Convalescent nursing home care;

○ Diagnosis and treatment of radiologist or physiotherapist;

program, including any federal or state grant.

○ Rental of special medical equipment, as defined by the

Employed in an Idaho County

insurer in the policy;

An employee is employed in a county if:

○ Artificial limbs or eyes, casts, splints, trusses or braces;

○ Treatment for functional nervous disorders, and mental

• The employee's service is performed entirely within the county;

and emotional disorders; or

• The employee's service is performed both in and outside

○ Out-of-hospital prescription drugs and medications.

the county, but the service performed outside the county is

incidental to the employee's service in the county; or

Health Care Benefits That Don't Qualify

• Some of the service is performed in the county and:

Health care benefits don't include limited benefit policies

○ The base of operations is located in the county or,

or certificates of insurance for specific disease, hospital

○ If there is no base of operations, the place from which the

confinement indemnity, accident-only, credit, dental, vision,

service is directed or controlled is in the county, or

Medicare supplement, long-term care, or disability income

○ The base of operations or the place from which the

insurance, student health benefits-only coverage issued as a

service is directed or controlled is not in any county in

supplement to liability insurance, worker's compensation or

which some part of the service is performed, but the

similar insurance, automobile medical payment insurance or

individual's residence is in the county.

nonrenewable short-term coverage issued for a period of 12

months or less.

Form 72 - Idaho Hire One Act Credit - 2013 Page 2

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