Small Employer Credit Killer Information And Advice
The small employer credit is intended to help small businesses that adopt a defined benefit or a defined contribution plan, including 401 (k).The Small Employer Credit covers 50 percent of the first $1,000 of administrative and retirement education expenses for the plan adopted by employer, for each of the first three years of the plan’s existence.
Small Employer Credit – Eligibility
An employer can claim this nonrefundable income tax credit if he had less than 100 employees with compensation in excess of $5,000 in the preceding year.Additionally, to qualify for the credit, the employer’s plan must offer coverage for at least one non highly compensated employee.