Small-Business Health Credit
Calculate a small-business health credit from caller-supplied rate, cap, and phaseout.
Description
A health-credit scenario first caps a percentage of premiums, then reduces that capped credit by a phaseout fraction.
A health-credit scenario first caps a percentage of premiums, then reduces that capped credit by a phaseout fraction. The order of those operations affects the result.1
Calculate a small-business health credit from caller-supplied rate, cap, and phaseout.
When to use Small-Business Health Credit
Use this tool to calculate a small-business health credit from caller-supplied rate, cap, and phaseout.
Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.
How to use Small-Business Health Credit and understand its results
- Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.
- Enter eligiblePremiums, creditRatePercent, maximumCredit, phaseoutPercent using the field table and calculation rules, then run the tool.
- Read grossCredit, creditAfterPhaseout. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| eligiblePremiums | Eligible employer premiums (currency) | number; minimum: 0 | Required |
| creditRatePercent | Credit rate (%) | number; minimum: 0 | Required |
| maximumCredit | Maximum credit (currency) | number; minimum: 0 | Required |
| phaseoutPercent | Computed phaseout (%) | number; minimum: 0; maximum: 100 | Required |
Enter nonnegative premiums, maximum and credit rate, with phaseout percentage in 0–100. Calculate the capped gross credit, reduce it by the phaseout fraction, and return gross and after-phaseout credit.
gross=min(maximum,premiums×rate/100); net=gross×(1−phaseoutPercent/100) Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| grossCredit | Gross credit (currency) | number; minimum: 0 |
| creditAfterPhaseout | Credit after phaseout (currency) | number; minimum: 0 |
{
"input": {
"eligiblePremiums": 40000,
"creditRatePercent": 50,
"maximumCredit": 18000,
"phaseoutPercent": 25
},
"output": {
"grossCredit": 18000,
"creditAfterPhaseout": 13500
}
}Limitations and assumptions
Phaseout percentage is supplied rather than derived from employees, wages or other eligibility criteria. This does not calculate a tax return credit entitlement.
Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Clean-Energy Credit: Calculate a clean-energy credit using caller-supplied rate and cap. For a complementary task, use Adoption Credit Expense: Subtract employer assistance from qualified adoption expenses and apply a caller-supplied cap.
References
-
Small-Business Health Credit — tool.io
Similar or alternative tools
- Clean-Energy Credit
Calculate a clean-energy credit using caller-supplied rate and cap.
- Adoption Credit Expense
Subtract employer assistance from qualified adoption expenses and apply a caller-supplied cap.