Tax credit benefit to employers that: - Have fewer than 25 full-time equivalent employees - Pay average wages of less than $50,000 a year per full-time equivalent - Offer a qualified health plan to its employees through a Small Business Health Options Program Marketplace (or qualify for a limited exception to this requirement) - Pay at least 50 percent of the cost of employee-only – not family or dependent – health care coverage for each employee The maximum credit is up to 50 percent of premiums paid for small business employers and up to 35 percent of premiums paid for small tax-exempt employers. The credit is available to eligible employers for two consecutive taxable years. For more detailed information regarding the credit, visit the IRS at Small Business Health Care Tax Credit and the SHOP Marketplace. For information about qualified health plans offered through the SHOP Marketplace, visit Healthcare.gov. TAXATION OF NON-MINNESOTA BUSINESSES DOING BUSINESS IN MINNESOTA Non-Minnesota businesses that do business or own property in Minnesota may be subject to state taxes if they have sufficient nexus. Generally, businesses that meet all of these activities that have nexus: • Having a place of business in Minnesota • Having employees or independent contractors conducting business in Minnesota • Owning or leasing real property or tangible personal property in Minnesota - Obtaining or soliciting business within Minnesota such as - Selling products or services to customers in Minnesota who receive the product or service in Minnesota - Engaging in transactions with customers in Minnesota that involve intangible property and results in income • Direct mail, phone solicitation, or various forms of advertising in Minnesota Nexus can be complicated to determine. Contact the Minnesota Department of Revenue for assistance. TAXATION OF BUSINESSES OPERATING WITHIN AND OUTSIDE MINNESOTA Businesses that operate within and outside Minnesota are required to calculate the amount of income subject to Minnesota tax. They must allocate the business income to Minnesota based onthe percentage of sales made within Minnesota compared to total sales.
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